FIFA is set to distribute $1 billion in prize money to clubs participating in the expanded Club World Cup this summer.
The inaugural 32-team tournament will take place in the United States from 14 June to 13 July.
The final will be held at the MetLife Stadium in New Jersey.
The prize money figure is significantly higher than that offered for either the men’s or women’s World Cups.
FIFA is set to distribute $1 billion in prize money to clubs participating in the expanded Club World Cup this summer
Reuters
The funding is partly based on the $1 billion exclusive global TV deal agreed with sports streaming service DAZN in December.
FIFA has also secured sponsorship contracts with Coca-Cola, Bank of America, Hisense and AB InBev.
The $1 billion prize money will be split between participation fees and performance-based rewards.
Sources told The Independent that $575 million will be allocated based on participation, while $465 million will be tied to sporting performance.
The participation fees will not be evenly distributed among the 32 clubs.
Instead, they are expected to be graded based on confederation, recognising that equal payments would have different competitive impacts across regions.
Manchester City and Chelsea could each receive between $60 million and $90 million from the tournament.
The 32 clubs involved, including 12 European clubs, will share what FIFA expects to be the biggest revenue ever for a club football tournament.
FIFA will also provide “solidarity payments” of at least $150 million to clubs not participating in the tournament.
This comes from a planned overall tournament budget of $2 billion.
There are hopes this solidarity figure could be increased to $250 million, according to The Independent.
Manchester City and Chelsea are among the clubs involved in the Club World Cup
GETTY
Some stakeholders have already expressed concern that these payments won’t be significant once divided among FIFA’s six confederations.
FIFA president Gianni Infantino said in December: “Whatever FIFA does, [it] has to be global.”
FIFA has committed to not making “a single dollar of profit” from the tournament.
The governing body says it will reinvest the entire $1 billion into global club football.
The prize money has raised concerns about potential financial inequality in football.
FIFA chief Gianni Infantino is desperate for the Club World Cup to take off
PA
Critics worry the payments could disrupt competitive balance, particularly giving clubs like Chelsea and City more leeway with financial regulations.
By comparison, the 2022 men’s World Cup in Qatar offered $440 million in prize money.
The UEFA Champions League will pay a total of €2.47 billion ($2.66 billion) to clubs this season.
Hersi A. Said, Chairman of the African Club Association, told BBC Sport: “Africa is represented by four clubs. To start with, we are happy with four and we will push to get more clubs in the next editions.”
The tournament has faced criticism over player welfare concerns.