How does UEFA distribute money among clubs?

I always wondered how UEFA distributes the money among clubs and across competitions and how do these clubs use that money, so basically it seems there are 4 base pillars they use:

1. Participation Fee

This is a guaranteed amount paid simply for qualifying for a competition.

Champions League clubs earn the largest participation fee then Europa League clubs then Conference League clubs.

It ensures that even smaller clubs who only enter the group stage for the first time come away with meaningful money that helps them compete financially in their domestic league.

2. Performance Bonuses

Clubs earn additional money for

• Wins in the group stage

• Draws in the group stage

• Reaching knockout stages

• Progressing to quarter finals semi finals and finals

Every European competition has its own prize scale but the pattern stays the same. The further you go the more you earn and the growth is dramatic in the Champions League where each round multiplies the prize money.

3. Coefficient Payout

This is where historic clubs gain a huge advantage.

UEFA ranks clubs based on their results in European competitions over the last ten years. These rankings are turned into shares and each share has a fixed value. Clubs are then paid based on how many shares they hold.

A team with long term European history earns significantly more than a newcomer even if both finish in the same position in the tournament. It rewards consistency but it also widens the financial gap between established and emerging clubs.

4. Market Pool Distribution

The market pool is based on the value of television rights in each country.

It means clubs from countries with large broadcasting markets earn more money even if they do not go far in the competition. The strongest market pools are usually England Italy Germany Spain and France.

A club from a smaller market such as Belgium Scotland or Switzerland might outperform a club from England but still earn less money because the broadcasting value in their home country is lower.

I have posted it in detail here as well - https://false9forum.com/how-uefa-distributes-money-to-clubs/