Current:Home > FinanceIn 2023, the Saudis dove further into sports. They are expected to keep it up in 2024 -LegacyCapital
In 2023, the Saudis dove further into sports. They are expected to keep it up in 2024
View
Date:2025-04-16 18:55:17
At the dawn of 2023, the specter of Saudi Arabia’s growing influence on pro golf — and sports in general — served not only as a moral conundrum for players and their fans, but also, some argued, as an existential threat to the multibillion-dollar professional-sports industry itself.
Twelve months later, it’s a different conversation, now virtually devoid of concern about the supposed menace of “sportswashing” and the line between “right” and “wrong,” and more fixed on just how rich the Saudis might make all these athletes before they’re done investing.
Two major events sparked the change: The June 6 announcement that the PGA Tour was looking to go into business with the very Saudi group that was paying for the kingdom’s LIV Golf, which the tour had labeled as a threat. Then, six months later, the decision by the world’s third-ranked player and an early resister of LIV, Jon Rahm, to move to that league for a contract reported in the neighborhood of $500 million.
Making less-dramatic but almost equally important headlines were the continuing talks between the Saudis and leaders in pro tennis — and Saudi Arabia’s ongoing push into global soccer, reflected most vividly by a decision that smoothed the way for the Saudis to host the sport’s biggest event, the World Cup, in 2034.
“You’re investing in sports, which is one of the few growth industries in the world,” Dan Durbin, director of the Institute of Sports, Media and Society at USC, said of the Saudi strategy. “It is, as far as we can see, an almost endless growth industry.”
FILE - Phil Mickelson reacts during a news conference for the LIV Golf Team Championship at Trump National Doral Golf Club, Wednesday, Oct. 26, 2022, in Doral, Fla. (AP Photo/Lynne Sladky, File)
The conversation over golf went front-and-center when Saudi Arabia’s Public Investment Fund, or PIF, the nation’s sovereign wealth fund, was laying the groundwork for LIV in early 2022. Six-time major winner Phil Mickelson’s interview, in which he called the Saudis “scary (expletives)” — a reference, in part, to the murder of journalist Jamal Khashoggi — set the dividing line in what was viewed as a good vs. evil stare down between the status quo and the Saudi disrupters.
All but ignored in the debate was how ingrained Saudi Arabia is in virtually all parts of the world economy — the Saudis gain most of their influence by supplying around 15% of the world’s petroleum — and the inroads the kingdom was already making into sports.
One of soccer’s biggest stars, Cristiano Ronaldo, had joined a Saudi team backed by the same investment fund that supported LIV in a deal worth a reported $200 million a year. The Saudis made a reported $500 million-a-year play to recruit another soccer icon, Lionel Messi, to its upstart domestic league. (Messi turned them down.) The PIF wealth fund owns the Premier League’s Newcastle soccer club.
As the calendar turns to 2024, there’s no sign of this slowing. The Saudis host a Formula One auto race that has come under scrutiny and had reportedly been considering buying the entire league from Liberty Media Corporation — a deal that didn’t take off because Liberty didn’t want to sell. They are looking to invest some $5 billion into cricket’s Indian Premier League with an eye on expanding it into other countries.
FILE - Red Bull driver Sergio Perez of Mexico stands next to his car after he won the Saudi Arabia Formula One Grand Prix at the Jeddah corniche circuit in Jeddah, Saudi Arabia, Sunday, March 19, 2023. (AP Photo/Luca Bruno, Pool)
The ATP, which runs men’s professional tennis, has a five-year deal to hold one of its biggest events in the Saudi port city of Jeddah. Talks between the Saudis and the women’s tour are reportedly ongoing. In a sign of how the conversation has shifted, Billie Jean King, who began the fight for equal pay for women in sports in the 1970s, has said bringing the sport to the kingdom might not be all bad despite its long record of repressing women’s rights.
FILE - Billie Jean King applauds next to Canada’s Leylah Fernandez, who won the final singles tennis match against Italy’s Jasmine Paolini, during the Billie Jean King Cup finals in La Cartuja stadium in Seville, southern Spain, Sunday, Nov. 12, 2023. (AP Photo/Manu Fernandez, File)
“I don’t think you really change unless you engage,” she said earlier this year.
Durbin sees the kingdom’s embrace of sports as a move for Saudi Arabia to be viewed as more than an oil-producing kingdom with a bad human-rights record. Some might call that the quintessential definition of “sportswashing.”
“For decades, sports has been the center of soft diplomacy,” he said. “You try to create a positive response and feeling about your ethics because you’re holding to the rules of sports.”
The end of 2023, and all of 2024, figure to be dominated by the results of months-long negotiations between the PGA Tour and the Saudi investment fund, which will ultimately determine the fate of LIV.
Rahm’s move could be seen as a preemptive gamble based on acknowledgment of the reality that golf will eventually come together again (and if that turns out to be the case, there’s nothing wrong with having an extra $500 million in the bank when it does).
FILE - In a photo provided by LIV Golf, Jon Rahm, left, and LIV Golf Commissioner and CEO Greg Norman pose for a photo in New York on Thursday, Dec. 7, 2023. (Photo by Scott Taetsch/LIV Golf via AP, File)
One of the Spaniard’s biggest worries about moving was that he might get excluded from the Ryder Cup. Golf’s prestigious team event — which pits the best from the U.S. against the best from Europe and where none of the players are paid to play — was considered more-or-less off limits to those who defected to LIV, especially on the European side.
Now, even LIV’s biggest detractor at the outset, four-time major champion Rory McIlroy, has suggested the Ryder Cup gatekeepers consider easing their stance against LIV players competing for Europe.
His take on Rahm: “You can’t judge someone for making a decision that they feel is the best for them,” he told Sky Sports earlier this month. “Is it disappointing to me? Yes. But the landscape of golf changed on June 6.”
FILE - Rory McIlroy, of Northern Ireland, walks on the third green during the third round of the Tour Championship golf tournament, Saturday, Aug. 26, 2023, in Atlanta. (AP Photo/Mike Stewart, File)
In a telling sign of the impact Saudi Arabia’s entrance into the golf scene has made, the top 10 players on the PGA Tour combined made $86.6 million in prize money in the season that ended in 2022; in 2023, that number rose to $124.1 million. Meanwhile, the top 10 on the LIV Tour made $159.4 million in 2023.
It helps explain why, in 2024, the debate in golf and the rest of the sports world doesn’t figure to center on whether all this change has been a good thing — but rather, on how big a piece of the sports universe the Saudi kingdom can buy.
“What you find is that when you’re lining your pocket with some of that money, then it can’t be ‘dirty’ money anymore,” Durbin said.
___
AP sports: https://apnews.com/sports
veryGood! (793)
Related
- Angelina Jolie nearly fainted making Maria Callas movie: 'My body wasn’t strong enough'
- Sam Heughan Jokes Taylor Swift Will Shake Off Travis Kelce After Seeing Him During Eras Tour Stop
- The carnivore diet is popular with influencers. Here's what experts say about trying it.
- All-access NHL show is coming from the makers of ‘Formula 1: Drive to Survive’
- Senate begins final push to expand Social Security benefits for millions of people
- A 102-year-old World War II veteran dies en route to D-Day commemorations in Europe and is mourned
- Lakers targeting UConn's Dan Hurley to be next coach with 'major' contract offer
- US antitrust enforcers will investigate leading AI companies Microsoft, Nvidia and OpenAI
- Audit: California risked millions in homelessness funds due to poor anti-fraud protections
- Cucumbers linked to salmonella outbreak that has spread to 25 states
Ranking
- Chuck Scarborough signs off: Hoda Kotb, Al Roker tribute legendary New York anchor
- Charges against warden and guards at Wisconsin’s Shawshank-like prison renew calls to close it
- Kentucky Democratic governor pushes back against Trump-led attacks on electric vehicles
- Coach's Jonie Bag is Summer 2024's Must-Have Accessory; Here's Where to Buy It Before It Sells Out
- Report: Lauri Markkanen signs 5-year, $238 million extension with Utah Jazz
- Nvidia stock split: Investors who hold shares by end of Thursday trading to be impacted
- When Calls the Heart's Mamie Laverock “Fighting Hard” in Hospital After Balcony Fall
- Save 50% on Aerie Swimwear, 30% on Frontgate, 25% on Kiehl's, 50% on REI & More Deals
Recommendation
Breaking debut in Olympics raises question: Are breakers artists or athletes?
Black Music Month has evolved since the 1970s. Here’s what you need to know
Millie Bobby Brown, Bon Jovi's son and the truth about getting married in your early 20s
Israeli settlers in the West Bank were hit with international sanctions. It only emboldened them
Michigan lawmaker who was arrested in June loses reelection bid in Republican primary
NTSB begins considering probable cause in a near-collision between FedEx and Southwest planes
Tim Scott, a potential Trump VP pick, launches a $14 million outreach effort to minority voters
We love competitiveness in men's sports. Why can't that be the case for the WNBA?
Like
- Jury selection set for Monday for ex-politician accused of killing Las Vegas investigative reporter
- The Census Bureau failed to adequately monitor advertising contracts for 2020 census, watchdog says
- World hits 12 straight months of record-high temperatures — but as warming continues, it'll be remembered as comparatively cold