Saudi Arabia's massive spending spree on global sports — from football to snowboarding — appears to be winding down. The kingdom, which has used sports as a key pillar of its Vision 2030 diversification plan and as a tool for sportswashing, is now pulling out of major events and contracts.
The most high-profile withdrawal came in golf: LIV Golf, backed by the Saudi Public Investment Fund (PIF), was shut down. PIF stated that the 'substantial investment' required was 'no longer consistent with the current phase of PIF's investment strategy.' Launched in 2021, LIV Golf had lured top players from the PGA Tour with enormous salaries.
In football, PIF sold a 70% stake in Saudi Pro League club Al Hilal in April, framing it as a strategy to 'maximize returns and redeploy capital within the domestic economy.' However, PIF has not moved to sell English Premier League club Newcastle United and continues to invest in football ahead of the 2034 World Cup.
Several other events have been canceled: the Saudi Arabia Masters snooker tournament was scrapped two years into a 10-year deal; the Women's Tennis Association (WTA) had its funding pulled and its season-ending event canceled; Saudi Arabia abandoned plans to host the 2035 Rugby World Cup and the 2029 Asian Winter Games.
The reasons are both economic and political. PIF Governor Yasir al-Rumayyan cited the fallout from the US-Israel war on Iran and minimal returns on sports investments as reasons for reassessing priorities. PIF's new 2026-2030 strategy focuses on 'maximising impact, raising efficiency, and applying the highest standards of governance.'
Human Rights Watch (HRW) views Saudi sports investments as a clear case of sportswashing, used to whitewash the country's poor human rights record. Critics argue that many sports have become dangerously dependent on Saudi cash, which is now being turned off.
Formula One, horse racing, chess, handball, and other sports reliant on Saudi funding may face similar cuts. PIF's new stance suggests that only profitable ventures will continue to receive support, leaving many sports vulnerable.
Source: www.dw.com