Plans are advancing for a sports-specific investment group in Saudi Arabia following successful ventures into professional golf and English football, according to a report in the Financial Times.
The depths of the financial reach of that fund or timing of its launch were not clear.
The Public Investment Fund became prominent in North American professional sports with the launch of LIV Golf, a league built as a rival to the PGA Tour using funds from the kingdom’s sovereign wealth fund to lure top golfers including Phil Mickelson, Brooks Koepka, Sergio Garcia and Cam Smith.
Crown Prince Mohammed bin Salman, recognized as the ruler of Saudi Arabia, identified the $600 billion PIF as the central pillar in reformation of the economic structure of the nation with a focus on sports and entertainment investments to spur tourism and grow wealth. The overall plan, known as Vision 2030, includes an expected effort to host the World Cup that year.
In an interview with CNBC, investment minister Khalid Al-Falih said the expansion could involve the PIF as a partial or exclusive investor — as is the case with LIV — in sports entities or franchises.
PIF governor Yasir al-Rumayyan is the forward-facing figure for most LIV golfers and chairs Newcastle United in the English Premier League. He stands to have a chairman’s role under the future joint venture proposed with the PGA Tour. Saudi Arabia has made noteworthy investments in other sports already, including boxing, Formula 1 racing and World Wrestling Entertainment (WWE).
“It’s part of retaining our Saudi citizens, global residents who choose Saudi Arabia as their home, to stay in Saudi Arabia and to consume this product that is of high demand,” Al-Falih told CNBC, “and also to bring global followers of sport to the kingdom for the various activities and sports that will be taking place here.”
In recent days, many pro sports leagues have admitted to being interested in the windfall behind potential events and partnerships with Saudi officials. Women’s tennis legend Billie Jean King, current American standout Jessica Pegula and 2022 Wimbledon finalist Ons Jabeur of Tunisia all said they would be in favor of tournaments in Saudi Arabia to close the pay gap between men’s and women’s tennis. Last year, ATP officials said they had talks described as “positive” with Saudi officials.
WTA chief executive Steve Simon cited issues on women’s rights and LGBTQ+ issues in Saudi Arabia but said the circuit had no plans to “walk away from” the potential opportunity.
Qatar’s sovereign wealth fund proposed a purchase of a minority stake in Monumental Sports and Entertainment, which owns the NHL’s Washington Capitals and NBA’s Washington Wizards.
–Field Level Media
