New Delhi: As FIFA are all set to debut a new format for the upcoming Club World Cup, they face a new financial situation. The new format will see the competition in an expanded format. In the previous editions, the competition only included seven teams from FIFA’s six confederations. However, this competition will feature 32 teams, with the top teams in Europe coming through the UEFA coefficient.
One of the main reasons clubs have said yes to this format is the expansion of the revenue structure. The qualified clubs for the Club World Cup have urged FIFA to use the organization’s own reserves to fund the prize money, though the figures are yet to be confirmed. Most of the clubs are hoping for revenues close to £37m. However, there are debates about FIFA reaching into its treasury for this amount to be given to the rich clubs.
FIFA has yet to make any official announcement and is expected to take a stand in the upcoming months. The global football federation is expected to be backed by Saudi Arabia and its Petroleum refinery company, Aramco. The primary reason for this backing is Saudi Arabia’s relationship with FIFA’s president, Gianni Infantino. Of course, for their benefit, Saudi Arabia would commit only once they have the 20234 World Cup contracted to them.
Though the whole financial situation is behind the curtains, it will define how clubs view the Club World Cup. If FIFA can guarantee revenue in parallel with the Champions League, it could redraw football. Of course, Saudi Arabia’s financial backing of FIFA would mean that they will integrate into the football system like they have done with other sports like golf and Formula One.
Concerns about the Club World Cup planning
Currently, the Club World Cup is reshaping football less, but rather facing a backlash from European Leagues and players’ unions with threats of legal action just for the volume of matches that happen in a calendar year. These associations are complaining less about the expanded format of UEFA’s Champions League. That is mostly because the concerned stakeholders are involved in the inception and design of the competition.
Most of the grievances against FIFA are that they didn’t take the concerned parties into account when planning the new format of the competition. The competition is supposed to start on June 15th, 2025, in the US, but FIFA only announced the host cities in a meeting last Friday, nine months before the competition gets underway. The whole identity of sponsors, broadcasters, and prize money is still vague.
In a season that is already turning out to be a long one, the added fixtures haven’t gone down well with many. One of the main concerns now is that such a big competition doesn’t have broadcasters ready but rather pushes hard to gain attraction. Clubs are annoyed as the Friday meeting was the first time they were involved in what was supposed to be a strategic partnership.
FIFA believes that, ultimately, this competition will help the game of football go global and will be a catalyst to redistribute some of the wealth of Western European clubs. Of course, most believe that Infatimo comes from UEFA and has witnessed the Champions League up close. He wants FIFA to get some of the wealth that club football generates.
FIFA currently has the support of the big European clubs who have signed up for the competition. Some of the clubs are seeing it as a financial and political benefit. For these clubs, the increase in matches in the schedule is less concerning as they would get done with the pre-season matches in the year of the Club World Cup. Plus, the competition is just replacing an existing one with a few added games. The prize money is higher than the summer touring revenue.
🚨🏆 𝐁𝐑𝐄𝐀𝐊𝐈𝐍𝐆 | The new FIFA Club World Cup has problems… 😬
• Zero bids for TV coverage
• No stadiums confirmed
• Calendar/contract clashes
Some clubs are against the competition. High costs & lack of organisation is putting the tournament at risk! (@Gazzetta_it) pic.twitter.com/tod9COuRzu
— EuroFoot (@eurofootcom) September 26, 2024
Other clubs are only supporting the competition if it is executed well. The only concern now surrounding the media deals with the initial deal totalling £3.7b expectations from FIFA; the clubs now expect it to be £750m. The broadcasters do not view it as a profitable outcome. They have felt that such an increased amount of club football is nearing saturation.
Some clubs believe that Saudi Arabia’s Public Investment Fund could invest in FIFA’s streaming platform to solve the whole broadcasting debacle. For now, the widest acknowledgement is that the competition won’t be cancelled and that FIFA is taking football to the next level.
As FIFA prepares to launch a revamped version of the Club World Cup, there are concerns how the football body will fund the upcoming tournament. Football Sports News: Latest Cricket News, Cricket Live Score, Sports Breaking News from Sports Today
