According to reports, the 2025 Club World Cup is scheduled to take place in the USA from June 15 to July 13. For the first time in the tournament’s history, 32 teams will participate.

As reported by the British newspaper The Guardian, FIFA is engaged in complex negotiations with US authorities due to its failure to secure tax exemptions for the 32 participating clubs.

Billions in Prizes Under Heavy Taxation

FIFA previously announced in March that the total prize money for the tournament would exceed $1 billion USD, with the winner receiving up to $125.8 million. However, the lack of clear tax agreements may force clubs to pay tens of millions in taxes to the US government, in addition to taxes in their home countries.

While FIFA secured tax exemptions for the 2026 World Cup in the USA—including waivers on municipal, state, and ticket sales taxes—it has yet to achieve similar exemptions for the Club World Cup due to tight scheduling.

FIFA faces another complication: varying state tax rates across the USA, which could lead to financial disparities among teams depending on where their matches are held. For example, Florida (hosting matches in Miami and Orlando) imposes no state income tax, while most other host cities do, with rates ranging from 3% in Pennsylvania to 7% in California.