FIFA, world football's governing body, announced details of the 2025 Club World Cup's 1-billion-US-dollar prize money on Wednesday, with the tournament champion set to receive up to 125 million dollars.

Trophy for the restructured FIFA Club World Cup. (Courtesy of FIFA)

The inaugural 32-team FIFA Club World Cup will take place in the United States from June to July 2025.

FIFA stated its new flagship tournament is projected to generate 2 billion dollars in revenue, with 1 billion dollars allocated to participating clubs and an additional 250 million dollars going to a global solidarity fund for club football.

"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 125 million U.S. dollars foreseen for the winners," said FIFA President Gianni Infantino.

A 525-million-dollar share will be divided among all participating teams, while the remaining 475 million dollars will be distributed based on tournament performance.

The 32 clubs will receive varying participation fees determined by a ranking system incorporating sporting and commercial criteria. Top European clubs could earn up to 38.19 million dollars just for participating, while Oceania's Auckland City would receive the minimum 3.58 million dollars.

Infantino also claimed that all event proceeds would be reinvested in club football worldwide.