The Union of European Clubs (UEC) on Monday proposed a new financial model under which UEFA would allocate 5% of its revenue from club competitions to lower-ranked football clubs that focus on developing elite players.
UEFA projects a gross revenue of 4.4 billion euros for the 2024-25 season from the Champions League, Europa League, Conference League, and Super Cup, meaning 5% would amount to 220 million euros ($244.79 million).
The proposed system, called the Player Development Reward (PDR), would provide payouts exclusively to clubs that did not qualify for the Champions League group stage. These payouts would be determined by the minutes played in UEFA competitions and the prize money earned by players.
In a statement, the UEC, which represents non-elite professional clubs, said the PDR is "a pragmatic, merit-based approach to restoring fairness and balance in the football ecosystem."
"The concept has already been presented to the European Commission and key stakeholders across football, receiving encouraging initial feedback," it added.
"The core principle is clear: Clubs that invest in player development should be fairly rewarded when those players contribute to the success of European competitions."
The UEC added that nearly 1,500 clubs across Europe would have received PDR payments if the system had been in place last season, with more than 400 clubs earning more than 100,000 euros.
UEFA has committed 7% of its revenue for the 2024-27 cycle to clubs not taking part in men's continental competitions, but the UEC said UEFA's system was "outdated and misaligned with the goals of sustainable football."
"We acknowledge the proposal. The solidarity system was reviewed with stakeholders ECA and EL prior to the cycle's start and is now in its first year of operation. The matter will be raised when the time is due," a UEFA spokesperson said.
The UEC was formed in 2022 and is separate from the European Club Association (ECA), which is headed by Nasser Al-Khelaifi and says it is the sole representative body of clubs in Europe.
The ECA, which has a Memorandum of Understanding with UEFA that runs until 2033, represents more than 440 clubs across the continent, although it is dominated by the big teams.
