Celtic alerted to seismic Champions League change as Rangers keep watch over £513m 'coefficient funding' revamp

UEFA are set to put Celtic and Rangers on alert as they plan for a major revamp to one of the ways they distribute Champions League cash to clubs.

Brendan Rodgers' side are enjoying the riches of group stage football this season while Rangers will hope to next season, after elimination at the play-offs against PSV this week, with the Premiership title race holding an added lure of a guaranteed top table spot in recent seasons.

Major change is ahead though, as the system that allocates 30% of Champions League cash based on a club's historic achievements in Europe moves close to reform, and money will instead be awarded on current performance money awarded based on present performance instead, according to The Times. The "coefficient funding" formula has operated since 2017 and splits that 30% - roughly €600 million (£513 million) - between the 32 clubs in the group stage in line with a points system based on performances over 10 prior years in European competition.

Bonus points are added for each European trophy that a club has won over their history, such as Celtic's Europa Cup triumph in 1967. UEFA and the European Club Association (ECA) talks over the reforms have been dragging on for over a year.

But the report states: "Sources say an agreement has been reached in principle. From the 2024-25 season, when the new Champions League format will start featuring 36 teams and when clubs' income from the tournament is expected to rise significantly, the historic funding element will be greatly reduced, with performance bonuses increased instead."

The coefficient funding model was brought in after large clubs started to make demands, claiming to be the drivers of global interest and TV income. The European Super League's