Saudi Crown Prince Mohammed bin Salman (MBS) recently announced a 300 million euro sponsorship deal to rename Atlético Madrid’s stadium in Spain as the “Riyadh Air Metropolitano.” This lucrative deal, backed by Saudi Arabia’s Public Investment Fund (PIF) through Riyadh Air, is part of a broader strategy by MBS to elevate the kingdom’s international profile through high-profile sports sponsorships. However, critics argue that this focus on “sportswashing” detracts from more pressing domestic concerns, especially as Saudi Arabia privatizes essential services, like healthcare, to address budget constraints.
High Costs for International Sponsorship
The Riyadh Air deal is the most significant sponsorship in Atlético Madrid’s history, extending through a ten-year contract that includes perks like creating a premium “Riyadh Air Club” hospitality section at the stadium. Additionally, Riyadh Air already serves as Atlético’s main shirt sponsor, with a contract worth an estimated 40 million euros annually through 2027. This partnership places Atlético Madrid among Europe’s top clubs with airline sponsorships, reflecting MBS’s ambition to solidify Saudi Arabia’s presence in global sports.
Yet, this investment comes at a time when Saudi Arabia faces economic pressures, with public funds increasingly directed toward high-profile projects abroad rather than addressing crucial needs at home.
Privatization of Healthcare Amid Budget Shortfalls
The 300 million euro sponsorship raises questions about MBS’s financial priorities, particularly given recent cuts to Saudi Arabia’s healthcare sector. To address budget gaps, the Saudi government has turned to privatization, selling off public hospitals, pharmacies, and medical centers. In the first phase, more than 1,000 hospital beds, 200 pharmacies, and over 20 medical centers are planned for sale to private investors. Earlier this year, MBS sold Dr. Sulaiman Al-Faqih Hospital for $763 million, part of a broader effort to cover budget deficits by divesting public assets.
These moves have heightened concerns among Saudi citizens who fear that the privatization of essential services will lead to reduced access to affordable healthcare, especially as living costs and unemployment rates remain high. Critics argue that prioritizing costly international sponsorships while privatizing critical domestic services reflects a disconnect between government spending priorities and citizens’ basic needs.
Expanding Saudi Arabia’s Presence in Global Sports
This sponsorship deal with Atlético Madrid is just one of many high-value sports investments backed by Saudi Arabia’s PIF under MBS’s leadership. In recent years, Saudi Arabia has made a bid for the 2034 FIFA World Cup and purchased English football club Newcastle United. Additionally, the kingdom has signed several major football players to its national league and launched the LIV Golf Series, securing top-tier talent to attract international attention.
Domestically, Saudi Arabia has hosted tournaments like the Italian and Spanish Super Cups, invested billions in facilities for sports like golf, and promoted ambitious sports and entertainment projects aligned with Vision 2030. However, the sheer scale of these investments has led critics to question their economic sustainability and long-term benefits for Saudi citizens.
Public Reaction and Economic Impact
While MBS’s sports-focused spending bolsters Saudi Arabia’s international image, it has sparked criticism domestically. Saudi citizens face mounting economic pressures, with rising costs of living and high unemployment rates making daily life increasingly difficult. Many Saudis argue that public funds should prioritize healthcare, education, and infrastructure rather than foreign sponsorships.
Additionally, the deal has raised concerns about the accountability of the Public Investment Fund. By investing heavily in international sports and entertainment, critics argue that MBS’s financial priorities overlook the needs of ordinary Saudis, who feel the impact of economic constraints on essential services. European think tanks and media have also noted that MBS’s use of “sportswashing” aims to improve his global image and foster favorable Western relationships but may fall short of addressing the kingdom’s internal challenges.
A Balancing Act Between Image and Reality
As Saudi Arabia spends 300 million euros to rename Atlético Madrid’s stadium, the focus on high-cost sports sponsorships highlights the kingdom’s ambition to redefine its global image. While MBS’s investments align with Vision 2030’s goals to diversify the Saudi economy, critics argue that prioritizing international image over practical domestic needs may ultimately harm Saudi Arabia’s social and economic fabric.
In the long term, balancing global ambition with local accountability will be essential for Saudi Arabia’s success. For MBS’s vision to genuinely benefit Saudi citizens, the kingdom’s resources must address the needs of its people and provide sustainable solutions beyond global prestige.
