Al Ahly addresses FIFA over financial issue ahead of FIFA Club World Cup: What is it?

As the 2025 FIFA Club World Cup approaches, Egypt's Al Ahly find themselves embroiled in financial negotiations as crucial as their on-field preparations. The Red Devils have formally petitioned both FIFA and U.S. authorities seeking relief from what could amount to a significant tax burden on their tournament earnings.

Club insiders reveal that Al Ahly's administration has submitted comprehensive documentation, including tax affidavits and official appeals, hoping to either secure an exemption or substantially reduce the potential 30% withholding tax on their $9.5 million participation fee. This figure could grow depending on their performance in the American-hosted tournament running from June 14 to July 13.

The tax dilemma stems from U.S. regulations requiring all participating clubs to pay taxes on FIFA prize money and any compensation provided to players and staff during their stateside stay. While the standard rate reaches 30%, Al Ahly and other African representatives - Tunisia's Esperance, Morocco's Wydad, and South Africa's Sundowns - may benefit from reduced rates thanks to existing tax treaties between their home nations and the United States.

FIFA has committed to communicating each club's financial arrangements to U.S. authorities, specifically noting which participants qualify for treaty benefits. This intervention could prove vital for Al Ahly's financial planning as they balance competitive ambitions with fiscal responsibility.

On the pitch, the Egyptian giants face a daunting Group A featuring Inter Miami, Porto, and Palmeiras. Their tournament opener against Messi's Inter Miami on June 15 presents both a sporting challenge and financial opportunity, with deeper progression meaning greater rewards - and potentially greater tax implications.

As the clock ticks toward kickoff, Al Ahly's front office continues working behind the scenes to ensure their Club World Cup campaign proves rewarding in every sense, both competitively and financially. The coming weeks will reveal whether their diplomatic efforts yield the favorable tax treatment they seek.