FIFA has officially announced that the prize pool for the newly expanded Club World Cup will be $1 billion, marking a historic investment aimed at elevating the competition's prestige and financial rewards. This significant financial boost reflects FIFA’s vision of making the tournament more globally competitive and commercially lucrative.

The Club World Cup, traditionally featuring only seven teams, will now expand to 32 clubs, making it a larger and more inclusive event similar to the FIFA World Cup for national teams. The expanded format is designed to allow the best-performing clubs from different continents to compete at a higher level, increasing global fan engagement.

FIFA has confirmed that the new format will debut in 2025 and will be hosted in the United States. This move is seen as part of FIFA's broader strategy to tap into the growing football market in North America, especially with the 2026 FIFA World Cup also set to take place in the U.S., Canada, and Mexico.

The $1 billion prize fund marks a significant increase compared to previous editions. While FIFA has not yet disclosed the specific breakdown of how the money will be distributed, it is expected that the winning club could receive a record-breaking cash prize, potentially exceeding the figures seen in previous Club World Cup tournaments.

In addition to the financial rewards, clubs that qualify will also benefit from increased global exposure, sponsorship opportunities, and higher television broadcasting rights revenue.

Despite the excitement surrounding the expanded tournament, some football stakeholders have expressed concerns about player workload and fixture congestion. Several club managers and players have raised issues about the intensity of modern football schedules, questioning whether another large-scale tournament is necessary.

Nonetheless, FIFA President Gianni Infantino has defended the decision, stating that the new format will "redefine club football on a global scale" and provide clubs from outside Europe with greater opportunities to compete at the highest level.

The inaugural edition of the expanded Club World Cup in 2025 is expected to feature clubs like Manchester City, Real Madrid, Bayern Munich, and Flamengo, among others.