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Champions League knockout rules explained with big change made after Arsenal complaint

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Arsenal finished with a perfect record in this season's Champions League league phase after placing third out of 36 teams last season

Paris Saint-Germain knocked Arsenal out of last season's Champions League(Image: Xavier Laine/Getty Images)

Here's everything you need to know about the Champions League knockout rules:

Arsenal complaint forces rule change: To resolve complaints from Arsenal and Barcelona, teams ranked 1st–4th were guaranteed to host the second leg of the quarter-finals, a change from last season. The 1st and 2nd ranked teams are also guaranteed to host the second leg of the semi-finals. Arsenal finished in first place and were the only club to win all eight matches.

The Seeding "Inheritance" Rule: If a lower-ranked team knocks out a top seed, they "steal" that seed's bracket position and benefits. This means an underdog could inherit the right to host the second leg of a semi-final by beating a top-two team.

The Fixed Bracket System: After the play-offs, the remaining teams were placed in a fixed, tennis-style bracket based on their league ranking. This ensures the 1st and 2nd seeds (Arsenal and Bayern Munich) are on opposite sides and cannot meet until the final in Budapest.

Abolished away goals: If a tie is level on aggregate after 180 minutes, the match proceeds to two 15-minute periods of extra time. If the score remains tied after 210 minutes, a penalty shootout determines the winner. There is no away goals rule.

Substitution rules: Teams are permitted five substitutions per match, which must be made within three distinct "stoppage windows." If a match goes to extra time, each team is granted a sixth substitute and one additional stoppage window.

VAR and goal-line technology: The Video Assistant Referee (VAR) is used in every knockout match to review goals, red cards, penalties, and mistaken identity. Semi-automated offside technology is also active to ensure pixel-perfect calls on tight offside decisions.

No Europa League drop-downs: Teams eliminated at any stage of the Champions League knockout rounds no longer drop into the Europa League. Teams who finished outside the top 24 in the league phase or lost in their knockout play-off have seen their European adventure end for the season.

Neutral final: The final is a single-leg match played at a neutral venue, which for 2026 is the Puskás Aréna in Budapest. One team is designated as the "home" side for administrative reasons, such as kit selection and changing room assignments.

Watch the Champions League on TNT Sports

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