FIFA Club World Cup In Jeopardy As Inter Register Huge Financial Gains

Written By Onyeka Daniel

In recent weeks, players have been speaking up about the packed fixture list for this season, especially when the newly introduced FIFA club World Cup is considered, in it new format to accommodate more teams.

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While it is set to kick off few weeks after the end of the 2024-25 season, giving players little time to rest for the 2025-26 season, it looks like the tournament will not be taking place after all, considering the recent reports on the matter. This is because clubs are reportedly threatening to pull out of the upcoming tournament.

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That is, FIFA does not deliver the promised €800 million in revenues, according to a report from Tuttosport. Previously, the Club World Cup had included just seven teams from across FIFA’s six confederations. One representing the winner each confederation’s top knockout competition.

Therefore, the winners of the Champions League would represent UEFA. They would be the only European club participating.But in the new format, it will be a 32-team competition.Teams from top European leagues gain entry via UEFA coefficient. From Serie A, Inter and Juventus are the teams set to participate in the competition, so far.

An additional major change is that the Club World Cup is now scheduled to take place at the end of the European club season, in the summer of 2025.Previously, the competition had happened in the winter. Naturally, a significant incentive for participation in the expanded Club World Cup is the revenues. The competition could of course hold sporting prestige.

But on the other hand, the additional fixtures at the end of an already long season have proved controversial. FIFA has offered big earnings to those clubs who participate.The total amount that the football governing body has put on the table is around €800 million. However, as of yet it is not clear how FIFA will generate this money to distribute to the participating clubs.

They’re is in talks with various broadcasters, but so far, these have not produced an agreement. In July, talks with Apple on the basis of a €500 million broadcasting deal stalled. A new report has it that there is a Saudi sponsor. However, Saudi energy giant Aramco have so far denied talks with FIFA. For Inter, they’ve now gotten some refreshing good news after the weekend defeat suffered in the derby.

The current Serie A champions have approved their balance sheet for the fiscal year ending in June 2024. The Nerazzurri released an official statement where they emphasize “increased revenues and sharply reduced losses” as the board of directors approve a draft of the budget, for final approval at the shareholders meeting.

The past few years have been turbulent ones for Inter on a financial level. The Nerazzurri have suffered significant losses in the wake of the COVID-19 pandemic beginning in 2020.Under previous owners Suning, Inter had to take drastic measures to curb these losses. This included a number of high profile player sales for large transfer fees.

And behind the scenes, they’ve been working diligently to increase commercial revenues. Corporate CEO Alessandro Antonello has been at the heart of these efforts. In May of this year, US fund Oaktree Capital took over as Inter owners from Suning. Oaktree took over after Suning defaulted on a massive loan that they had taken on from the fund in the spring of 2021.

That loan had been to cover operating expenses in the wake of the pandemic-related financial crisis. But the overall plan has not changed. Inter’s priority has been to get closer and closer to a balanced budget. Inter confirm in a statement that “The Board of Directors of FC Internazionale Milano S.p.A. has approved a draft of the budget for the fiscal year 2023-24, at the end of a meeting at the club’s headquarters.”

“The budget will now be submitted for approval at the club’s shareholders’ meeting. “The FC Internazionale Milano S.p.A. shareholders’ meeting will be convened at the end of October.” Inter’s statement stresses that “There has been a further sharp reduction in losses compared to the 2022-23 fiscal year.”

“There has been a drop from €85 million to €36 million in losses. A decrease of approximately €50 million.” “This decrease is, on the one hand, the result of an increase in revenues of approximately €48 million, to a total of €473 million,” Inter’s statement continues. “Due to the results of the team on a sporting level, which led to an increase in commercial revenues.”

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“At the same time, production costs remain virtually stable compared to the previous year, totalling €464.5 million. “The direct consequence of these trends is a net increase in the value of production of €9 million.” “Compared to a loss of €40 million in the previous fiscal year.” The statement further read.

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