The UEFA Champions League, Europe’s elite soccer competition, has long allowed clubs from outside the continent's so-called “top five” leagues (England, Spain, Germany, Italy, and France) to gain wider exposure across the region. This has allowed some teams from less prominent soccer nations to etch themselves into the collective memory of fans with iconic performances and players.
Owing to a raft of Brazilian players who would go on to star for sides across Europe, backed by a strong core of Ukrainian talent, Shakhtar Donetsk is one such side that won admirers across Europe in the 2010s, a period that saw the club reach the Champions League quarter-finals (2010-11), and the round-of-16 three times more across the following eight years.
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While the club’s strong player development model has brought significant on-pitch success, including 12 domestic Ukrainian Premier League titles in the last 17 seasons, the years have been marked by significant off-field challenges. In 2014, war broke out in the Donbas region of Ukraine, forcing the club from its Donetsk home, and in 2022, Russia’s invasion of Ukraine naturally exacerbated this further, pushing the entire country into turmoil.
Since 2014, Shakhtar has played domestic matches in Kyiv, Lviv (its current home), and Kharkiv, while UEFA competition games have taken place in Poland (Warsaw) or Germany (Hamburg, Gelsenkirchen), putting the club in a unique situation. Despite this, strong European performances have persisted, giving the club a foundation with which to continue its revenue generation strategy and maintain a sustainable business model despite the external pressures.
In the 2023-24 season, Shakhtar generated UAH2.82 billion in revenue ($67.6 million). While income has consistently stayed above UAH2 billion since the 2017-18 season, including a bumper UAH5.99 billion generated in 2022-23 – thanks almost entirely to the €70 million sale of Ukrainian star Mykhalo Mudryk to English side Chelsea – player trading has had to play an increased role in sustaining the club.
Close to three-quarters of the 2023-24 revenue (UAH1.9 billion) came via participation in European competition, while just UAH293 million came from commercial sources.
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By GlobalDataBy comparison, in the 2018-19 campaign, the last full season prior to both the 2022 invasion and the 2020 onset of the Covid-19 pandemic, the club generated UAH680 million in commercial revenue, more than double the latest tally, indicating the level to which the club’s commercial activities have suffered.
Despite a challenging 2024-25 season that failed to yield success in the Ukrainian Premier League, Shakhtar defeated bitter rivals Dinamo Kyiv in the final of the Ukrainian Cup on May 14.
Ahead of that fixture, Shakhtar chief executive Sergey Palkin spoke to Sportcal (GlobalData Sport) about how the club is managing to compete commercially with Europe’s best and maintain its grip on domestic silverware despite the continued conflict that has wracked the country, and the changes to UEFA’s operations over the years.
Given that the club plays domestic home games in Lviv and European home games in Germany, with no permanent stadium to advertise in, what struggles are there in retaining and adding new commercial partners, and how is the club working around those?
Palkin: “While having a permanent stadium can be a valuable asset for sponsor visibility, it’s not the most critical factor for attracting or retaining commercial partners, especially primary sponsors.
“In today’s landscape, reach is more important than physical placement. TV broadcasting and digital platforms are the main tools that deliver this reach, and that’s where we focus. We work closely with partners to ensure maximum visibility through media exposure, social campaigns, and UEFA competitions. These elements are far more scalable and impactful than traditional in-stadium advertising.”
While most European sides focus on media rights revenue, many others prioritize player trading and sponsorship revenue. Given that the club plays in the Champions League, is the former still the case for Shakhtar?
“Yes, it is. The media rights market in Ukraine remains underdeveloped. Media revenues are closely tied to the strength of a country’s retail and advertising economy, and Ukraine currently cannot compete with the scale seen in England, Germany, France, Italy, or Spain. As a result, we lean more on sponsorship and player trading to drive revenue.”
Which commercial sectors are most important to Shakhtar?
“Our key commercial drivers are revenue from participating in UEFA competitions and sponsorship. These two areas provide the most consistent and scalable sources of revenue for the club.”
Shakhtar has won each of the last two editions of the Ukrainian Premier League and six of the last seven. To what do you attribute your dominance over rivals Dynamo Kyiv, and how has that affected the club’s ability to generate commercial revenue over the years?
“Our success is the result of a combination of strategic planning and strong operational execution. We focus on smart recruitment—signing promising young talents—and long-term player development. Sustained domestic success strengthens our brand, increases visibility, and builds trust with commercial partners, which in turn helps generate more revenue.”
How has the new Champions League format, primarily the added fixtures and removal of the Europa League drop, affected Shakhtar, positively or negatively?
“Overall, the impact has been positive. The expanded group stage means we now play eight matches against a wider range of opponents, compared to just three in the previous format. This creates more excitement for fans, offers players better development opportunities, and increases media exposure—benefiting both sporting and commercial aspects of the club.”
When targeting increased revenue generation outside of one of Europe’s top five leagues, what are the primary factors the club looks at?
“We primarily focus on player development and innovation – especially creating new commercial and financial products, for example, soccer school franchises. These strategies allow us to tap into broader markets and diversify revenue in the absence of top-tier media rights income.”
How has the ongoing conflict affected commercial revenue, logistics, and recruitment, even compared to the post-2014 status?
“The ongoing conflict has had a significantly negative impact. Revenue has declined, logistical operations are more complex – particularly due to the absence of regular flights – and recruitment has become more challenging. Attracting and retaining top talent, both on and off the pitch, is more difficult under current conditions, and it affects all aspects of our operations.”
Is the financial support the club gets from UEFA enough?
“The support we receive from UEFA is sufficient to sustain the club’s operations, but it’s not enough to drive long-term growth and development. Investments in infrastructure, youth development, and international expansion require additional revenue streams beyond UEFA distributions.”
