Saudi Arabia and Sport: Purchasing Global Dominance
History has often shown that the very idea of sport serves as evidence that politics are a deft art that can distract the public’s attention away from inhumane goals. It is for this reason that international sports continue to be unregulated – abuse, murder, scandalous investment – all for one thing: ultimate domination. However, it is this ‘win at all costs’ mentality that breeds competition, the cornerstone of the world's economy and pillar of capitalism, and the backbone of democratic government. Accordingly, it is evident that Saudi Arabia’s unparalleled investment into sport, soccer and golf in particular, and attempt to buy their way into global access is not a good business or political plan. Ultimately, their goal is global superiority through various forms of entertainment, camouflaging their constant engagement in order to reflect cultural popularity. Saudi investment in sport has been extremely calculated and strategic, relying on capitalism to not only monopolize the sporting industry, but also to cripple the global economy by stripping opposing political powers of financial resources, capital gains, and market interest.
Since 2021, Saudi Arabia’s Public Investment Fund (PIF), which holds around $620 billion, has invested around $6.3 billion into sporting teams, leagues, and players globally (Michaelson, 2023). Yet, this relatively young endeavor of sporting dominance is backed by their most reliable source of revenue: oil. In the 1980s, the Saudi economy boomed as grand amounts of petrol were discovered throughout the state. Since that time, the Kingdom has consistently been among the top suppliers of the world's oil, with a market share of 13% in 2022, second to only the United States who supplied 21% in the same year (eia, 2022). Yet, despite international policy regarding the regulation of “liquid gold”, the true barrier to Saudi’s monopolization of oil is geography. Aramco, the state owned gasoline company run by PIF governor Yasir Al-Rumayyan, does not have ownership of, let alone access to, oil in the United States, Russia, or any other foreign country (Elsborg, 2023). Due to this, Saudi Arabia is forced to engage fairly in the global economy – most notably, they heavily leverage their oil supply through legal practices within the World Trade Organization. Yet as the world becomes less reliant on petrol and more hopeful on the promise of renewable energy, entering the unregulated market of sport is an attempt to diversify their economy.
The first sign of the Kingdom’s desire to enter the sporting world was in 2018 when the PIF invested $100 million into American based World Wrestling Entertainment. With a larger and more varied economy, Saudi Arabia’s strategic financing developed a more autonomous foreign policy and improved its reputation abroad by associating itself with popular cultural products (Berman, 2023). However, all involvement in sport is not exclusively foreign; in the summer of 2023, the PIF contributed its resources to four domestic soccer teams in the Saudi Pro League. That same summer, Al-Ahli, Al-Ittihad, Al-Hilal, and Al-Nassr got a combined $907 million, bringing in global superstars such as Cristiano Ronaldo and Neymar jr. (Elsborg, 2023). Ironically that particular investment resembles the larger scale issue of what the Saudi government and PIF are doing, presenting credible risks to the legitimacy of sports and its commitment to democracy. Evidently, the justification for increasing their GDP serves as a front for sportswashing, which is used to conceal internal human rights issues and change the global opinion on the sovereign state.
The concept of sportswashing, attempting to improve one’s image by using significant investment in major sporting events, is adapted from the theory of greenwashing. Originating in 1986, organizations heavily invested resources to project an environmentally friendly image to consumers. Yet, the dishonest marketing ploy, utilized by businesses, inflated the extent of their ecologically beneficial initiatives (Edwards, 2023). Most clearly demonstrated through the American based company Chevron Oil in 1997, the “People Do” campaign broadcasted their dedication to the environment while they were simultaneously ruthlessly pouring oil into wildlife refuges. As argued by Geoffrey Jones, companies (nations) are, more often than not, profit driven – they provide a radical substitute for traditional capitalism, where the primary focus of their tactics continues to be profit maximization at the expense of environmental (sporting/political) consequences (Jones, 2022). Comparing the two – sportswashing and greenwashing – both effectively utilize the power of marketing to create a welcoming brand image by deceiving consumers. Saudi Arabia often employs cause-related marketing (CRM) which connects, in the context of sport, the nation to a relevant tournament, league, or player (Joo, Koo, Fink, 2016). Through the use of CRM, weapons of destruction are being created, marketing strategies pulled from the fabrics of the dark side of capitalism turns the environment into sources of profit.
Similar to many other countries, Saudi Arabia acknowledges the financial advantages of projecting a favorable image on the global stage. As seen in the 1936 Berlin Olympics, Nazi Germany aimed to reassure the world that Germany was dedicated to a peaceful coexistence, offering a chance for friendly competition and cross-cultural cooperation. Additionally, the Nazi party utilized the attention of the world to demonstrate their architectural achievements such as the Olympic Stadium and other modern infrastructure built for the event (Smith, 2022). Investment into physical capital projects a progressive and contemporary vision of the world that coincides with capitalist goals. Knowing this, Saudi Arabia has recently begun improvements on King Fahd International Stadium. Developments such as this are prominent features of Qiddiya, a tourist destination west of Riyadh, the nation's capital, and Neom, Saudi’s $500 billion “city of the future” (Smith, 2022). These extravagant and audacious projects are supported by the principle of dominance, or more simply, the principle of destruction – competitiveness is slowly becoming obsolete. In today’s consumer focussed society, sport has entirely lost its original meaning and has evolved into a routine circus subject to the regulations of show business.
In 2021, the PIF bought an 80% stake in English Premier League team Newcastle United Football Club (NUFC) for around $400 million, making their sporting sponsorship and investment strategy more evident than ever. Taking ownership of the historic club brought to light the power of the Saudi dollar and the kingdom’s desire to cover up its horrific history through sportwashing (Michaelson, 2023). Under the leadership of Al-Rumayyan, the owner of Aramco and governor of the PIF, Newcastle quickly became the symbol, both evidently and obscurely, of Saudi involvement in sports. Specifically, as the world’s most popular sport, soccer is a lucrative endeavor that reduces financial strain (Dozier, 2013). Prior to the 2022/23 season, the sporting world was stunned by the release of the NUFC away kit, which was made with the same shades of green and white displayed in the Saudi Arabian flag. Moreover, the club is now littered with Saudi sponsorship: e-commerce platform NOON which is funded by the PIF and entertainment company Sela which is also funded by the PIF can be seen across the jersey. In 2023, state sponsored SAUDIA was named the official airline partner of the club (Elsborg, 2023). Yet, foreign ownership across all sports is not a new practice. American and Russian billionaire’s were trailblazers of the practice; however, the Kingdom has intensified it. The general rules regarding the ownership of a sports team directly correspond with capitalistic ideas, especially the emphasis on the dominance of profit-seeking and brand promotion as a principle. Purchasing Newcastle serves as a shield to preserve the image of a competitive market, but the monopolization of sport will lead to an eventual decay.
As displayed through Marx’s concept of alienation, it is likely that sports may lose their original meaning as a form of recreation and pleasure when they are used to further political agendas. According to his explanation, alienation occurs when the result of labor perceives labor as something alien, as a power independent of the producer (Guy-Evans, 2023). Under the condition of sportswashing, the idea of optimal effort is substituted for the notion of “greater effort”, it is therefore about the struggle of the body in sport, not the humanization of it (Simonoviç, 2016). The pursuit of wealth at the expense of others occurs in both Marx’s theory and the cruel system of the Saudi sports ring. In this, athletes are forced to compete beyond their physical ability to meet the requirements of their employers. Deriving surplus value from the labor of the working class (the athlete), the capitalist class (the government) makes more money under a capitalist economy. As a result, capitalists unjustly claim the surplus value created by labor as profit, while the workers are paid significantly less than what their labor produces.
Through these exploitations, Saudi Arabia integrates soft power strategies to maximize their worldwide impact. Joseph Nye's concept refers to a country’s ability to sway the opinion of others by using charm, reasoning, and non-coercive strategies like ideals, culture, and diplomacy (Gomichon, 2013). By hosting international sporting events like the Olympics or FIFA World Cup, global awareness increases the nation’s stature and power. Investments made by the PIF in sports, especially in high-profile events, might be interpreted as an effort to improve its position and reputation internationally (Smith, 2022). Similarly, an important component of soft power is the capacity to reshape stories and influence the coverage by the media. Hosting major sporting events provides Saudi Arabia the chance to shape public opinion, create favorable images, and control narratives – all of which support its soft power strategy and distract from unwanted press.
The kingdom’s capability to monopolize the world of sport became unmistakable following the $2 billion acquisition of LIV Golf in 2021. Unlike ever before, the authoritarian government purchased power over a cherished American institution, the PGA Tour, in order to improve its reputation (Berman, 2023). Since 1968, the Professional Golfers’ Association has been the pinnacle of golf, facing no competition domestically or abroad. The best players, highest paying sponsors, and international attention all laid on the singular entity. Yet uniquely their model differed from any other professional sporting body around the world. The principal revenue stream is derived from tournament prize money, wherein a fixed purse is awarded to competitors depending on their placement in the given event (Mrowice, 2022). There is no guarantee that a player will be compensated annually. As a result of this, LIV disrupted the once sustainable standard, with its introduction into professional golf assuring a yearly income with the potential for earning bonuses for winning tournaments. With this new configuration, the PIF backed league was able to attract global stars such as Phil Mickleson, Dustin Johnson, and Brooks Koepka offering them generational wealth (Glover, 2023). Rather than promoting personal initiative and individual achievement, Saudi Arabia has transformed golf into a power struggle between the most dominant capitalist groupings over supremacy. The disruption within the sport stunned the leadership of the PGA, forcing them to search for solutions that would keep them as the apex of golf.
In 2023, the two powers in golf merged, bringing up countless problems over the questionable business agreement. Prior to the deal, the PGA Tour commissioner Jay Monahan said participating in the contentious circuit was equivalent to endorsing those involved in 9/11 promising the exile of players who switch competitions (The Athletic, 2023). The unconventional merger between the PGA Tour and LIV Golf changes the landscape of professional golf, depicting Saudi Arabia’s attempts to influence international sports through major investments. Both tours, respectively, are operating under their own name and opposing landscapes. There are very few legally-binding provisions in the PGA’s tentative agreement with Saudi Arabia’s sovereign wealth fund, including a nondisparagement agreement and a promise to drop all lawsuits against them (Draper, 2023). Controversy followed the deal as both players and staff associated with the PGA Tour were prevented from expressing any sort of criticism towards Saudi Arabia (Elsborg, 2023). Following this, the District of Justice and Senator Richard Blumenthal opened an investigation into the actions “about how a brutal, repressive regime can buy influence–indeed even take over–a cherished American institution simply to cleanse its public image” (Berman, 2023). The unconventional partnership undoubtedly altered the professional golf landscape and highlighted Saudi Arabia’s aspirations to exert financial dominance across sports globally.
With LIV golf tournaments, in addition to other high-profile sporting events promised to be held in Saudi Arabia, they are marketing themselves as a sports destination in an effort to draw fans and tourists. With its unique emotional appeal, sports are a powerful force that draw large numbers of visitors. Aside from providing various types of diversion and a sense of national pride, cultural attractions, sporting spectacles, and entertainment events serve as a means of meeting the aspirations and enjoyment of the Saudi public in the absence of political rights and civil liberties (Elsborg, 2023). The sporting body now functions as a tool to produce thrilling events in the consumerism-driven society of today, functioning as a walking billboard in addition to a source of entertainment. It is seen most clearly through the example of soccer superstar Lionel Messi and his three year, $25 million agreement with the country simply promoting tourism via social media. Within the arrangement, similar to the deal struck with the PGA Tour, Messi is restricted from slandering the Kingdom in any form, restricting his ability to speak freely (Elsborg, 2023). With this sanctioned promotion, along with many other forms of advertisement, Saudi Arabia is expecting to have 100 million visitors by 2030; comparatively, in 2021 they had 64 million visitors (The Economist, 2023). The connection between economic principles and the expansion of tourism within a country is heavily linked. The interaction is a reflection of the market-driven dynamics presented within tourism.
Through Saudi Arabia’s mass investment in sport, capitalism has transformed into a pure order of destruction. The trust in the ‘eternal values of capitalism’ is no longer upheld by sport; rather, the critical, competition-oriented mentality is being destroyed, implying the belief of a free and just society is no longer achievable (Simonoviç, 2016). The stadium has transformed into a psychological arena since manipulation has moved from the ideological to the mental domain. Sports are a crucial instrument that Saudi Arabia is strategically using to improve its public image on an international level. In an effort to establish itself as a global economic authority, the Kingdom has been heavily investing in the biggest leagues, teams, and names in sports. By linking itself with the positive aspects of sports, Saudi Arabia hopes to divert attention from divisive subjects and build a more favorable reputation around the world in order to oppress their competition. Evidently, when a nation’s universal powers are developed and there is a chance to transcend the current world and create a new one, sport becomes war. This is especially true when the competition involves the development of a nation’s ability to overcome obstacles and create a dominant force.
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