FIFA to award $1 billion in Club World Cup prize money, incentivizing big clubs such as Kylian Mbappe's Real Madrid, Erling Haaland's Manchester City, Cole Palmer's Chelsea FC

A record-breaking $1 billion is set to be awarded at the 2025 FIFA Club World Cup.

Details for how FIFA plan to fund the revamped 32-team tournament have not been released, but they have secured major sponsorship and broadcasting deals over the past few months ahead of the inaugural version of the competition.

London-based streaming service DAZN secured exclusive global broadcasting rights for the tournament in December, with a contract reportedly worth around $1 billion. Twenty-four of the 63 matches in the U.S. will also be televised by TNT Sports, with clubs like Inter Miami and Paris Saint-Germain being highlighted for American audiences.

FIFA has also secured sponsorship agreements with major brands such as Coca-Cola, Bank of America, Chinese electronics company Hisense, and Belgian brewer AB InBev.

The prize money being offered is significantly higher than that of the previous men's or women's FIFA World Cups.

The prize money will be split between participation fees and performance-based rewards. The Independent reported that $575 million will be allocated towards participation, while $465 million will be tied to sporting performance in the competition. However, the participation fees will not be distributed evenly among all clubs. Rather, funds will be distributed via confederation, with the recognition that equal payments would have different competitive impacts across the globe.

Manchester City and Chelsea, for example, could each receive $60-90 million from the tournament.

FIFA will also provide "solidarity payments" of at least $150 million to clubs not participating in the tournament, which comes from a planned overall tournament budget of $2 billion. The Independent added that there are hopes that the number could climb to $250 million.

Speaking in December, FIFA President Gianni Infantino said: "Whatever FIFA does, [it] has to be global."

FIFA has committed to not making "a single dollar of profit" from the tournament, with the governing body insisting they will reinvest the entire $1 billion into global club soccer. The prize money has, however, brought about concerns related to financial inequality in the professional game, with the likes of Chelsea and City being handed more financial freedom in negotiations.

The tournament will be hosted across 12 venues in 11 different U.S. cities, with the final being held at New Jersey’s MetLife Stadium, which will also stage the 2026 World Cup final.

The inaugural revamped tournament begins on June 14 and finishes on July 13.