FIFA Club World Cup: the $1 billion tournament

FIFA described the Club World Cup as "the ultimate expression of soccer." And it’s easy to see why. Not only does it have a global reach—featuring 32 of the best teams from six continents (all except Antarctica)—but it also involves significant elements like the prize money allocated to each participant, as well as the revenue generated from television rights and sponsorships, among other factors.

Ahead of the Club World Cup’s new-format edition, FIFA President Gianni Infantino disclosed the expected revenues and the funds that will be distributed to participating teams and the sport overall, promising that the organization will not profit from the event.

"The FIFA Club World Cup will be the ultimate expression of club soccer and an energetic demonstration of solidarity that will benefit all clubs in general like no other competition," Infantino said in March during a FIFA assembly.

"All revenues generated by the competition will be shared among the participating clubs and, as a form of solidarity, to club soccer around the world. FIFA will not keep a single cent. FIFA's reserves, which are kept for the development of world soccer, will not be touched," he added.

The $1 billion tournament

FIFA projects that the Club World Cup will generate $2 billion in revenue, which will be distributed equally—$1 billion to the participating clubs and another $1 billion to soccer development, primarily for training. As Infantino pointed out, no other soccer tournament has ever awarded such a large sum to its members.

"The distribution model of the FIFA Club World Cup reflects the pinnacle of club football and represents the biggest-ever prize money for a football tournament comprising a seven-match group stage and playoff format," the FIFA president said.

Money distribution

Regarding the $1 billion allocated to the teams competing in the Club World Cup, FIFA split the amount into two parts: $525 million for participation and $475 million based on performance.

Not all participants will earn the same amount just for playing in the Club World Cup; it will depend on their confederation. For example, UEFA teams—such as Real Madrid and Atlético Madrid (Spain), Chelsea and Manchester City (England), Bayern Munich and Borussia Dortmund (Germany), Paris Saint-Germain (France), Inter Milan and Juventus (Italy), Benfica and Porto (Portugal), and Salzburg (Austria)—will receive between $12.81 million and $38.19 million, depending on their sporting rankings and commercial factors, according to FIFA.

Each of the teams representing CONMEBOL (South America)—Palmeiras, Flamengo, Fluminense, and Botafogo (Brazil), and River Plate and Boca Juniors (Argentina)—will receive at least $15.21 million.

The teams representing CONCACAF (North America and the Caribbean)—Monterrey and Pachuca (Mexico), Inter Miami and Seattle Sounders (USA), and one yet to be decided (either Los Angeles FC from the USA or Club América from Mexico)—as well as the CAF (Africa) teams—Al Ahly (Egypt), Wydad Casablanca (Morocco), Espérance de Tunis (Tunisia), and Mamelodi Sundowns (South Africa)—and the AFC (Asia) teams—Al Hilal (Saudi Arabia), Urawa Red Diamonds (Japan), Al Ain (United Arab Emirates), and Ulsan Hyundai (South Korea)—will each receive $9.55 million for participating.

Auckland City (New Zealand), the sole representative of the OFC (Oceania), will receive at least $3.58 million.

On the other hand, prize money will also be awarded based on performance. In the group stage, each win earns $2 million, while a draw is worth $1 million.

Reaching the round of 16 will earn teams $7.5 million, while advancing to the quarterfinals comes with a $13.1 million prize. Teams that make it to the semifinals will receive $21 million.

Losing in the final won’t be bad news, as the runner-up in the FIFA Club World Cup will receive $30 million. The winner, in addition to the trophy, will earn a $40 million prize.