The Club World Cup was an annual tournament featuring winners of the six continental club competitions as well as the host nation’s domestic league champions till FIFA turned it inside out. The new format starting from 2025 is an expanded 32-team tournament played over a month with teams supposed to be chosen either a ranking pathway based on performances over a four-year period or by winning continental titles between 2021 and 2024. This new version of Club World Cup, to be played between June 14 and July 13 in the USA, is now graduated from an annual tournament to one to be played every four years.
Ambitious? Yes!
Revenue generating? Yes!
Exciting to watch? Seemingly yes, because it contains the best teams, best players across top club teams from FIFA’s different Confederations!
FIFA Club World Cup 2025 ticks almost all the boxes on paper and it can be assumed to become a big-ticket tournament. With barely there months to go, there are concerns coming from big clubs about the schedule, the transfer window etc. On the other hand, it seems to be a huge opportunity for smaller clubs like Auckland FC to compete on the global stage and get handsomely rewarded for that.
In this blog, we will try to understand the two of the important facets of the tournament, prize money and broadcasting.
Rewards
For the new version of Club World Cup, FIFA is reportedly targeting a revenue of $2.5bn. Now that is a mighty jump over the previous editions of the same tournament. The distribution model for the 2025 edition with a total prize money pot: $1bn will comprise of the following pillars:
- Sporting performance pillar of $475mn.
- Participation pillar of $525mn.
Sporting Performance Pillar breakdown:
- Group Stage (three matches): $2.0mn per win & $1.0mn per draw per club.
- Round of 16: + $7.5mn.
- Quarter-Final: + $13.125mn.
- Semi-Final: + $21.0mn.
- Finalist: +$30.0mn.
- Winner: + $40.0mn.
Participation Pillar breakdown:
- Europe: $12.81mn – $38.19mn, determined by a ranking based on sporting and commercial criteria.
- South America: $15.21mn.
- North, Central American & Caribbean: $9.55mn.
- Asia: $9.55mn.
- Africa: $9.55mn.
- Oceania: $3.58mn.
As explained by FIFA President Gianni Infantino, the distribution model of the FIFA Club World Cup represents the biggest-ever prize money for a football tournament comprising a seven-match group stage and playoff format with a potential payout of $125mn for the winners.
Broadcasting
After a prolonged period of discussions and uncertainty, FIFA finally announced a global $1bn broadcast deal with DAZN for the 2025 Club World Cup. The agreement between both parties’ further states that all 63 matches will be made free-to-air across the globe! In a logical world, broadcast partners attempt to recoup majority of their money spent in acquiring rights through subscriptions. In such a condition, free-to-air is a big, bold move. Matters become more complicated as we look at the financials of DAZN. In their 2022 published accounts, they announced operating losses of $1bn on a $3.2bn revenue generated. This also could imply two things:
- FIFA desperately wants to make the new Club World Cup format more popular and therefore acquire viewers by providing free viewing.
- For DAZN, it is about attracting as many customers as they can and create a strong bouquet of properties on board.
FIFA president Infantino has claimed that the tournament is going to be viewed by five billion people. The agreement with DAZN comes after a stalled discussion with Apple over the media rights. Interestingly, Apple had tabled a $1bn bid but was reportedly turned down as FIFA expected more.
In Conclusion
The Club World Cup 2025, played in 12 stadiums across 11 cities in the USA, can also be the prelude to the big FIFA World Cup 2026 as a test of preparedness for the biggest event in the world. The tournament also has its own share of controversies and dissents. Players associations, which fear mental and physical breakdowns amid an already overcrowded calendar, have challenged FIFA, which is yet to be resolved. The selection of Inter Miami CF also has raised many eyebrows.
The tournament is FIFA’s big bet on creating a coveted property. On the face of it, the competition has its own benefits and only time will tell how it is taken by the fans.
