600 Trillion 'Oil Money' Golf Tournament... Why Are Middle Eastern Oil Tycoons Betting Big on Sports?

Saudi Crown Prince Bin Salman Sponsors LIV Golf Invitational Opening
'Last Place Also Gets 150 Million Won' Money Festival... 'Astronomical Prize Money' Raises Concerns Over PGA Player Exodus
Attracting Foreign Tourists, Boosting Domestic Consumption, Diversifying Economy Beyond Oil Dependence
'Sportswashing' Criticism Aimed at Distracting from Human Rights Abuses... NYT: "Oil Money Pours In, Marking Peak of Sportswashing"

Crown Prince Mohammed bin Salman of Saudi Arabia [Photo by Yonhap News]

[Asia Economy Reporter Han Seung-gon] The LIV Golf season opener, sponsored by Saudi Arabia's sovereign wealth fund (PIF), concluded on the 12th. Some view the tournament, backed by oil money, as an 'unprecedented money extravaganza,' with remarks like 'money chasing money' being circulated. The reason for such comments is that the PIF is known to have assets of about 600 trillion won.

The total prize money for the LIV tournament is approximately 32.1 billion won. Golfer Charley Schwartzel earned 6.1 billion won by winning this tournament. Even an unknown American golfer who finished last with 24 over par took home 150 million won in prize money. Dustin Johnson, the world number one, made headlines before the tournament by choosing to join the LIV series, reportedly receiving over 128.4 billion won.

As a result, the PGA Tour commissioner (the highest authority responsible for maintaining the dignity and order of professional sports), in an interview with CBS in the U.S. on the 13th (Korean time), criticized, "Players participating in LIV Golf are not qualified to compete in the PGA Tour. There will be more sanctions for players who join LIV Golf in the future."

Ultimately, the PGA pulled out the trump card of 'suspending playing rights for LIV participants,' but it seems the golfers' dilemma won't last long in the face of the record-breaking prize money offered by LIV tournaments.

It is known that star players like Bryson DeChambeau and Patrick Reed are likely to participate in the next tournaments after receiving astronomical contract fees. This raises concerns that the historically and traditionally prestigious PGA might suffer significant damage from Middle Eastern oil money. The LIV series will hold a total of eight tournaments until October in the UK, the U.S., Thailand, and Saudi Arabia.

Dustin Johnson, the world's No. 1 male golfer, joined the LIV Golf Invitational Series. Photo by Yonhap News Agency

◆ Unimaginably Massive 'Oil Money'... Why Are Middle Eastern Oil Tycoons Interested in Sports?

Given the situation, some question why Saudi Arabia (Saudi) is pouring so much oil money into this. Considering that golf is not Saudi's national sport, such questions and perplexity deepen.

This is not the first time Saudi has shown interest in sports. The world-renowned car race 'Dakar Rally' was also hosted by Saudi in 2020. AFP reported that Saudi is pouring billions of dollars into attracting international sports events to improve its national image.

The agency analyzed that Crown Prince Mohammed bin Salman, the de facto ruler of Saudi, aims to use sports to attract foreign tourists and stimulate domestic consumption, diversifying the economy that heavily depends on oil. Crown Prince bin Salman is a major investor worldwide through the PIF.

However, foreign media see the flashy sports events as primarily aimed at preemptively preventing public unrest caused by economic recession and soaring youth unemployment. Additionally, Crown Prince bin Salman remains implicated in the assassination of Jamal Khashoggi, a dissident journalist affiliated with The Washington Post.

Recently, The New York Times reported, "Saudi's power broker Crown Prince Mohammed bin Salman has poured trillions of won of oil money into mega sports events over recent years to improve the country's deteriorated international image caused by the 2018 killing of an anti-government journalist and the Yemen civil war, reaching the peak of sportswashing."

Social activists also criticized the Saudi ruling class for hosting sports events to soften the long-standing image of a human rights-abusing country through 'sportswashing.'

Sportswashing refers to the use of sports by individuals, corporations, or countries to improve unfavorable public opinion or reputation. The term began to be used in 2015 when Azerbaijan aggressively hosted international sports events. Azerbaijan, well known as an oil-rich country, is also marred by torture and human rights abuses.

Qatar and the United Arab Emirates are also not free from such criticism. Qatar, the host of the 2022 World Cup, has invested over $200 billion solely in building World Cup stadiums. Additionally, through its sovereign wealth fund Qatar Sports Investments, Qatar acquired the popular French football club Paris Saint-Germain FC in 2011.

Previously, Qatar faced criticism from various countries after reports emerged that 6,500 migrant workers died since 2010 due to World Cup stadium construction. Qatar is also notorious for the 'kafala' system, often called modern slavery.

The UAE, also criticized for human rights abuses, drew global attention when Mansour bin Zayed Al Nahyan, the president's half-brother, acquired England's Manchester City FC in 2008 for 370 billion won.

Golf emperor Tiger Woods. Woods declined Live's 1 trillion won signing bonus offer.

◆ "Money Won't Get You What You Want!" Global Athletes Directly Criticize 'Sportswashing'

In Saudi Arabia, not only the Dakar Rally but also women's wrestling matches, which were unimaginable to be held there in the past, the 2019 eco-friendly car race 'Formula E,' tennis matches, and boxing matches featuring top heavyweight fighters Anthony Joshua (UK) and Andy Ruiz Jr. (Mexico) have drawn global attention to Saudi Arabia.

Considering these situations, Middle Eastern oil tycoons are using oil money to host large-scale sports events, but persistent criticism suggests that sportswashing lies behind this. Amid such public opinion, golf emperor Tiger Woods, whose fortune exceeds 2 trillion won, rejected LIV's 1 trillion won contract offer, and Rory McIlroy, one of the most popular professional golfers, fiercely criticized LIV, saying, "Money won't get you what you want."

Consequently, sports stars associated with oil money often face various criticisms. A representative case is the behavior of global football star Lionel Messi (Paris Saint-Germain).

Al-Khatib, Saudi's Minister of Tourism, posted a photo on Twitter on the 9th of last month (local time) showing Messi arriving at King Abdulaziz Airport in Jeddah, a city on the Red Sea coast, welcoming his visit. Messi also posted a photo on Instagram looking at the sunset from a yacht on the Red Sea, tagging #VisitSaudi, referring to 'Visit Saudi,' a subsidiary of the Saudi tourism authority.

Lionel Messi with Muhammad Al Saud, Saudi princess and Deputy Minister of Tourism [Photo by Yonhap News]

On the 11th, Mohammed Al Saud, a Saudi princess and deputy minister of tourism, posted a photo on Twitter with Messi, writing, "Had a wonderful time around the historic city of Jeddah with Messi and his friends." On the 12th, the British daily The Guardian criticized Messi's recent appearance on Saudi authorities' promotional social media, saying he is being used as the 'face' of a regime that has oppressed human rights.

The Guardian pointed out that through this Jeddah visit, Messi is implicated with Saudi, which faces various human rights exploitation allegations, including journalist killings and oppression of LGBTQ and women's rights activists. It analyzed that Saudi is attempting sportswashing by using Messi to divert attention from the country's human rights situation. The Guardian also criticized, "2022 was a year of sportswashing, starting with Beijing and ending with Qatar."

Meanwhile, there is also a view that sportswashing causes the Streisand effect. This refers to the counterintuitive phenomenon where attempts to artificially delete or censor publicly known information cause it to spread even more widely. For example, the hosting of the LIV Golf tournament in Saudi Arabia might raise suspicions about hidden human rights abuses. Ben Sunderland, BBC Sports Editor, emphasized, "Countries pursuing sportswashing might experience the Streisand effect, where the very things they tried to hide attract more attention."