He Club World Cup not changing the budgets of FIFAparticularly the budget cycle agreed by the highest body for the cycle from 2023 to 2026. The new club tournament where there will be 32 clubs and two of them are Spanish (Real Madrid and Atlético de Madrid) is self-financing. At MD we had access to the basic economic principles of this tournament that FIFA is launching and sending to all national associations.
Economic principles based on five pillars. The first is that the highest body considers it a “neutral tournament from a financial point of view”, indicating that all the income generated by the competition will fully cover the costs incurred in holding the tournament with all distributions made . FIFA’s reserves, which are kept for the development of world football, cannot be moved.
The second happens because “no revenue goes to FIFA: 100% reinvestment in club football.” All proceeds will be used exclusively for club football and to finance the running, distribution and unity costs of the tournament. For example, the audiovisual income known last Wednesday and for which DAZN will pay 1 billion euros for the audiovisual exclusivity of the tournament.
Regarding the ‘Prize Money’ section, FIFA announced that participating clubs will benefit from an attractive distribution model that will recognize their contribution and reward their sporting performance. It is said that just for joining each club will receive 50 million euros. And the next and fourth principle includes the concept of ‘Solidarity with clubs’, where for the first time a solidarity model will be launched where the net commercial income will be redistributed to club football around the world. The model is calibrated based on the ultimate commercial success of the contest.
Finally, FIFA highlights the ‘Optimization of expenditure’ where the highest body in world football, due to its status as the organizer of the two major competitions in the United States, will benefit greatly from economies of scale for contracting products and services.
Source: La Verdad
I’m Rose Herman and I work as an author for Today Times Live. My expertise lies in writing about sports, a passion of mine that has been with me since childhood. As part of my job, I provide comprehensive coverage on everything from football to tennis to golf.
