This situation may affect participating clubs, including Benfica and FC Porto, which may receive less money than announced if an agreement is not reached. The lack of fiscal exemption may have an impact on the financial return of clubs, the future attractiveness of the competition and the preparation of the time.
FIFA is in conversations to try to ensure that the premiums of the next Club World Cup are totally free of tax, but negotiations are not easy and there is no consensus with all US states.
The competition, which will take place in the United States next summer, promises to offer quite attractive awards for participating clubs, including Benfica and FC Porto.
FIFA is trying to avoid this, looking for an agreement that allows clubs to receive the values in full, but so far has not yet been able to close understandings with all local authorities.
What is in question?
1. Lower net value of the awards
If FIFA cannot guarantee the total exemption of taxes, the participating clubs – including Benfica and FC Porto – will eventually receive less money than the announced value of the prizes. Part of this amount would be retained by the tax authorities of the US states where the games are played. That is, even if the awards are high, the real value that clubs take home can be much lower.
2. Lower financial return on investment
Participating in an international competition such as the Club World Cup implies costs – travel, accommodation, logistics, preparation, etc. If the awards are reduced due to taxes, the financial return may not completely compensate for the investment madeespecially for Portuguese clubs, which operate with more limited budgets compared to big leagues clubs.
3. Less attractiveness for the future
If the Club World Cup does not bring the expected gains, this can reduce the enthusiasm of Portuguese clubs in future appearancesboth at the level of motivation and sports management. The prospect of millionaire prizes is always an incentive, but if these values are strongly taxed, interest may decrease.
4. Impact on the preparation of the time
Both Benfica and FC Porto will have to adjust their pre-season to participate in this tournament. If the financial return is lower, This effort may seem less justifiedalthough international prestige remains an important factor.
