Why did Real Madrid initially seem to reject the Club World Cup invitation?

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Real Madrid's Initial Hesitation Regarding Club World Cup Participation Stemmed from Perceived Undervaluation of Compensation

Real Madrid initially appeared to reject Fifa's invitation to the Club World Cup due to concerns, as expressed by manager Carlo Ancelotti, that the compensation offered to clubs was insufficient given the tournament's revamped format. However, these comments were later clarified, with both Ancelotti and the club confirming their intention to participate.
Concerns Over Tournament Compensation

Carlo Ancelotti was quoted in Il Giornale stating that Fifa had undervalued the compensation for clubs participating in the new 32-team Club World Cup. He specifically indicated that the proposed payment for the entire tournament was comparable to the value of a single Real Madrid match, which he estimated at €20 million. This disparity led to the assertion that both Real Madrid and other clubs would likely refuse the invitation.
Clarification and Reaffirmation of Participation

Following the widespread reporting of his comments, Ancelotti distanced himself from the initial statements via a social media post. He clarified that rejecting the opportunity to compete for major titles with Real Madrid was contrary to his interests. The club subsequently issued a statement reinforcing their commitment to the tournament, describing it as an official competition they would approach with pride and enthusiasm to pursue another title for their global fanbase.

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Why did Real Madrid initially seem to reject the Club World Cup invitation?

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