This has placed Saudi Arabia squarely in the spotlight, thanks to its $4 billion investment in hosting the new-look Club World Cup. Public Investment Fund (PIF) is taking on to deliver financial backing for this remarkable tournament. Many have called this partnership a “marriage of convenience.” It has garnered much public interest for its shocking financial ramifications, as well as its likely to devastating effect on worldwide football.
The new expanded Club World Cup which will be held in the United States includes a staggering prize pot of $1 billion (£750 million). If the big boys of Europe do their job, they can be rewarded with up to £97 million! This major financial lure has caused many to be concerned about the competitive balance of domestic leagues. There are worries that these investments might distort local competitions and advantage wealthier teams in unfair and undesirable ways.
Saudi Arabia’s PIF has officially partnered with FIFA for the Club World Cup, a move that sparked speculation about further connections to the 2034 World Cup, for which Saudi Arabia was confirmed as the host in December. This confirmation came after a largely unopposed wish, with Australia the only other likely challenger.
Gianni Infantino, FIFA’s president, is positively giddy about the future of football. In the process, he promises the new Club World Cup will figure out how to have football really globalized. Saudi clubs have already begun to leave their mark on this long-standing and storied tournament. While Al-Ahli has already earned their place in the 2029 tournament, their domestic rivals at Al-Hilal, also owned by the PIF, are involved right now.
Saudi Arabia’s cash backing is significant. A wholly-owned subsidiary of PIF, the Saudi Public Investment Fund, recently cemented this by purchasing a minority stake in DAZN for $1 billion. These three tournaments FIFA are already planning bring their prize money pay outs to over $1 billion with DAZN’s likely agreement to pay FIFA this season. This deal has raised alarm on all sides.
Sepp Blatter, former FIFA president, has previously warned that Saudi investments in football could set a dangerous precedent. He noted that “it is obvious that without Saudi’s investment, the Club World Cup could not be organized in the US… it’s only through financial help of $1 billion from Saudi Arabia that the coverage of this competition was possible.” He remarked on the broader implications of these investments, stating, “There is no more mystery… Saudi Arabia has taken control of international football.”
The critics have been right to raise the alarm about clear conflicts of interest like FIFA’s shameful lack of transparency in its dealings. Nicholas McGeehan from the football campaign group Fair Square stated, “During this deeply flawed bidding process… FIFA sealed a commercially inexplicable broadcasting deal said to be worth $1 billion with an entity that is now part-owned by Saudi Arabia’s Public Investment Fund.”
DAZN’s chief executive for emerging markets, Pete Oliver, did not hide the importance of the competition for his company. “We’ve been looking for a big property to take DAZN to the next step,” he said. He focused on the opportunity this event could provide to confirm DAZN as the home of football around the world.
Oliver added, “We think this will be the most streamed sports event ever. It will help us build a huge customer database.” He dismissed speculation suggesting that DAZN is merely a pawn in Saudi Arabia’s broader sports strategy, asserting, “People always speculate but I can tell you we’re not being used as a pawn or anything like that.”
Saudi Arabia is dumping incredible amounts of money into sports to aid its plan to diversify and modernize its economy. Observers are divided on whether these monetary investments will lead to positive long-term outcomes. While some view it as an opportunity for growth and global engagement, others caution against the potential for imbalance in international football.