Eye on geo-politics and declining oil demand, Saudi Arabia is investing billions in sports
Sports diplomacy also normalises western financial and political engagement with the Saudi regime.
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There’s a saying in sports journalism: “The answer to all your questions is money.” But in the case of Saudi Arabia’s massive sports investment programmes during the reign of Crown Prince Mohammed Bin Salman, money is not the whole story.
In a simple sense, there is a clear profit motive. With $925 billion in assets in 2023, Saudi Arabia’s sovereign wealth fund exists to convert oil revenues into even greater national income.
Last year, the country’s Public Investment Fund reported $36.8 billion in profits. Since 2016, it has spent $51 billion on sports properties.
The point is not to turn bin Salman into the world’s greatest sports impresario. Rather, it’s that he’s seeking to improve the economic and geopolitical situation of Saudi Arabia through sports investments while ensuring the long-term survival of the Saudi regime.
Beyond golf, football
Investing in sports is a common way for developing countries to announce their arrival on the global stage. Instead of one-and-done mega events, Saudi Arabia is pursuing a more dispersed and diverse approach.
The Public Investment Fund’s highest profile investments are well known, especially the 2021 purchase of Newcastle United of the English Premier League and the LIV golf tour that challenged the PGA’s decades-long dominance of the sport.
Beyond golf and soccer, Saudi Arabia has also spent dizzying sums on lower profile investments in esports, wrestling and motorsports. In other games,...
