FIFA Club World Cup 2025: CPA Tax Strategy for U.S. Tournament Earnings

FIFA’s Club World Cup & U.S. Taxes: What We’d Do as Your CPA

The 2025 FIFA Club World Cup is coming to the United States! This is exciting news for soccer fans around the world. But for the 32 teams taking part, there’s more than just soccer to think about—there are big tax questions, too.

As your CPA, we’re here to explain what’s going on in a simple way. We’ll also share what we would do to help your club keep more of its money and stay tax-safe.

What’s the FIFA Club World Cup?

The FIFA Club World Cup is a big soccer event where top clubs from around the world play for a huge prize. In 2025, this event is being expanded to 32 teams and hosted in the United States.

Each team could earn millions just by showing up. For example, Chelsea and Manchester City are set to receive over $38 million before taxes. That’s a lot of money—but taxes might take a big chunk out of it.

The Big Tax Problem

Usually, big sporting events like the World Cup get special tax deals. For the 2026 World Cup, FIFA worked out a deal with the U.S. government so that many taxes would not apply.

But the 2025 Club World Cup was planned quickly. There was no time to make a full tax deal with the U.S. government. That means teams might have to pay full U.S. taxes—on top of what they owe in their home countries.

Why U.S. State Taxes Matter

In the U.S., each state has its own tax laws. Some states, like California, have a state income tax. California’s rate can be as high as 7%. Other states, like Florida, have no state income tax at all.

This means a team playing in Los Angeles could pay a lot more in taxes than a team playing in Miami. That’s not very fair, is it?

What About Tax Treaties?

Many countries have tax treaties with the U.S. These are agreements that help avoid double taxation. But here’s the tricky part: some U.S. states don’t follow these treaties. So even if your home country has a tax deal with the U.S., the state where your match is held might not honor it.

That’s another way clubs could end up paying more than expected.

What Is FIFA Doing About It?

FIFA knows this is a problem. That’s why they’ve been working hard to fix it. FIFA’s president, Gianni Infantino, has met with U.S. leaders, including Donald Trump. FIFA has even spoken with the FBI to make sure everything is done right.

But so far, there’s still no tax deal in place for the 2025 Club World Cup. That means clubs need to plan carefully—or risk a big surprise when tax season comes.

What We’d Do as Your CPA

If we were your club’s CPA, here’s how we’d help you handle this situation the smart way.

1. Do a Full Tax Risk Check

First, we’d look at every city where you’re playing. We’d check the tax rules for each U.S. state and compare them. We’d also see if your country has a tax treaty with the U.S.—and if that treaty applies in each state.

This gives us a clear picture of how much tax you could owe. No surprises.

2. Choose Lower-Tax Locations When Possible

If there’s a chance to have more control over where matches are played (like friendlies or training camps), we’d suggest lower-tax states. For example, Florida and Texas are better for tax savings than California or New York.

Even just a few games in a no-tax state could make a big difference.

3. Plan for Withholding Taxes

In the U.S., income earned here is often subject to withholding tax. That means money gets taken out before you even see it.

We’d work to lower this withholding if your country has a treaty with the U.S. But we’d also prepare you for how much to expect, so it doesn’t cause budget problems later.

4. Avoid Double Taxation

If you’re taxed in the U.S. and also in your home country, we’d help you claim foreign tax credits—if they’re allowed. These credits can lower your home country tax bill by the amount paid in the U.S.

We’d also work with tax advisors in your home country to make sure you don’t pay twice on the same income.

5. Use Smart Business Deductions

Playing in the U.S. comes with lots of expenses: travel, hotels, staff, and gear. We’d make sure to track all those costs and use them to reduce your taxable income.

The more valid expenses you have, the less profit you report—and the less tax you owe.

6. Help With Reporting and Deadlines

The U.S. has strict tax filing rules. Missing a deadline could lead to big penalties.

We’d make sure everything is filed correctly and on time. We’d also keep you up to date on any new tax rules FIFA negotiates before the tournament starts.

Don’t Forget About Non-Playing Clubs

FIFA plans to give $250 million to clubs that aren’t playing but helped develop the players. If your club is getting one of these “solidarity payments,” those funds may also be taxed in the U.S.

We’d review those too—and apply the same smart tax planning steps.

Legacy Payments for Host Cities

FIFA is giving $1 million to each host city. If your club is involved with one of those cities—through sponsorship, hosting, or logistics—we’d look at those payments, too. Depending on how they’re structured, taxes might apply.

Final Thoughts: Plan Now, Save Later

The 2025 FIFA Club World Cup is a big event—with big money on the table. But without smart planning, taxes could eat away a huge chunk of those earnings.

As your CPA, our job is to help you keep more of your money. We’d look at every rule, every state, and every match location to make sure you’re prepared. No guesswork. Just good strategy.

Don’t wait until the final whistle blows—start planning today.