The European FANK Foundation published a new report on Saudi Arabia, saying that Saudi Crown Prince Mohammed bin Salman’s (MBS) unlimited extravagance in sports activities to whitewash his foreign image will go in vain.
“It is clear that Saudi Arabia has made a concerted effort to transform itself into a leading athletic power in the world. It remains uncertain whether these efforts will prove fruitful in achieving its 2030 goal,” the report reads.
The report further pointed out that Saudi Arabia made lavish spending to host the 2034 men’s football World Cup and to recruit the most prominent football players around the world.
“The kingdom had recruited some of global football’s top talent for its own domestic league, Saudi Pro League (SPL). To bring these stars to Saudi Arabia, a staggering sum of money was spent.”
“This resulted in many of the world’s best soccer stars moving to Saudi Arabia to join teams in the country’s football league. Notable names such as Neymar from Brazil, Karim Benzema of France and Senegalese Sadio Mane were amongst those who have signed lucrative contracts totaling an estimated $1 billion (€926 million).”
“In an effort to develop sports investment, bolster professional practices, and upgrade infrastructure, Saudi Arabia’s Public Investment Fund (PIF) acquired a majority stake in four of its top football clubs: Al-Hilal, Al-Nassr, Al-Ittihad, and Al-Ahli. These teams now represent more than 75 percent of PIF’s ownership.”
“Saudi Arabia set a target revenue of $480 million for their leagues by 2030 as part of its 2030 vision. Currently, revenues are $120 million, so a drastic increase is needed, which means all parties involved must embark on a long but necessary journey.”
The report pointed out that this mission can be achieved if enough effort is put into improving the sports sector’s infrastructure and sports education.
One of the foreign officials in the league has made it very clear that this is not a short-term investment. The Saudi Arabian Government has promised to provide financial support for the league until it can boast both considerable revenues as well as top quality football, he said.
To ensure their new players have the most luxurious lifestyles, Al-Hilal has doled out a considerable amount of money. Neymar, 31, was gifted with not only three luxury cars, according to The Sun, but four Mercedes G Wagons and a Mercedes van for his entourage as well as 24/7 access to a driver. Furthermore, they have provided him with 25 room property that includes an immense 10m by 40m swimming pool and a private jet. Other than Neymar, Aleksandar Mitrovic, Kalidou Koulibaly and Ruben Neves also benefited from Al-Hilal’s lavish expenditures once signed.
However, Ronaldo and Benzema received the highest salaries of $3.4m and $3.3m a week, respectively.
On the flip side, Al-Ittihad had their offer of 150 million pounds ($187.10 million) for Mohamed Salah rejected by the Liverpool team, while other bids from Al-Hilal to acquire Lionel Messi and Kylian Mbappe were unsuccessful, Reuters reported.
This Saudi lavish spending on sports activities raises the question about the uncertain returns to the Saudi economy.
Meanwhile, there are serious concerns about the uncertain returns to this Saudi lavish spending on sports activities that allegedly aims to shift its economy away from primarily relying on oil revenue.
