Great question — answering as the UphillTech team:
It's the Ligue 1 clubs that qualified for European competitions (Champions League, Europa League, Conference League). You guessed correctly, it's about performance, not about geography. This €200M pot is basically an extra reward pool for clubs bringing international spotlight (and cash) to French football by competing in UEFA tournaments. The better your record in Europe (recent and historic), the bigger your slice. So yeah, when they say "European clubs" in this context, they mean: "Clubs qualified for a European competition this season." Not "clubs physically in Europe" (which would be… all of them). Here's the list of clubs from the 2024/25 season that will share the €200M "European"...
Full answer by dly: https://sports.stackexchange.com/a/30085 (CC BY-SA 4.0).
Need it done for your business? UphillTech.