Business

U.S. Named FIFA Club World Cup Host In Plan To Make Tournament Marquee Global Club Event

June 25, 2023

Topline

FIFA selected the U.S. as the host of the expanded Club World Cup in 2025—one of three massive soccer tournaments that will take place on U.S. soil in the next three years, as soccer’s governing body sets its eyes on an ambitious goal of revolutionizing international club soccer competitions by creating a marquee world event.

Real Madrid’s Karim Benzema holds up the FIFA Club World Cup trophy prior to a Spanish La Liga … [+] soccer match between Real Madrid and Elche CF at the Santiago Bernabeu stadium in Madrid, Spain, Wednesday, Feb. 15, 2023. The United States will host the Club World Cup in 2025, the first time the FIFA tournament will have 32 teams. Real Madrid, Manchester City and Chelsea already earned places as recent Champions League winners for the expanded tournament lineup that is set to test stadiums and operations one year before the 2026 World Cup. (AP Photo/Manu Fernandez, File)

Key Facts

FIFA announced the news Friday and attributed its decision to the U.S.’ “position as a proven leader in staging global events,” adding the Club World Cup would allow FIFA to better prepare for and deliver on the highly anticipated 2026 World Cup, which will take place one year later in the U.S., Canada and Mexico.

The U.S. is now set to host three large-scale soccer tournaments in the next three years, with the Copa América tournament in 2024, the Club World Cup in 2025 and the World Cup in 2026—a signifier of soccer’s increasing popularity in the states.

The expanded version of the Club World Cup, which will jump from seven to 32 participating teams, marks a commercial opportunity for FIFA in terms of testing broadcasting models and new sponsors, the Associated Press reported.

The cup’s competition format has yet to be finalized, but teams such as Real Madrid, Manchester City and Chelsea have qualified for a spot through recently winning the UEFA Champions League, a competition featuring Europe’s best soccer clubs.

The Seattle Sounders are the lone American team to qualify for the cup for the time through winning the 2022 CONCACAF Champions League—where they became the first Major League Soccer side to ever win North America’s main international club tournament—though one more domestic team will likely to be added due to the U.S. being the host nation.

Big Number

$5 million. That’s how much Chelsea, the winning team of the 2022 FIFA Club World Cup, secured in winnings, though it’s likely the 2025 winner will score a much bigger payday. In 2020, it was reported that FIFA sought $1 billion to launch an expanded Club World Cup, though it was only considering a 24-team tournament—rather than 32—at the time.

What To Watch For

The easiest way for clubs to qualify is through winning a champions league competition in the five main confederations of Africa, Asia, Europe, North America and South America within the span of 2021 to 2024, though some regions—notably Europe—will have several more teams qualify than just the UEFA Champions League winners, while the Oceania confederation will only have its top-ranked club over the four-year span qualify. Notably, European clubs, which include behemoths like Real Madrid and Manchester City, will likely have a massive advantage in the cup due to the money and world-class talent they possess. European teams have won the last 10 installments of the Club World Cup, which was previously held every year. A tournament will only be held once every four years under the new format.

Contra

The International Federation of Professional Footballers, a coalition of players’ unions, and the World Leagues Forum, an association representing several soccer leagues, criticized the initial announcement of the 2025 Club World Cup, citing concerns that it would clash with the existing calendar of other soccer fixtures and not allow players time to recover for or from other competitions.

Key Background

The Club World Cup’s expansion to 32 teams was first pitched in 2016. The new version of the competition was set to launch in 2021 but was canceled due to the Covid-19 pandemic. The last installment of the Club World Cup using its old format took place early this year in a seven-team tournament that was won by La Liga club Real Madrid in a final with Saudi Arabian club Al-Hilal.