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FIFA TO DISTRIBUTE OVER $1 BILLION AS EUROPE NEARS CLUB WORLD CUP AGREEMENT

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2 days ago

FIFA to Distribute Over $1 Billion as Europe Nears Club World Cup Agreement


FIFA is set to allocate over $1 billion in revenue to clubs participating in the upcoming Club World Cup, as negotiations between the global football body and the European Club Association (ECA) near completion. The ECA, which represents top European clubs such as Chelsea, Manchester City, Bayern Munich, and Juventus, has been actively involved in securing a significant financial package for participating teams. According to multiple sources, FIFA expects this to be the most lucrative club tournament in history, with revenue primarily driven by an exclusive $1 billion global TV rights deal with sports streaming platform DAZN, signed in December. The inaugural edition of the expanded Club World Cup will take place in the United States from June 14 to July 13, featuring 32 teams, including 12 from Europe. Each club will earn participation fees for entering the tournament, along with performance-based rewards as they progress through the stages.

In addition to direct payments to competing teams, FIFA and the ECA are discussing solidarity payments for clubs that are not participating, ensuring financial benefits extend beyond the elite teams. While details on distribution remain unclear, FIFA has pledged to reinvest the tournament’s entire revenue into global club football. However, European clubs are expected to receive a larger share due to their significant contribution to the competition’s commercial appeal and the fact that they will forgo lucrative pre-season tours to participate. Notably, Real Madrid is absent from ECA’s negotiations due to their continued support for the European Super League. The ECA has committed to backing the Club World Cup until at least 2030, following a memorandum of understanding signed in 2023. Despite ongoing discussions, FIFA and the ECA have not made official statements regarding the final agreement.

Beyond Europe, there is growing interest in the financial aspects of the tournament, particularly from Africa, Asia, and the Americas. The Confederation of African Football (CAF) has been advocating for fair revenue distribution, with its affiliated African Club Association (ACA) pushing for increased representation in future editions. Currently, Africa will be represented by four clubs—Al Ahly, Wydad AC, ES Tunis, and Mamelodi Sundowns. ACA chairman Hersi A. Said expressed satisfaction with Africa’s initial participation but emphasized the need for greater clarity on revenue sharing and TV rights. Clubs from North America and Asia have also voiced support for the competition, despite having limited information about financial benefits. FIFA President Gianni Infantino reiterated FIFA’s commitment to global inclusion, stating that the Club World Cup is designed to provide opportunities for clubs worldwide. A FIFA Council meeting is scheduled to provide further updates on the tournament, which will be hosted in 12 stadiums across 11 U.S. cities.



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