The Saudi Arabia sovereign wealth fund behind some of the highest value sporting events in recent memory may be considering a change in strategy.
As reported by the Financial Times, the Governor of the Public Investment Fund (PIF), Yasir al-Rumayyan, told the Future Investment Initiative in Riyadh, Saudi’s capital, that the sovereign wealth fund will cut investment in international endeavours.
The total proportion of PIF investment in international projects will be cut to between 18% and 20%, down from a peak of 30% in 2020, FT reported. One-fifth of the PIF’s total assets of US$930bn (£718.2bn) is of course still a substantial amount.
However, this will ultimately represent a narrowing of opportunities for non-Saudi sporting stakeholders hoping to engage with the country’s growing, and more importantly financially powerful, role in sports.
As the Saudi sovereign wealth fund, the PIF has been playing a key role in Saudi Arabia’s sporting ambitions. The Middle Eastern Kingdom has been pursuing a leading spot in sport’s hosting in recent years, part of its Vision 2030 plan to diversify its economy by the end of the decade.
This has seen the creation of LIV Golf, for example, which has subsequently been involved in long-running negotiations with the PGA Tour, also involving PIF. In football, high-profile and high-value footballers move to the Saudi Pro League.
Meanwhile, the Riyadh Season has emerged as a major host of multiple prominent sporting events. World title boxing matches like the undisputed clash between Oleksandyr Usyk and Tyson Fury, UFC events, WTA Tour and ATP Tour tennis finals have all taken place or are due to take place in the Saudi capital.
Saudi investment in sports has extended beyond its shores, however. Take boxing and UFC, for example – the Riyadh Season umbrella has covered stateside events like UFC 306 at the Sphere in Las Vegas, and London-based events like the heavyweight IBF world championship bout between Anthony Joshua and Daniel Dubois.
If the PIF is planning to cut down on overseas investment, it is likely that less events like these will be held in the US and UK, and other countries, and the Riyadh Season will pivot to focusing even more on its namesake city.
With the UFC being a US-based enterprise and Riyadh Season now partnered with the boxing promotions of Matchroom, Queensbury and most recently BOXXER, these sports will of course continue to host Saudi-affiliated events outside of the Kingdom.
The most likely change is that the PIF’s focus will narrow. When it comes to setting up non-Saudi sports events, it will likely focus on the biggest, most high value prospects which guarantee the best return on its investment – last month’s AJ v Dubois clash between two British fighters in the nation’s capital being an obvious example to follow.
Sports stakeholders including media rights and data rights holders, sporting venues, betting operators and suppliers, and prospective commercial partners, should pay close attention to where the PIF decides to target its investments, both across different sports and geographies.
