2023-07-06 05:50:49
newspaper reportedFinancial TimesCiting two undisclosed sources, Saudi Arabia is planning to launch a huge company to invest in the sports field.
According to the British newspaper specialized in the world of business and finance, the company will be affiliated with the Public Investment Fund headed by the young Crown Prince, Prince Mohammed bin Salman.
The newspaper stated that the investment company will undertake to conclude more acquisitions in football, tennis and other sports, with a capital of billions of dollars.
Officials of the $650 billion Saudi Public Investment Fund could not be reached for comment.
The kingdom’s push towards global sport raises concerns from human rights groups and accusations of what is known as “sportswashing” in an attempt to boost its image around the world despite its poor human rights record.
However, the Gulf kingdom denies these allegations and insists that investing in sports comes within a broader plan to diversify sources of income away from oil within Vision 2030.
According to the newspaper, the new investment company was motivated by the success achieved by Saudi Arabia in golf and its acquisition of Newcastle Football Club.
And last month, the American PGA Golf League announced a sudden merger with the LIV League funded by the Saudi sovereign wealth fund, in an attempt to bridge the rift between the two parties after a two-year dispute. US media described the deal as a “victory” for Saudi Arabia.
The deal would lead to the creation of a “new collectively owned for-profit entity” after it also included the European DB World Tour. The New York Times has published the proposed name for the new entity: Neoco, but the final details of the deal are still being negotiated.
In the English stadiums, Saudi Arabia achieved success with the Newcastle club, which was acquired by the Public Investment Fund in October 2021, after the club returned to participate in the European Champions League for the first time in twenty years.
Speaking to the Financial Times, a person familiar with the Saudi sovereign wealth fund’s strategy said: “After the World Cup, there was definitely a sense of optimism to invest in global sport.”
According to the newspaper, the “Leaf” golf club and the Newcastle club will not be under the supervision of the new investment company, but will focus on new opportunities.
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