EPL Soccer Club Incident Ronaldo·Neymar Acquisition
Saudi Arabia's Moves Stir 'Sports Washing' Controversy
Aiming for Domestic Economic Diversification and Political Stability
"If Saudi Arabia's gross domestic product (GDP) increases by about 1% through 'sports washing,' I will continue sports washing."
'Saudi's power broker' Crown Prince Muhammad bin Salman said this in an interview with Fox News in the United States on the 21st (local time). In response to the controversy over sports washing, which refers to diverting attention from the country's human rights violations to sports as Saudi Arabia has recently poured huge funds into sports, he responded as if it were no big deal.
He said, "(I) don't care about (such controversies). I am aiming for an additional 1.5% GDP growth rate. Tell us what you want; we will buy it and take the 1.5% growth rate."
Watching Ronaldo's Matches in Saudi Arabia... The Influence of 'Oil Money'
Saudi Arabia is exerting tremendous influence in the global sports market based on 'oil money.'
Football is a representative example. According to global consulting firm Deloitte, the amount spent by Saudi Professional League (SPL) clubs during the 2023 summer transfer window was $957 million (about 1.3 trillion KRW), ranking second in the world after the English Premier League (EPL), surpassing other major European leagues such as Spain, Germany, and Italy.
Saudi Arabia acquired Newcastle United, a major EPL club, and this year has signed numerous global stars to its domestic league, including Cristiano Ronaldo (Al Nassr), Neymar (Al Hilal), and Karim Benzema (Al Ittihad).
Saudi Arabia is also aiming to host the World Cup. The goal is to host it in 2030 or 2034. Initially, a joint hosting plan with Egypt and Greece was considered, but it is reported that the goal has shifted to solo hosting.
Saudi Arabia is investing funds not only in football but also in various sports such as golf, tennis, and boxing. LIV, sponsored by Saudi capital, announced a surprise merger plan with the hostile U.S. Professional Golfers' Association (PGA) in June. Recently, reports have emerged that the PGA Tour and LIV Series are expected to hold integrated tournaments starting in 2025.
Saudi Arabia's Goal of Economic Diversification... Developing Tourism Industry through Sports
The reason Saudi Arabia is pouring huge funds into sports is precisely the economy. It is to diversify the economic structure. Under 'Vision 2030,' led by Crown Prince bin Salman, the economic structure that relied solely on oil sales is being transformed based on future new industries to make Saudi Arabia a global 'sports mecca.'
In fact, Crown Prince bin Salman explained in the Fox News interview that "to diversify the economy, all sectors such as mining, infrastructure, manufacturing, transportation, and logistics must operate," and that as part of the strategy to grow tourism, they are attracting sports events and organizing related activities. Saudi Arabia also announced efforts to host the 2029 Asian Games along with solo hosting of the World Cup.
Crown Prince bin Salman emphasized the importance of tourism in the Saudi economy. He said, "The share of tourism in Saudi Arabia's economy was 3% of GDP but has now risen to 7%. Especially, sports increased from 0.4% in the past to 1.5% now. That is economic growth, jobs, and tourism." He added that 40 million tourists visited Saudi Arabia last year, and they plan to increase this number to 100 million, or even up to 150 million, by 2030.
According to World Bank (WB) data, Saudi Arabia's GDP exceeded $1 trillion for the first time last year, and GDP per capita grew by 50% in two years to $30,436. The International Monetary Fund (IMF) stated in a June report that "Saudi Arabia was the fastest-growing country among the Group of 20 (G20) last year with an economic growth rate of 8.7%," crediting oil production along with private consumption and non-oil private investment for driving economic growth.
51% of the Population Under 30... "Seeking Political Stability through Sports"
Considering that the majority of Saudi citizens are young, sports are also used as a tool for political stability. According to the Saudi General Authority for Statistics, Saudi Arabia's total population was 32.2 million as of May, with 51% under the age of 30. The Saudi government reports that 8 out of 10 young citizens either play football themselves or watch football matches.
Simon Chadwick, a professor at SKEMA Business School in France, told CNN that the Saudi government appears to be promoting sports to prevent the spread of radicalism or anti-government sentiment among youth, which could lead to events like the Arab Spring, and to soothe tensions.
While the football industry creating jobs and income for young workers is a significant issue, Professor Chadwick assessed that protecting the royal family is a much more important factor.
In fact, it is reported that cases of punishment for posting negative opinions about the state or government on social media have significantly increased within Saudi Arabia. Human rights organization Amnesty International also stated that freedom of expression is severely suppressed inside Saudi Arabia, and that the number of executions carried out last year reached 196, the highest in 30 years.
Growing Opacity and Continued Concerns over Sports Washing
While Saudi Arabia's sports investments attract great attention, concerns continue as well.
CNN pointed out that "Saudi Arabia is trying to shake up the order of the football world," and that due to the lack of transparency in Saudi Arabia's structure, new governance-related problems are being created in the sports sector. Professor Chadwick expressed concern, saying, "Without an independent body managing all leagues, no one can be sure what the accurate information is," and "Player transfer values and salary information could be inflated or downplayed for political purposes."
Meanwhile, although Crown Prince bin Salman seemed indifferent, the controversy over Saudi sports washing continues, and the world is expected to closely watch the impact of Saudi funds on the sports market in the future.
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