FIFA has announced a $1billion prize fund for the 2025 Club World Cup.

World football’s governing body has not yet confirmed how the money will be distributed between the 32 participating teams, but explained a “solidarity” pot for clubs outside the competition would also be introduced. Concerns had been raised that excessive prize money exclusively for teams in the tournament could distort domestic leagues.

FIFA’s budget anticipates there will be $2bn in revenue from the competition, and president Gianni Infantino stated that “all revenue generated by the tournament will be distributed to the participating clubs and via club solidarity across the world as FIFA will not keep a single dollar”.

The Athletic reported that in a meeting with all 32 clubs in December, FIFA made clear that the money will not be shared equally, but instead split between participation and success within the tournament, while also pledging that the TV revenue will be split between the clubs and solidarity payments to the broader club game.

The European Clubs’ Association (ECA), a lobbying group that represents the interests of Europe’s leading clubs, was expected to fight to ensure that the European clubs, such as Paris Saint-Germain, Bayern Munich, Chelsea, Manchester City, Inter and Real Madrid, are appropriately paid for driving interest to the tournament, but with other continents also set to argue for their fair share.

In contrast to prize money for domestic and international tournaments elsewhere, FIFA provided $440m for the 2022 Men’s World Cup, and $110m for the 2023 Women’s World Cup. UEFA, meanwhile, will distribute $2.66bn to the 36 teams competing in the 2024-25 Champions League.

In December, world football’s governing body announced a $1bn broadcast deal with DAZN to show all 63 games from the 2025 tournament on its platform.

FIFA had previously been in talks with Apple TV over an exclusive broadcast agreement, but a deal could not be found and negotiations broke down last year. This led to Infantino calling an emergency meeting with TV executives in an attempt to secure a deal.

It was confirmed on Wednesday TNT Sports will broadcast 24 matches from this summer’s competition – including group and knockout stage games, plus the final on July 13 – on its cable networks TNT, TBS and truTV after reaching an agreement with DAZN.

The inaugural Club World Cup takes place in the United States between June 14 and July 13.

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(Chandan Khanna/AFP via Getty Images)