Florentino Perez's Club World Cup dream has a catch: "Nothing in life is free."

Florentino Pérez's response to Javier Tebas regarding the Club World Cup was immediate. "Real Madrid has been one of the teams that has fought the hardest to ensure this Club World Cup is played. This tournament is free , and children all over the world can watch Real Madrid. Football is going to change with the union of the big clubs," the Real Madrid president stated on DAZN , just before the debut of the innovative FIFA tournament , a competition that will distribute up to €1 billion among participating clubs and another €250 million to non-participating clubs through its solidarity fund.

In the economic and sporting battle that the two leaders have been waging for years, the LaLiga president had been very emphatic . "My goal is to stop there being more Club World Cups , I'm very clear about that. We have to eliminate it ," he responded regarding the possibility of aligning the calendar. "There are no dates. We don't need another competition that moves money to a certain sector of clubs and players and comes from somewhere . There's no more money here; we have to maintain the ecosystem and eliminate it."

After all, the FIFA Club World Cup is nothing more than a rehearsal for the 2026 World Cup for the United States... and for the Super League dreamed of by Florentino Pérez . But how is it possible that FIFA has structured such a massive prize money while stadiums aren't filled , soccer isn't among the three most popular sports, and immigration tensions are hampering stadium attendance ? Javier Tebas is right to point out that the money "comes from somewhere" ... and that somewhere is Saudi Arabia.

Saudi Arabia's bailout of FIFA

DAZN acquired the television rights to the FIFA Club World Cup for a staggering €1 billion. Shortly after, Saudi Arabia bought a 10% stake in DAZN through its sovereign wealth fund (PIF) for... €1 billion! In that same timeframe, the Saudi Arabian bid won, unopposed, individually and to applause , the race to host the 2034 World Cup . Spain will share the 2030 World Cup with Portugal, Morocco, Argentina, Paraguay, and Uruguay. It's all in-house.

"It's hard to see the DAZN deal as purely market-driven. Let's face it. Several established broadcasters and streaming platforms pulled out, reluctant to pay FIFA's demands . Suddenly, DAZN steps in with a multi-million-pound deal—and DAZN , let's remember, has strengthened its ties with Saudi Arabia in recent years," explains Stanis Elsborg, sports governance and ethics expert at Head of Play the Game (part of the Danish Institute for Sports Studies, IDAN).

"It's no coincidence. It's a political-economic agreement that benefits both parties. FIFA secures a last-minute lifeline, and Saudi Arabia increases its influence in world football," Elsborg points out. "For Florentino Pérez , Saudi Arabia is doing global good with free matches and sponsorships. But as an economist, the first thing you learn is that nothing is free ," argues Simon Chadwick, professor of sports at the University of Leeds.

"There is no such thing as a free lunch"

" This is Saudi Arabia exerting power and trying to gain control so that people have a healthier relationship with them. Many will say the country is trying to clean up its image, but it's too simple to leave it at that. What they want is to shift the hegemony and narrative from an inefficient and troubled state to a strong, economically resilient nation that's attractive to the world. They want a fundamental change in their economy ," Chadwick says.

Saudi Arabia not only facilitated the lucrative TV rights deal when interest in the Club World Cup in the United States was low, but also became the main sponsor of the Club World Cup. On June 5, the PIF became a main partner of the tournament , on par with brands such as Coca-Cola, Visa, and Adidas, and strengthened its strategic alliance with FIFA . In this way, the Saudi sovereign wealth fund guaranteed its presence in the stadiums, with advertising on billboards and in the stands , broadcasts, FIFA's digital marketing, and international commercial rights.

" PIF's sponsorship is a sign of the Arab world's growing interest in playing a central role in the global arena," FIFA President Gianni Infantino announced. PIF, for its part, stated, "This partnership reinforces our commitment to international sport and our vision of connecting people and communities through football."

Saudi Arabia's commitment to sport

The Saudi government officially joined FIFA, which already enjoyed the financial backing of ARAMCO , the Saudi state oil company and FIFA's main sponsor, with a record €100 million annual contract . In 2016, the Saudi regime launched the national Vision 2030 project with the aim of "growing the Saudi private sector to create a dynamic society, establishing a prosperous economy through diversification, and investing to enable Saudi Arabia to compete and trade globally . A unique economic transformation and social reform project that will open Saudi Arabia to the world," the government explained.

"What Saudi Arabia has done in recent years is invest commercially in immature economic assets that have a global impact . And that's precisely what this FIFA World Cup is. The tournament is a commercial asset that needs to be developed and that, in turn, already has a global footprint ," says Simon Chadwick, professor of sport at the University of Leeds.

"Saudi Arabia has made an economic commitment to seek long-term value and create opportunities to promote the country's organizations and brands. They want to diversify their oil and gas economy . Mohammed bin Salman aims for sport to contribute 3% of GDP . That's why they are trying to generate assets that provide them with a long-term economic return and help them develop a Saudi sports ecosystem, weaving sponsorships, developing specific agencies, consultancies and even competition in audiovisual rights," concludes the academic, who participated as research director in the organization of the 2022 World Cup in Qatar .

What the Gulf country earns

"This deal is a classic example of how sports governance is moving away from democratic accountability. When global football relies on deals between streaming companies and sovereign wealth funds , we lose sight of who actually runs the sport and for whose benefit. FIFA's refusal to disclose all the details, coupled with the growing presence of capital from authoritarian countries, creates a governance vacuum ," Elsborg argues.

But what does Saudi Arabia gain from this heavy investment? "It's a question of hegemony, control, and power . Who exercises global influence in sports. Historically, this has been done by Europe. FIFA's headquarters are in Europe, and its presidents have been predominantly European, although in the last 40 years, the United States' influence in terms of sponsorships, commercial relations, and the television rights model has grown," Chadwick points out.

"Now we have the Gulf States trying to acquire that power , and Saudi Arabia in particular. This has consequences such as contributing to the legitimacy of the Saudi regime and soft power . They want to change the hegemony and the narrative, and that's why they've funded the FIFA Club World Cup. They've also identified an opportunity in Asian sport to become leaders and grow their economy through sport," notes Chadwick, who worked for UEFA for more than 20 years.

A turning point?

"It certainly seems like a turning point. The Club World Cup, as it now stands, didn't arise from fan demand or sporting necessity. It's a top-down, highly politicized project, created to serve power and profit. Infantino literally engraved his name on the trophy," the expert in sports governance and ethics remarks.

"We need much stronger oversight mechanisms, and they can't be internal to FIFA . Perhaps FIFA should adopt an ethical investment policy, including human rights due diligence, for all its business partners and not allow state-owned companies and funds to be so significantly involved financially in sport. And, more generally, there needs to be greater global independence ," Elsborg concludes.

"Power doesn't just belong to states, it also belongs to the television networks from which they buy these television rights. FIFA has a problem , and that is, when you depend so much on the other party in a power relationship , it leads to an imbalance that then results in decisions guided and made based on self-interest . Saudi Arabia decided that the Club World Cup would be free and thus decreed what people could and couldn't watch and how they should consume it. That's power," says Chadwick.

Will the Club World Cup mark a turning point in Saudi Arabia's strategy ? "This tournament belongs to FIFA, but it won't end there, even though it's their most successful partnership to date. Saudi Arabia will continue to develop its power in other sports, whether through investment as it has done so far or through the creation of intellectual property. Saudi Arabia would like to have its own tournament , something that would give it much greater power and influence. That's where we're headed, because they have an economic and political plan," the professor concludes.