[Oil Money on the Greens]②Saudi PIF Makes All-Out Sports Investments...Dominating the Global Market with 'Oil Money'

Saudi Arabia's 'Sports Washing' Strategy
Expanding Global Influence in Sports and Cultural Content
LIV Golf: A New Challenge to Traditional Golf Norms

The Saudi Arabian Public Investment Fund (PIF) is continuing its all-out investment in the global sports market, leveraging its 'oil money.' By injecting capital into a wide range of sports-including football, boxing, esports, Formula 1, and golf-the fund is accelerating its efforts to build a 'sports empire.'

According to industry sources on August 18, the PIF is simultaneously recruiting global superstars such as Cristiano Ronaldo (Portugal) and securing major sporting events. Notable examples include the launch of LIV Golf in 2021 and the opening of the '2025 Esports World Cup (EWC)' in Riyadh on July 8. The total prize pool amounts to about $70 million (approximately 96.6 billion KRW), making it the largest in esports history. This year’s event featured participation from over 200 teams and more than 2,000 players from around the world, with Ronaldo serving as the ambassador. Saudi Arabia also plans to co-host the Esports Olympics with the IOC in 2027.

Crown Prince and Prime Minister Mohammed bin Salman is a key figure driving the 'Saudi Vision 2030'. Photo by AFP and Yonhap News

The driving force behind these large-scale investments is 'Saudi Vision 2030,' spearheaded by Crown Prince and Prime Minister Mohammed bin Salman. The initiative aims to move away from oil dependency and increase non-oil sector revenues by six times, with sports identified as a key sector.

In October 2021, the PIF acquired Newcastle United of the English Premier League (EPL), and in December 2022, signed Ronaldo to Al Nassr with an annual salary of 200 million euros (about 325.6 billion KRW). The fund has also secured hosting rights for the 2034 FIFA World Cup.

Cristiano Ronaldo, who transferred to Saudi professional football, is serving as an ambassador for Saudi sports. Photo by Reuters and Yonhap News Agency

However, there has been growing criticism. The Saudi monarchy, long accused of corruption and human rights abuses, is now facing allegations of 'sports washing'-using sports to launder its image. In 2018, suspicions were raised over the assassination of Washington Post columnist Jamal Khashoggi. International human rights organization Human Rights Watch criticized Saudi Arabia’s sports investments as an attempt to divert attention from serious human rights violations.

The PIF is the world’s largest sovereign wealth fund, with assets of approximately $930 billion (about 1,283 trillion KRW). Since 2021, it has been focusing heavily on investments in golf. The governor is Yasir Al-Rumayyan, who also heads Saudi Arabia’s state oil company Aramco. Leveraging his vast financial resources and personal connections, he is expanding his influence in the global sports industry. He is known to have close ties with former US President Donald Trump, and LIV Golf held a tournament at Trump National Golf Club in Bedminster, New Jersey, in 2022.

Yasir Al-Rumayyan, Governor of PIF (right), is expanding his influence by leveraging his connections with world leaders such as US President Donald Trump. Photo by AP and Yonhap News

LIV Golf has drawn attention for its unconventional operations that break with traditional golf norms. The tournament features 54 participants and is played over three rounds instead of four. There is no cut, with the winner receiving $4 million and even the last-place finisher taking home $50,000. Players are allowed to wear shorts, and all participants finish their rounds at roughly the same time using a shotgun start format. Unlike the PGA Tour, LIV Golf also includes a team competition.

This year, LIV Golf held tournaments in Riyadh, Adelaide (Australia), Hong Kong, Singapore, South Korea, and other Asian countries. However, its achievements remain limited. Rather than profitability, the events primarily serve to showcase Saudi Arabia’s immense financial power. The total prize pool for a single tournament is $25 million, and this is expected to increase to $30 million next year.

World No.1 Jon Rahm serves as the face of LIV Golf. Photo by AP and Yonhap News

Public interest also remains limited. On the final day of the LIV Golf Championship in Chicago last September, the number of households tuning in was 89,000-significantly lower than the 657,000 households that watched the women’s Solheim Cup, held during the same period. While LIV Golf tries to create a festive atmosphere by playing music at the venues, there are concerns that the events could devolve into exclusive 'money-driven parties.'

Jung Hwalyeong, a commentator for SBS Golf, pointed out, "LIV Golf is struggling to gain popularity, and it appears to be less popular now than at its launch. The lack of a cut means every player receives prize money, and since no world ranking points are awarded, players have less motivation." He added, "With only three rounds and the shotgun format, it will be difficult for LIV Golf to achieve long-term success. There is a need to create larger-scale tournaments and to introduce changes to the competition format."