What Champions League Exit Means for Rangers: Financial Impacts and Future Prospects

Rangers’ recent exit from the Champions League has significant implications for the club, both financially and strategically. After their 3-1 aggregate defeat to Dynamo Kyiv in the third qualifying round, Rangers missed out on the chance to advance to the play-off round and, more importantly, the lucrative group stages of Europe’s premier competition. This outcome leaves the club facing a considerable financial shortfall and raises questions about their ability to compete domestically and in Europe.

Financial Blow: Counting the Cost of Champions League Exit

Rangers’ Champions League exit represents a financial hit that cannot be understated. The club stands to miss out on at least £12 million in the short term, a figure that could have significantly bolstered their budget for the upcoming season. Manager Philippe Clement acknowledged the financial implications, stating, “Financially, it’s a big difference for the club,” and noting that the loss of Champions League revenue would “also make a difference” to recruitment.

The financial disparity between the Champions League and the Europa League is stark. According to UEFA, the governing body will distribute £2.12 billion to participating Champions League clubs in the 2024-25 season, while Europa League clubs will receive a share of £485 million—roughly 22% of the Champions League’s total. This discrepancy highlights the substantial gap in potential earnings between the two competitions.

For Rangers, participation in the Europa League could bring in between a fifth and a quarter of what they would have earned in the Champions League. The exact amount depends on their performance, but it is clear that the club will need to navigate a challenging financial landscape.

Europa League Prospects: What Rangers Can Expect

Rangers are now set to compete in the Europa League, where they are guaranteed £3.7 million in revenue. This pales in comparison to the nearly £16 million that Celtic, their arch-rivals, are guaranteed by reaching the Champions League’s new league phase.

While the Europa League offers lower financial rewards, there are still opportunities for Rangers to boost their earnings through strong performances. A win in any of the eight league-phase games would earn them approximately £386,000, while a draw would net £129,000. Additionally, the club will receive performance-related payments based on their final position at the end of the league phase.

Progression through the knockout stages also offers financial incentives. Qualification for the Europa League knockout round is worth £257,000, with the prize money increasing at each stage: £1.5 million for the last 16, £2.15 million for the quarter-finals, £2.6 million for the semi-finals, £7 million for reaching the final, and an additional £6 million for winning the competition.

However, it would take a deep run in the tournament—similar to Rangers’ journey to the Europa League final in the 2021-22 season—to approach the level of income they could have earned from participating in the Champions League group stage.

Coefficient Concerns: Impact on Scottish Football

Rangers’ exit from the Champions League also has implications for Scotland’s UEFA coefficient, a measure that influences where clubs and associations are ranked and seeded in European competitions. Rangers currently hold a coefficient ranking of 28, thanks largely to their strong performances in recent Europa League campaigns. This places them 41 spots higher than Celtic, who have struggled to make a significant impact in Europe in recent years.

Scotland’s overall coefficient ranking, however, has slipped from 11th to 17th, partly due to the inconsistent performances of other Scottish clubs in European competitions. Last season, Rangers played 12 European fixtures, winning four and drawing five, while Aberdeen, Celtic, Heart of Midlothian, and Hibernian collectively managed just five wins and six draws from 24 games.

With Scotland now outside the top 15 in the UEFA rankings, the nation’s champions next season are likely to face qualifiers to reach the Champions League league phase, making it more difficult for Scottish clubs to secure direct entry into Europe’s top competition.

This season’s results will further impact Scotland’s coefficient for the season after next. While Celtic have secured direct entry to the Champions League league phase, Rangers, Hearts, and other Scottish clubs will need to perform well in their respective European campaigns to improve the nation’s standing.

Financial Disparity: The Growing Gap Between Celtic and Rangers

One of the key challenges facing Rangers is the growing financial gap between themselves and Celtic. Football finance expert Kieran Maguire highlighted this issue, stating that Rangers’ failure to qualify for the Champions League will “put a £20-30 million hole on top of an existing gap” between the two clubs.

Celtic, who have benefited from consistent participation in the Champions League group stages, enjoy higher commercial revenues and matchday income, partly due to their larger stadium. This financial advantage allows Celtic to invest more in player recruitment and wages, giving them an edge over Rangers in domestic and European competitions.

As Maguire explained, “It’s essential for Rangers to be regularly participating in the Champions League for them to get back on to more of an equal footing with Celtic.” Without the financial boost that Champions League football provides, Rangers will struggle to match Celtic’s spending power in the transfer market and their ability to offer competitive wages to top players.

Future Prospects: Rebuilding and Competing

Despite the disappointment of their Champions League exit, Rangers must now focus on making the most of their Europa League campaign and closing the financial gap with Celtic. Success in the Europa League could help to mitigate some of the financial losses and provide the club with the resources needed to strengthen the squad.

Moreover, Rangers will need to continue to build on their recent successes in Europe to maintain their high coefficient ranking and secure favourable draws in future competitions. Strong performances in the Europa League, coupled with consistent domestic form, will be crucial in keeping pace with Celtic and challenging for titles.

Ultimately, Rangers’ ability to compete at the highest level will depend on their financial stability and strategic planning. While the loss of Champions League football is a significant setback, it also presents an opportunity for the club to regroup, refocus, and come back stronger.