World Chess Championships - Financing

Financing

Before 1948 world championship matches were financed by arrangements similar to those Emanuel Lasker described for his 1894 match with Wilhelm Steinitz: either the challenger or both players, with the assistance of financial backers, would contribute to a purse; about half would be distributed to the winner's backers, and the winner would receive the larger share of the remainder (the loser's backers got nothing). The players had to meet their own travel, accommodation, food and other expenses out of their shares of the purse. This system evolved out of the wagering of small stakes on club games in the early 19th century.

Up to and including the 1894 Steinitz-Lasker match, both players, with their backers, generally contributed equally to the purse, following the custom of important matches in the 19th century before there was a generally recognized world champion. For example: the stakes were £100 a side in both the second Staunton vs Saint-Amant match (Paris, 1843) and the Anderssen vs Steinitz match (London, 1866); Steinitz and Zukertort played their 1886 match for £400 a side. Lasker introduced the practise of demanding that the challenger should provide the whole of the purse, and his successors followed his example up to World War II. This requirement made arranging world championship matches more difficult, for example: Marshall challenged Lasker in 1904 but could not raise the money until 1907; in 1911 Lasker and Rubinstein agreed in principle to a world championship match, but this was never played as Rubinstein could not raise the money; and Alekhine, Rubinstein and Nimzowitsch all challenged Capablanca in the early 1920s but only Alekhine could raise the US $10,000 Capablanca demanded and only in 1927.