Claudius Schafer, the newly appointed president of European Leagues, has expressed deep concerns about the sustainability of domestic football competitions amid the growing financial influence of international tournaments.
Schafer’s remarks come in response to FIFA’s recent announcement that the upcoming 32-team Club World Cup, set to take place in the United States this summer, will feature a staggering $1 billion (£780 million) in prize money. With performance-based payouts, European clubs—12 of which are participating—are poised to be the primary beneficiaries. Betting odds heavily favor nine European teams to progress deep into the tournament, with Austria’s Red Bull Salzburg standing out as the only side not widely expected to reach the knockout stage.
While FIFA has pledged $200 million (£155 million) in solidarity payments to European clubs that are not competing in the tournament, details on how these funds will be distributed remain unclear. Schafer, however, suggested that such payments do little to address the growing financial gap between clubs.
“The money being awarded to participating teams is on a massive scale,” Schafer stated. “If a club from the Austrian league, for example, receives $50 million, the impact on their domestic competition is enormous.”
He emphasized that maintaining a competitive balance within leagues is crucial, particularly for smaller and mid-tier domestic competitions that struggle to keep pace with wealthier clubs.
“Solidarity payments have been discussed, but in reality, they represent only a fraction of what a club can earn from international competitions,” he added. “If this trend continues, I genuinely fear for the future of domestic leagues.”
The issue of financial disparity in European football is already well-documented. In England, Manchester City recently secured a record-breaking fourth consecutive Premier League title. In Spain, La Liga has remained dominated by Real Madrid, Barcelona, and Atletico Madrid for two decades, with no other club winning since 2004. Italy’s Serie A was monopolized by Juventus for nine straight seasons until 2020, while Bayern Munich is on track to reclaim the Bundesliga title after Bayer Leverkusen briefly interrupted their dominance.
Similar trends are evident in France, where Paris Saint-Germain has won 12 of the last 14 Ligue 1 titles, and in Austria, where Red Bull Salzburg claimed 10 consecutive league championships up to 2024.
As the expanded Club World Cup kicks off on June 14, culminating in the final in New Jersey on July 13, Schafer believes urgent discussions are needed to address the growing financial imbalance in European football.
“We must find solutions,” he warned.
Featured Image Credit: FIFA.com, Unsplash / Bence Balla-Schottner