Saudi Arabia's Sports Ambitions Face Reality Check

The news that Saudi Arabia's Public Investment Fund (PIF) is preparing to withdraw funding from LIV Golf has sent shockwaves through the sporting world and raised fundamental questions about the kingdom's broader sports investment strategy. According to golf industry sources, this potential exit from what was once considered the crown jewel of Saudi sports investments could signal a significant shift in approach.

The LIV Golf Conundrum

LIV Golf was launched with huge fanfare in 2022 with the explicit aim of disrupting the established PGA and DP World Tours. Despite billions of dollars of investment, the project has been what industry insiders describe as a "huge loss leader." The Athletic reported Wednesday that people inside the sport are scrambling to figure out their futures amid the uncertainty.

The consequences for golf could be seismic if PIF completely exits the league, but the fund's apparent shift also has potential implications for other sports partly bankrolled by Saudi Arabia through various mechanisms. Notably, PIF laid out its strategy Wednesday for its wide range of investments over the next five years, yet did not mention "sports" directly in its news release — an omission that seemed small yet was notable enough to draw attention throughout the sporting world.

PIF did not comment formally when contacted by The Athletic, though a source familiar with the firm's thinking who was not authorized to speak publicly said it remains fully committed to sports. However, with so much uncertainty surrounding LIV, its most high-profile sporting project, questions naturally arise about PIF's investments in other sports.

Soccer: The Centerpiece of Saudi Investment

There is no bigger sport globally than soccer, and Saudi Arabia arguably made it the centerpiece of its investment strategy, despite the billions spent on LIV Golf. Initially, this took the form of aggressive spending in the Saudi Pro League, which is overseen by the Ministry of Sport rather than PIF.

The league saw vast sums poured into player acquisitions as part of the country's Vision 2030 project. Cristiano Ronaldo's move to Al Nassr at the end of 2022, with a deal worth £173 million ($234 million) a year, set the tone. He was followed by other high-profile names including Karim Benzema, Neymar, and Sadio Mane.

"There has been significant spending this season, too, but the big checks are not being signed at the same rate," The Athletic reports. One hope when PIF acquired 75 percent stakes in four clubs (Al Nassr, Al Hilal, Al Ahli and Al Ittihad) in June 2023 was that it would build them up to attract foreign investment, but that foreign cash has yet to materialize.

Much more crucial to creating a long-term soccer impression is the country's decision to host the men's World Cup in 2034, a project bankrolled by its Ministry of Sport rather than PIF. Saudi Arabia was awarded the tournament uncontested in December 2024, indicative of a recent trend that has seen the country pivot away from directing money overseas and focus more on events that bring direct domestic benefit.

Tennis: A Billion Dollar Investment

Saudi Arabia's investment in tennis, which amounts to more than $1 billion, has taken several different forms. When LIV Golf launched, tennis governing bodies worried about a similar playbook coming for their sport. However, Saudi Arabia's approach has been different.

Instead of creating a rival tour, it focused on hosting major events. Saudi Arabia is set to host a 56-player men's event for one week starting in 2028. Through PIF, Saudi Arabia became a major sponsor first of the ATP Tour and then of the WTA Tour, buying the naming rights to the rankings on both tours.

In 2024, Saudi Arabia's Ministry of Sports and its Tennis Federation signed a three-year deal with the WTA Tour to host its marquee event, the season-ending WTA Tour Finals from 2024 to 2026. The event has offered record prize money of more than $15 million per year, with the $5.235 million Elena Rybakina won for beating Aryna Sabalenka in the 2025 final being the largest winner's check in women's sports history.

However, as Saudi Arabia moved closer to the deal with the ATP Tour for the Masters event, its enthusiasm for the WTA Tour Finals waned. In November, the chief executive of the WTA Tour, Portia Archer, expressed enthusiasm for extending the deal by one or two years beyond the original term, but Saudi officials did not share that enthusiasm.

Boxing: Passion-Driven Investment

Saudi Arabia has been involved in major professional boxing since 2018, but the landscape shifted significantly when Turki Al-Sheikh emerged as the sport's leading Saudi figure in 2023. The chairman of Saudi Arabia's General Entertainment Authority has brokered deals with major promoters and personally purchased the historic Ring Magazine for a reported $10 million.

Eddie Hearn, a leading UK promoter, believes Saudi investment will continue in boxing despite the uncertainty around LIV Golf. "He has a huge passion for boxing," Hearn told The Athletic. "That's the truth. If he didn't, I think he would have left."

Al-Sheikh has secured backing from PIF but uses his own position in the government to gain investment. His passion for boxing is seen as a key factor in the continuation of investments, though there is recognition from boxing industry insiders that events are now being looked at with a commercial eye rather than simply paying whatever it takes to obtain big fights.

"There is definitely an element that it has to make some kind of sense, and there has to be a value to Saudi to do those events — and it is how much value?" Hearn said. "Now they're probably looking to run it more as a business."

Other Sports Investments

Saudi Arabia's sports investments extend across numerous disciplines:

• Olympic Aspirations: Although no senior Saudi official has publicly stated the kingdom wants to host the Olympics, its actions have spoken volumes. The country secured the 2034 Asian Games, 2029 Asian Winter Games (since relocated), 2027 Pan Arab Games, and the first Olympic Esports Games (since canceled).
• Formula 1: Saudi Arabia hosts the Saudi Arabian Grand Prix and is building a new track in Qiddiya as part of Vision 2030. PIF is also heavily invested in electric motorsport through Formula E, Extreme H, and E1 powerboat racing.
• Cycling: Saudi Arabia remains interested in cycling, with the Ministry of Sport viewing the activity as worth continued investment due to its potential health benefits. The nation's tourism department is co-title sponsor of the Australian team Jayco-AlUla.
• MMA: PIF invested more than $100 million in the Professional Fighters League (PFL) in August 2023, which then purchased Bellator. The PFL launched PFL MENA and announced that all fights in its Super Fight division would be hosted in Saudi Arabia.
• Broadcasting: In February 2025, SURJ Sports Investment acquired a 10 percent stake in DAZN for $1 billion, strengthening Saudi Arabia's position in sports broadcasting.

Shifting Strategy

The apparent shift away from LIV Golf investment reflects a broader trend in Saudi Arabia's sports strategy. The overseas portion of PIF's investments hit a high of 30 percent in 2020 but has been in steady decline since. Company filings to the end of 2022 showed investments in countries beyond Saudi Arabia and other Gulf Cooperation Council members totaled 23 percent of PIF's portfolio. Two years later, that had dropped to 19 percent.

As Saudi Arabia prepares to host the 2034 World Cup, it is reasonable to expect the country to plow significant sums into staging the tournament, even as it reevaluates its external sports investments. The kingdom appears to be shifting toward investments that bring direct domestic benefits rather than global sporting disruption.

The future of Saudi sports investment remains uncertain, but the potential withdrawal from LIV Golf suggests a more pragmatic, commercially-focused approach may be emerging after years of aggressive spending aimed at establishing the kingdom as a global sports powerhouse.