The huge financial incentives for lifting the Club World Cup this summer have been revealed after FIFA confirmed the winners stand to bank $125million (£97m) in prize money.

The new 32-team tournament, held in the United States between June 14 and July 13, will see a $1billion pot shared out between those participating and a run to the final is now guaranteed to bring a huge windfall.

FIFA confirmed its distribution model on Wednesday morning, with its president Gianni Infantino calling it the “biggest-ever prize money for a football tournament” of its seven-game format.

Almost half of the total prize pot — $475m — will be shared based on sporting performance, with payments shaped by a team’s progress in the competition. Winning all seven games, including the three group fixtures, round of 16, quarter-final, semi-final and final, will be worth $87.62m.

In a model similar to UEFA’s distribution in their three club competitions, teams will then get a further participation payment.

The 12 European clubs will also get between $12.8m and $38.2m in a “ranking based on sporting and commercial criteria”, with the six South American clubs getting a flat fee of $15.2m. Auckland City, the only Oceania club, will receive $3.58m, with the rest, from North and Central America, Africa and Asia, receiving $9.55m for qualifying.

A European winner, with Real Madrid, Manchester City and Paris Saint-Germain among the favourites, could see one club netting a huge return for what amounts to a month of work. Even a run to the semi-finals could be worth in the region of $85m before the two finalists then share out another $70m.

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