It looks like the FIDE Championship is taking place after all. The first round is scheduled for September 28th. Not sure about its sporting value, but at least it looks like they have funding, at least enough to put an official website up.
The players will be
#2 Anand (2788)
#3 Topalov (2788)
#4 Leko (2763)
#7 Svidler (2738)
#8 Polgar (2735)
#13 Adams (2719)
#14 Morozevich (2707)
#35 Kasimdzhanov (2670)
Of course #1 Kasparov is retired, and #6 Kramnik (Classical Champion) would not participate in this event. However, there's no word on why #5 Ivanchuk is not participating while MUCH lower rated Morozevich is. (Adams is taking part as the runner-up from the last FIDE Championship.)
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