FootBiz newsletter #62: FIFA provides more details on $2bn Club World Cup

Well, credit where it is due to FIFA.

Not only have they managed to completely dominate today’s newsletter (the real prize!) but they also have answered some more of the outstanding questions over the Club World Cup.

The tournament budget, prize money and a raft of other details lie below - though one friend of FootBiz in Mexico has asked once again how Pachuca and León are both allowed to compete despite having the same owner.

We also have news on next summer’s World Cup, and why we may see a sky full of stars.

Table of Contents

• Club World Cup gets $1bn prize fund

• From plaintiffs to bedfellows

• Lyon coach gets nine-month(!) ban

• France next for independent regulator?

• DAZN sub-license US Club World Cup rights

• One door opens…

• Brighton post £73m profit

• Newcastle cut losses to £11m

• Everton shareholders lose 95% of value

• Transfer Whar chest

• British bid for 2035 Women’s World Cup

Club World Cup gets $1bn prize fund

The FIFA Council met yesterday over video and handed us a number of headlines to get stuck into.

Chief among them was the announcement that the prize fund for clubs participating in FIFA’s Club World Cup this summer will total $1bn.

Gianni Infantino had previously promised that each team would pick up at least $50m for taking part in the newly expanded 32-team competition, set to be hosted by the United States.

That would suggest a prize fund of $1.6bn but with FIFA struggling to find commercial partners, $1bn is the number coming out of world football’s governing body this week.

The tournament’s total budget is $2bn, of which $850m will be spent on costs, $1bn on prize money for those involved and an additional $150m will go to non-participating clubs as ‘solidarity payments’.

Rival clubs had pointed out that handing huge sums to clubs taking part in the CWC might distort competition, as is already happening in European leagues off the back of increased UEFA competition revenues, and so FIFA have attempted to soften this effect.

How far $150m goes once you’ve divided it up among the different confederations and territories is another question entirely, but we do know a little more about the distribution of the prize money for those taking part in the tournament this summer.

Of the headline number, the $1bn prize fund, $465m will be split based on sporting performance and $575m will be divided among the clubs for participating.

That split will not be even, however, and is expected to be adjusted for regionality on the basis that handing Auckland City or Wydad Casablanca $50m would distort their competitions greatly whereas for Chelsea or Manchester City it would provide only a tiny financial boost.

From plaintiffs to bedfellows

The truce between FIFA and Relevent Sports, the American events and promotion company that until last May were taking legal action against the world governing body over their refusal to permit competitive matches to be played in overseas territories, appears to have softened further into a far more cozy relationship.

FootBiz has learned that Relevent have been given a place on the working group established by FIFA to look at potential changes to its Regulations Governing International Matches, specifically whether the rules should be changed to sanction games being moved abroad. La Liga and Serie A have been open about their desire to stage some of their league fixtures in the United States, but the Premier League and EFL are against the idea despite a number of their clubs being in favour.

FIFA's rules currently state that official league games must be played within the territory of the respective member association, but that position is currently being reviewed. In announcing the creation of the working group last October FIFA said that it would involve "one representative from a match organiser," but did not name Relevent.

The rest of the working group is comprised of one representative from each Confederation, two from national associations and two each from the European Clubs' Association, international players' union FIFPRO and the World League's Association.

Relevent's involvement provides an indication that FIFA are ready to alter their regulations in a move that would be welcomed by the biggest clubs, particularly Real Madrid, Barcelona and Juventus, who have concluded that increasing revenues overseas is the best way of bridging the huge commercial advantage enjoyed by the Premier League. The New York-based company set up by Miami Dolphins' owner Stephen Ross have grown increasingly influential in football since they began organising pre-season tours of the United States for European clubs two decades ago.

Relevent launched an anti-trust lawsuit against FIFA and US Soccer, who are against staging competitive matches from foreign leagues on American soil on the grounds they would threaten MLS, in 2019 but removed FIFA as defendants last year. The case against US Soccer still stands.

Relevent are also close to UEFA, and last month entered into exclusive negotiations to sell global commercial and television rights for all UEFA competitions from 2027 to 2033. This agreement has been widely interpreted as increasing the chances of Champions League matches being moved to the USA during the period of that contract.

Lyon coach gets nine-month(!) ban

Olympique Lyonnais coach Paulo Fonseca faces an uncertain future after the French footballing authorities banned him for nine months for aggressive behaviour towards a referee.

Fonseca screamed in the face of referee Benoit Millot, making physical contact with the official at the end of Lyon’s 2-1 win over Brest last Sunday.

The Portuguese coach apologised in his post-match press conference, but the LFP have taken unprecedented measures after an investigation and Fonseca is now banned from the dressing room before matches, at half time, and also from the touchline.

Whether his position as head coach is tenable given such restrictions remains to be seen but Lyon’s season hangs in the balance.

Amid financial struggles, a provisional relegation handed down by France’s football regulator and an ongoing feud between owner John Textor and Paris Saint-Germain’s Nasser al-Khelaifi, Lyon desperately need the revenue boost that comes with qualifying for the Champions League. Currently they are four points off fourth, which would mean a Champions League qualification playoff, and seven points from third place and direct passage to the league phase.

And what a day to find out…

Marseille president Pablo Longoria received a 15-match ban for accusing referees of corruption in an angry tirade that he later apologised for.

Lyon, for their part, have said they will appeal Fonseca’s ban.

France next for independent regulator?

As the Premier League continues to throw sticks at the bicycle wheels of attempts to introduce an independent regulator to English football, two French lawmakers have floated a similar proposal for L’Hexagone in the wake of Ligue 1’s current crisis.

Senators Michel Savin and Laurent Lafon are planning to table new legislation pertaining to the “organisation, management, and financing of professional sport” with the goal of “providing a renewed framework” for French football.

The broader trend of more regulation in football looks set to continue, with its own governing bodies proven to be incapable of balancing all their responsibilities.

World Cup halftime show

Gianni Infantino spoke via videolink with sponsors in Dallas this week, where FIFA have hosted a number of commercial and media partners at a convention.

The FIFA president also used the opportunity to make a couple of announcements about the World Cup 2026 final.

“I can confirm the first ever half-time show at a FIFA World Cup final in New York/New Jersey, in association with Global Citizen. This will be a historic moment for the FIFA World Cup and a show befitting the biggest sporting event in the world.

“We also spoke about how FIFA will takeover Times Square for the final weekend of the FIFA World Cup in 2026, during both the bronze final match and final.”

Coldplay frontman Chris Martin is helping pull the halftime show together, taking on the role occupied by Jay-Z and his agency Roc Nation in organising the Super Bowl equivalent on behalf of the NFL.

Pitbull seems to perform at every FIFA event, so get your money on Mr Worldwide making an appearance. Uno, dos, tres.

DAZN sub-license US Club World Cup rights

When DAZN and FIFA announced their global streaming deal for the Club World Cup this summer, the press release was pretty clear that the London-based streamer would be sub-licensing some games in key territories.

Having already announced a deal with Televisa to broadcast CWC games Stateside in the Spanish language, DAZN this week announced a similar arrangement with TNT’s stable of channels in the USA to show English-language games during the tournament.

Penetration of the US market is a key objective of both FIFA and DAZN with the tournament taking place on American soil and so ensuring that TNT, TBS and truTV will televise 24 of the tournament’s 63 matches begins to maximise visibility.

This step into football represents a further realignment of the sports strategy at Warners Bros. Discovery (WBD).

Their Inside the NBA output on TNT was considered the pinnacle of basketball coverage in America but WBD and the NBA surprisingly ended their 36-year relationship last year, while TNT will license Inside the NBA to ESPN when the new TV deal begins next season.

Speaking this week, CEO David Zaslav said not renewing live NBA game rights has allowed the TNT Sports parent to rebuild its sports rights portfolio at a much lower cost base, broadening the sports they cover.

“Our job is to make sure we have enough quality sports so that we’re creating real value for the distributors. And it turns out not doing the NBA was a great decision for us,” Zaslav said.

“We picked up the College Football Playoff, we picked up NASCAR in the summer, we have a great lineup globally, and we saved a huge amount of money.”

One door opens…

Just as The Guardian reveals that Manchester United are considering closing their London office, another one of the north-west’s powerhouse clubs opened an office in the capital on Monday.

Yes, Burnley are looking to open up some new access to commercial partners by opening an outpost in the Big Smoke.

With an American owner, Alan Pace, and minority owner J.J. Watt attempting to drum up interest across the pond, the hope is that Burnley can return to the Premier League this summer and attract more sponsors.

Hopefully they don’t fall into the same trap as United did and sign a 10-year lease on their office space…

Brighton post £73m profit

Premier League clubs continue to post eye-watering losses with very few exceptions.

But one of those very few is Brighton & Hove Albion, who thanks to a generous donation of nearly a quarter of a billion pounds from Chelsea are posting incredible profits once again.

The pre-tax profit of £73m comes on record turnover of £222m. In 2022/23, the club made £123m in profit principally off the back of player sales (to Chelsea) but Albion invested a lot more in their squad last summer, buying Yakuba Minteh, Georginio Rutter, Mats Wieffer, Brajan Gruda and Matt O’Riley for large sums.

Chief executive Paul Barber has said that the club is unlikely to ever surpass the £40m fee paid for Rutter as it gives them little “headroom” but with their recruitment being steered by Justin Said at Jamestown Analytics they can have confidence in lower-priced buys.

The only question mark over Brighton is their significant loans to owner Tony Bloom, totalling nearly £400m, with Premier League rules now forced to include shareholder loans as associated party transactions. The club is known to be relaxed about the situation.

Newcastle cut losses to £11m

Newcastle United posted an £11.1m loss for the financial year ending June 30, 2024, despite achieving a record £320.3m revenue, a 28% increase from last year (£250m). This marks a significant improvement from the previous £71.8 million loss, helping the club comply with PSR regulations.

"We are committed to sustainable success and have started 2025 in a strong position," said CEO Darren Eales, who has impressed onlookers since arriving from Atlanta United.

A return to the UEFA Champions League was a major factor in this revenue growth, but the club also reported a £70 million profit from transfer activity, driven by the sales of Allan Saint-Maximin, Elliot Anderson, and Yankuba Minteh.

Anderson and Minteh were both deals slightly forced upon the club by their PSR position.

Additionally, commercial revenue surged by 90%, while match-day income rose 32% compared to the 2022/23 season.

Everton shareholders lose 95% of value

There is unhappiness on Merseyside as Everton’s new owners, The Friedkin Group, declined to meet minority shareholders in the club who were rightly concerned about a near-total collapse in value of their stakes.

As reported by The Times, there are around 1500 smaller shareholders who owned 5% of the club under Farhad Moshiri’s reign, with shares changing hands earlier this winter for as much as £3,400.

TFG’s takeover of the club increased the amount of shares in the club more than tenfold, however, and reduced the value of those minority shares by as much as 95%.

Seeking an audience with TFG, lifelong fan and local philanthropist Ian Kilbride saw his request turned down by the club.

“I and others are now left with the feeling that more than 1,500 Evertonians, who are actually shareholders, are not worth a 30-minute meeting in the eyes of TFG,” Kilbride told The Times. “This is not a reasonable, sensible or, given the way the shareholder value has been destroyed, [an] honourable way to behave.”

Transfer Whar chest

Real Madrid have scouted Crystal Palace midfielder Adam Wharton since his return from injury, according to the Daily Mail, with the Eagles facing a battle to hold on to the young playmaker this summer.

Wharton only moved to Selhurst Park last January but immediately took to Premier League football. A composed, deep-lying passer with a terrific left foot, Manchester City were expected to be a bidder until Wharton’s injury this winter which forced City into a move for FC Porto’s Nico Gonzalez.

Madrid and the Premier League’s elite clubs are all keeping an eye on Wharton, leaving Palace to try and convince him that his career would be better served by another year in red and blue.

Marc Guehi and Eberechi Eze were originally expected to be the major departures this summer, though Jean-Philippe Mateta’s contract situation may dictate that he is sold too or handed a bumper extension.

British bid for 2035 Women’s World Cup

A joint Great British bid for the women’s World Cup in 2035, first reported by The Times, is likely to face a direct battle with South Africa as well as the usual diplomatic struggles.

FIFA has asked for expressions of interest from potential hosts of the 2031 and 2035 World Cups within the next month ahead of a vote at next year’s FIFA congress.

Despite reforms in the wake of the Blatter-era corruption scandal insisting that World Cup bid processes should be held separately, FIFA has decided to run the 2031 and 2035 bids in parallel.

The United States is favourite to host in 2031 after missing out to Brazil in hosting the 2027 tournament. South Africa pulled out of the 2027 race and is expected to be the main rival to a joint British bid comprised of England, Scotland, Wales and Northern Ireland.

Having failed in two bids for the men’s World Cup in recent years, the British associations have shown themselves to be gluttons for punishment. The English FA in particular is unpopular among the wider footballing community, as evidenced by their bid receiving just one vote from another delegate during their last attempt.