Saudi Arabia’s growing influence in world sport took what is arguably its most significant step to date on Tuesday.
The LIV Golf Series, backed by Saudi Public Investment Fund (PIF) finance, is merging with the PGA and DP World Tours to create a new vehicle to manage the commercial interests of elite golf, ending a year-long dispute between LIV and the established tours.
Here, the PA news agency examines how and why Saudi Arabia has become such a major player and what ambitions it may have for the future.
First, why is Saudi Arabia doing all this?
Critics of the regime say the country, under its de facto leader Crown Prince Mohammed bin Salman, is using sport to bestow legitimacy on the country and effectively “sportingly ruin” its reputation given the kingdom’s long history of human rights abuses.
Saudi Arabia, on the other hand, sees sport as a crucial part of its “Vision 2030” strategy. The country is investing heavily in many sectors to diversify its economy and break away from finite oil reserves. One of them is sports.
Investing in sport, say those speaking for the Saudis, is aimed at promoting the participation of men and women in sport at grassroots level and at creating an elite-level professional environment in which Saudi athletes, national teams and clubs can compete in all sports can thrive.
football
Karim Benzema is the latest big name to rise to the Saudi league – and will almost certainly not be the last (Bernat Armangue/`)
As far back as 2018, it was believed that Saudi funding was behind plans to expand the FIFA Club World Cup and although those plans were abandoned, Saudi influence has steadily grown ever since.
The PIF’s acquisition of an 80 per cent stake in Newcastle in 2021 after a protracted takeover remains the most obvious Saudi interest in the sport from a British perspective, but its ambitions haven’t stopped there.
Significant investments are being made to bring some of the world’s top stars to Saudi Arabia. Cristiano Ronaldo joined Al Nassr in January, his former Real Madrid team-mate Karim Benzema joined Al Ittihad on Tuesday and Lionel Messi is in Al Hilal’s sights. All three clubs are said to be majority-owned by the PIF – along with Al Ahli – as part of a government inquiry into privatizing ownership in elite sport.
The story goes on
The net worth of the PIF is estimated at over £500 billion.
Benzema is expected to feature for Al Ittihad at December’s Club World Cup in Saudi Arabia, a tournament Manchester City will take part in if they beat Inter Milan in the Champions League final on Saturday.
Saudi Arabia is also reportedly providing funding for a new Super League in Africa.
golf
Tuesday’s announcement regarding the merger of LIV, PGA and DP World Tours at a commercial level is of tremendous importance. Some observers said it was less a merger than an elite-level takeover of all sport by Saudi Arabia.
The PIF will provide initial financial support to the new company and will have the exclusive right to make further investments and a no-first refusal of any other capital to be invested. PIF Governor Yasir Al Rumayyan – who is also Newcastle leader – will chair the new body.
formula One
Earlier in the year, reports surfaced that the PIF wanted to buy the series, but its owner, Liberty Media, was unwilling to sell it.
Nonetheless, Saudi company Aramco is one of Formula 1’s key ‘global partner’ sponsors and since 2021 the country has hosted a Grand Prix every season, with the last race this year taking place on March 19.
boxes
Anthony Joshua and Oleksandr Usyk went head-to-head in Saudi Arabia last year (Nick Potts/PA)
The country has emerged as a preferred venue for promoters in recent years, with British heavyweight Anthony Joshua having fought there in 2019 and 2022.
The Sun reported in April that Joshua’s promoter Eddie Hearn was in talks about another trip to Saudi Arabia in December, this time as part of a four-way tournament featuring Tyson Fury, Oleksandr Usyk and Deontay Wilder.
snooker
An agreement had been reached for Riyadh to host a £2.5million World Snooker Tour event in October 2020 before the Covid-19 pandemic scuttled those plans.
The future
Saudi Arabia is interested in hosting mega-events like the soccer World Cup in the future (Martin Rickett/PA)
Saudi Arabia aims to make its Pro League one of the premier domestic leagues in the world and will continue to add star names to boost its profile and ability to generate revenue.
But Saudi ambitions also extend to the sport’s crown jewels – there have been reports of a Saudi bid alongside Greece and Egypt for the 2030 World Cup and even to host Olympics.
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