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How the PIF has shaped itself into a major global sports power: The Public Investment Investment Fund has become one of the world’s most influential sports investors, shaping the conversation on everything from golf, combat sports, and esports to (more recently) tennis. But nowhere has its influence been more pronounced than in football, the world’s most popular sport, where its growing influence has raised charges that the Kingdom is engaged in “sportswashing.”
In the words of Crown Prince and Prime Minister Mohamed bin Salman: “When you want to diversify your economy, you have to work in all sectors … if you want to have tourism, you have to develop your culture, entertainment and sports sectors…,” the Crown Prince, who chairs the PIF, said in an interview (watch, runtime: 33:23) last year. “Sport used to contribute to Saudi GDP by 0.4%, now it’s 1.5%,” he said.
“If sportwashing is going to increase my GDP by 1.5%, then I will continue to do sportwashing,” the Crown Prince said in response to allegations that Saudi’s spending spree on sports in general — and football in particular — are part of a concerted drive to reshape our image on the world stage.
Newcastle was among the first to take big bucks from the PIF, with no time wasted: A USD 408 mn takeover of English Premier League side Newcastle by a PIF-led consortium forever changed the club. It helped the Toons shift from being a mid-table side occasionally at risk of relegation to one that bumps shoulders with Mbappe’s Paris Saint Germain in the UEFA Champions League — the Toons routed PSG 4-1 in their first ever matchup in Tyneside.
The PIF has so far injected close to USD 1 bn into the club, with the acquisition setting them back more than USD 400 mn and transfers costing them up to USD 474 mn. Some USD 109 mn of that figure was spent in their first transfer window of owning the club, according to FootballTransfers. The following year, they dished out USD 200 mn, with USD 75.5 mn going for Swedish star Alexander Isak.
Something smells like City here: The PIF’s entry to football is often compared to its peers in Abu Dhabi, which acquired a 90% stake in Manchester City in 2008 at a transaction valued at EUR 200 mn. The takeover by the Abu Dhabi United Group (ADUG), an investment company for the Abu Dhabi royal family, helped transform the club with multiple key transfers that helped it break records to become the first English football team to win the treble since their rival Manchester United in 1999.
All roads lead to Roma: Serie A side AS Roma is the latest club PIF is coveting, with Forbes reporting that “negotiations are underway” for a near USD 1 bn acquisition, which could be extended by an additional USD 325 mn to build a new stadium in Rome. Serie A clubs have since been on the PIF’s radar for a while now, with the Kingdom hosting multiple Italian football clubs events. Three of the earlier five Italian Super Cup Finals were held in the Kingdom. The Lega Serie A also plans to open a new office in Riyadh after opening its first base in the region in Abu Dhabi.
Big bucks abroad, big bucks at home: The PIF’s football push is also being directed at the local football scene privatization. Top clubs Al Ittihad, Al Ahli, Al Nassr, and Al Hilal were transferred to the PIF last June. The four clubs have been reshaped as corporations in which PIF holds a 75% stake, with the remaining 25% being up for grabs via their general assemblies. A second wave of football privatization is in the works, Deputy Sports Minister Bader Alkadi said last month.
With even more top global player transfers: More players are inbound, joining the likes of Karim Benzema, Cristiano Ronaldo and Neymar, according to officials. It remains unclear if the transfers would be of the same caliber as their predecessors, but Liverpool star Mo Salah is among those names that could be coming to Saudi.
And then there’s the biggest target of them all: The World Cup: Saudi officially kicked off in March its bid to host the 2034 FIFA World Cup. It’s a foregone conclusion that the cup is coming here: The Kingdom has been confirmed the sole bidder after Australia said it would not be throwing its hat in the ring. Officials have already begun refurbishing sports facilities and stadiums for the tournament. The Fifa Congress should confirm Saudi is the official host by the end of this year.
There’s no visible ceiling to the scope of the PIF’s ambitions to become a major global sports power as it eyes investments in tennis, golf and others. It signed a “multi-year strategic partnership” with ATP Tour in February to become the official naming partner of ATP rankings and partner in several ATP Tour events. Saudi is also looking to bid for the hosting of the ATP Masters 1000 event. It is also seeking to run a tennis event featuring the world’s best players before the Australian Open in January. The women’s tennis tour is also on the fund’s radar as it eyes hosting rights for the 2024 WTA finals.
And talks on a merger of PIF-backed upstart Liv Golf and the PGA and European tours is still in the cards, with a “constructive” meeting in the Bahamas last month between PIF and PGA Tour.
