Club World Cup: £97m in prize money available for Man City and Chelsea

Manchester City and Chelsea are in line to receive as much as £97 million in prize money from this year's Club World Cup. The total prize pool for the tournament is £775 million, which will be distributed among the 32 participating teams based on various factors. Of this, £407 million will be allocated to all participating clubs, while £368 million will be awarded based on the teams' performance in the competition.

In comparison, last season's Premier League prize money ranged from £175.9 million for champions Manchester City to £109.7 million for bottom-placed Sheffield United. The Club World Cup participation bonuses are weighted according to sporting and commercial standards, meaning that European clubs participating in the competition will receive higher bonuses than teams from other continents.

According to FIFA's metrics, the highest-ranked European team will receive £29.6 million just for participating. If they win all of their group stage matches and ultimately win the entire tournament, they will receive the maximum prize money, estimated at £97 million. A group stage win will earn a team £1.5 million, reaching the round of 16 will earn £5.8 million, reaching the quarter-finals will earn £10.2 million, reaching the semi-finals will earn £16.3 million, and winning the final will earn £31 million.

With Manchester City and Chelsea qualifying by virtue of their recent Champions League titles, the two Premier League teams have the potential to earn the highest prize money in club football history in this seven-match tournament. The expanded Club World Cup will be held in the United States from June 15 to July 13. Previously an annual seven-team competition, it will now feature 32 clubs and be held every four years.

FIFA President Gianni Infantino said: "FIFA’s Club World Cup distribution model reflects the peak level of club football." Teams from the six continental confederations will participate: Asia (AFC), Africa (CAF), North and Central America (CONCACAF), South America (CONMEBOL), Oceania (OFC), and Europe (UEFA). European teams have 12 slots, the most of any confederation, and these slots are determined by clubs' Champions League performance over the past four seasons.

With only two clubs from each country eligible to qualify, 2022 Champions League finalists Liverpool missed out, but 2021 winners Chelsea and 2023 winners Manchester City qualified. Other European teams qualified through the UEFA ranking system, which is determined by clubs' performance over the past four seasons. The success of the tournament will depend largely on clubs such as Chelsea, Manchester City, Real Madrid, and Bayern Munich. These clubs have negotiated considerable sums to participate – they should receive at least £40 million if they progress from the group stage, with as much as £97 million available for winning the competition. This income is comparable to what is earned from participating in the Champions League.

However, not all clubs are created equal. Smaller European clubs like Red Bull Salzburg will only receive around £15 million if they progress from the group stage. South American clubs like Boca Juniors, River Plate, and Flamengo are expected to receive similar amounts. Auckland City from North America, Asia, Africa and Oceania will receive even less. Of course, the biggest clubs will argue that they are already stretched in terms of the football calendar and will miss out on pre-season income, but the tournament now looks extremely lucrative for those involved.

These revenues will give Chelsea and Manchester City more room to comply with profitability and sustainability rules, but they could distort competition with smaller leagues in Europe and beyond, just as participation in the Champions League gives participants a huge financial advantage. FIFA says that the tournament will help develop football outside of Europe and distribute funds to clubs beyond the traditional elite. But the elite clubs have already used their importance in negotiations to secure a larger share of the total prize money.