Chelsea and Manchester City could be in line to earn £97m in this year’s Club World Cup

The first edition of the new tournament begins in June and runs until 13 July

The tournament trophy was unveiled at the White House earlier this month (AFP via Getty Images)

Fifa has confirmed that the winner of this summer’s new Club World Cup could earn up to $125m (£97m), with the competition’s overall prize pot totalling $1bn (£775m).

The money awarded to each team is weighted through a combination of sporting and commercial criteria, with European clubs earning more than teams from elsewhere in the world. £407m will be divided between all the clubs involved, with a further £368m awarded based on success in the competition.

The top-ranked European side will receive around £30m alone just for participating, with the continent’s main clubs – including Real Madrid and Bayern Munich – earning around £40m if they qualify from the group stage.

If either Chelsea or Manchester City went on to win the competition, they could earn £97m, which is by far the largest prize money of its kind in club football.

In a statement, Fifa president Gianni Infantino said: “The distribution model of the Fifa Club World Cup reflects the pinnacle of club football and represents the biggest-ever prize money for a football tournament comprising a seven-match group stage and playoff format with a potential payout of $125m foreseen for the winners.

“In addition to the prize money for the participating teams, there is an unprecedented solidarity investment programme where we have a target of an additional $250m being provided to club football across the world.

“Not only that, but Fifa will neither retain any funding for this tournament, as all revenues will be distributed to club football, nor will it touch Fifa’s reserves, which are set aside for global football development through the 211 Fifa Member Associations,” he added.

The expanded tournament features teams including PSG and Inter Milan, with European clubs qualifying based on Champions League performances over the past four seasons.

In other confederations, South American giants Boca Juniors, River Plate, Fuminense and Flamengo have also qualified, alongside clubs including Al Ahly, Auckland City and Lionel Messi’s Inter Miami.

The tournament takes places in the USA and begins with the group stage on 15 June, with the final held at the MetLife Stadium in New Jersey on 13 July.