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I know it definately comes in to play when the news says that, for example, Manchester United face a 3500km round trip after drawing Shaktar Donetsk in the Champions League third round. Beyond that, i think it may also determine the cities of birth of a the regens coming through (eg Manchester United would be more likely to have someone from Wigan come through the ranks than from Southhampton due to the cities being closer) but i ain't 100% sure on that.
Well the main thing this is for is for Conference North/South and things like that. So that the teams are put in the group they should be in. So the 22 msot norht teams go into Conference North and the 22 most South teams go into conference south. But also the news item thing in the above post is dependent on this
Ruttiger is correct. It affects the birthplace of regens. I created the town of Whitefield (in Manchester) and before putting latitude and longitude in I got regens from places in southern England. Now I get them from Radclife, Whitefield, Bolton, Bury, Burnley, Acrington, Rochdale. You get the idea. If this matters to you (it does to me) then you can easily find the numbers out from any atlas.
It also does things like sorts out reserve and U18 groups. Like in England, the Prem has 2 reserve groups of 10, one north and one south, then the Football League is split up locally, rather than by division.