Published June 20, 2023, 3:20 p.m. by Violet Harris
saudi arabia is investing a lot of money in football.
Over the last week, the kingdom has taken ownership of the country's four biggest clubs through the PIF - saudi arabia's sovereign wealth fund that also owns 80% of newcastle United, signed Karim benzema on a deal worth €200 million a season, and tried to reunited Lionel Messi with Cristiano Ronaldo, offering the former €400 million a season.
It begs the question, in light of the PGA Tour merging with liv Golf, of whether liv football could be next - so in this video, HITC Sevens takes a look at saudi arabia's football project, why they're doing it, and whether the saudi Pro League could really ever challenge the Premier League or Champions League in world football.
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you've probably noticed over the past
couple of weeks that Saudi Arabia is
throwing a lot of money at football even
prior to recent weeks the kingdom
acquired 80 percent of Newcastle United
has signaled an intention to house the
FIFA World Cup and made Cristiano
Ronaldo the highest paid player in the
entire history of the sport but now
things have got really crazy Angolo
kante and Karen Benzema have joined
alityhad on contracts reported to worth
100 and 200 million euros a season
Lionel Messi was offered double that
amount 400 million euros to join
al-hilal and several other superstars
look likely to follow in Ronaldo kante
and benzema's footsteps after the pif
which is Saudi Arabia's Sovereign wealth
fund which also owns 80 percent of
Newcastle United recently acquired
majority stakes in Saudi Arabia's four
best supported clubs neither Saudi
wealth nor in just in sports or football
or anything new indeed I made a video on
exactly that topic a little over 18
months ago after Wes from midfielder
Matthias Pereira chose to join al-hilal
ahead of West Ham and other Premier
League offers but this is investment on
an entirely different scale to put it
into some perspective the 200 million
euros a season that Saudi Arabia will
pay Karen Benzema is over twice as much
as any football in Europe has ever been
paid by their clubs alone it is more
than the entire annual budgets of seven
different Premier League clubs and by
far the world's highest spending
Division and it is the same as the
entire salary cap of 208.2 million
dollars set for every NFL team in the
2022 season that's right Karen Benzema
alone is paid as much as any NFL team at
Real Madrid by contrast Benzema was paid
around a poultry 12 million euros a
season after tax and if using after tax
figures seems like an unfair comparison
don't forget that there is no personal
income tax in Saudi Arabia so a salary
of 200 million euros is just that
Messi's contracts offer meanwhile whilst
it was rejected would have been not just
by far the most lucrative in the entire
history of world sports but would
actually have been worth more each
season than the amount that Saudi Arabia
paid to buy Newcastle United in
2021. clearly then this is quite a big
deal but the question remains just how
big is this a fleeting phenomenon akin
to the nasl in the 1970s a doomed
projects like the Chinese Super League
during the 2010s or the reshaping of the
global football landscape which will see
the Saudi pro league Challenge and
perhaps even eclipse the likes of the
Premier League and the
UEFA Champions League and whatever the
outcome why is this happening why has
the intensity of spending ramped up so
extremely over such a short period of
time and what is the end game in all of
this for Saudi Arabia themselves well
sit back relax and join me on a journey
to the birthplace of Islam and the
largest country in western Asia where 95
of land is Desert witchcraft is still a
crime and descent can be deadly as I
attempt to answer all of those questions
and more in the same week that Alexi had
unveiled the signing of the reigning
Ballon d'Or winner al-hilal offered
Lionel Messi roughly a billion dollars
over two seasons and Saudi Arabia's
three biggest clubs were taken into
statens the PGA Tour merged with its
saudi-backed rival live golf in what was
viewed by many as being a capitulation
by PGA and a huge win for Saudi Arabia
and their sporting expansion that's
inevitably led to comparisons between
Saudi Arabia's realized influence in
golf and their intention to make similar
inroads in football with some people
speculating that it's only a matter of
time before football's current authority
figures and organizations would Buckle
in a similar fashion football and golf
are entirely different ball games though
quite literally of course and I don't
just mean in the sense that the ball is
much bigger in football and it is a bit
more difficult to become an all-time
great on a diet consisting solely of
chicken and waffles football is by far
the most popular sport on the planet and
it has long been very hierarchical for
more than a century Europe and South
America have dominated almost every
aspect of the sport despite its
ever-expanding interest and popularity
throughout other parts of the globe no
team from outside of Europe or South
America has ever won the FIFA World Cup
or even reached a World Cup final nor
has any non-european or South American
team ever won the much less prestigious
FIFA Club World Cup while South American
football remains a powerhouse on the
international stage with Argentina
recently haven't become the first
non-european national team to win the
World Cup in 20 years its Club Gamers
struggle to keep Pace financially with
Europe's leading leagues particularly
since the 1980s and 90s it's now more
than 90 years since the South American
Club last signed a player for a world
record-breaking fee almost all of the
con confidence bass players eventually
play their domestic football in Europe
and that is reflected in no South
American Club even having won the club
World Cup for more than a decade within
a European context there has been a
further concentration of power in the
hands of initially just a few leagues
and increasingly now just the Premier
League and about five other clubs but
broadly speaking the English Spanish
German and Italian leagues have been on
top for the best part of 50 years during
that time and even before it there have
been several attempts to disrupt that
settlement the first and arguably still
the most notable came in Colombia during
the late 1940s and early 1950s when the
country capitalized upon a footballer's
strike in Argentina and the expulsion
from FIFA to sign some of the world's
best players without paying any transfer
fees because the campionato professional
had been in spelled from FIFA they
didn't have to abide by any of the rules
and regulations that governed other
football leagues and they soon set about
delivering suitcases full of cash to
some of the most high profile players
from Argentina Brazil Uruguay and even
Europe Alfredo de Stefano who was
arguably the best player on the planet
at the time spent four years starring
for millinarios meanwhile possibly
England's greatest ever Defender Neil
Franklin lasted just six weeks at
milanaris's Bogota Rivals independiente
Santa Fe but that was still enough to
stop him from Ever playing for England
or in the first division ever again the
whole thing went up in a giant ball of
flames in the space of about five years
but that didn't stop the United States
from pursuing a similar strategy of wild
spending and Rapid expansion during the
1970s the signing of Palais by New York
Cosmos in 1975 joined by the likes of
Franz beckenbauer Johan Cruyff gerd
Muller and George best amongst others
was supposed to be the Catalyst for
transforming the North American soccer
league into the biggest football league
on the planet and soccer into the most
popular sport in the United States of
America by 1984 the nasal had collapsed
under the weight of enormous debts the
MLS founded in 1996 with much stricter
Financial regulations to prevent it from
meeting a similar fate loosened those
regulations to bring a 32 year old David
Beckham to Los Angeles in 2009 followed
by the likes of Thierry Henry Kaka and
most recently of course Lionel Messi the
gradual progress of Major League Soccer
has been less dramatic than the nasl or
the El Dorado era of Colombian football
but in signing predominantly older
players on big money in the latter
stages of their careers the comparisons
with Saudi Arabia strategy Still Remains
strong far less gradual and more
dramatic however is the comparison that
you will hear most often about Saudi
Arabia's recent investments in football
and that is with China during the
mid-2010s the most populated Nation on
Earth and a global superpower alongside
the United States China's president for
Life Xi Jinping who is himself actually
quite a big football fan decided that
the nation's long-term underachievements
in football was an issue that the state
ought to address and when she and the
CCP want something addressed in China it
tends to get addressed almost overnight
Chinese money flooded into football both
at home and abroad the likes of West
Brom wolves AC Milan Inter Milan and
Granada were all taken over by Chinese
businesses or billionaires and a Chinese
Consortium even acquired a 13 stake in
the the city football Group which owns
12 football clubs including Manchester
City Guangzhou Honda made Dario conquer
an uncapped Argentine who most football
fans had never even heard of the third
highest paid player on the planet
Shanghai Shanghai were believed to have
made Carlos Tevez briefly the highest
paid player in the world and in the 2017
winter transfer window the Chinese Super
League leapfrogged the Premier League as
the world's highest spending division
this was serious Investments and all
parts of our plan to establish China
initially as one of the leading
footballing nations in Asia reaching the
level of South Korea and Japan by 2013
and to have one of the best men's and
women's national teams by 2050 capable
of hosting and winning the FIFA World
Cup the very visible investment in the
likes of Oscar tavez and European Club
ownership was twined with less visible
but equal radical investments in
domestic infrastructure and coaching it
took just two or three years basically
between 2016 to 2018 for that rapid
investment to be met with equally sudden
divestment as she and the CCP
implemented salary caps limits on the
number of foreign players and instructed
the same Chinese businesses and
billionaires who had invested in
football under their instructions to
stop doing so and even to sell their
foreign clubs due to concerns
surrounding Capital flight a lack of
tangible results and new priorities now
the Chinese super league has all but
collapsed with several of the League's
highest spending clubs either having
been relegated or outright dissolved and
only a handful of European teams are
still Chinese owned there are lots of
striking similarities between China and
Saudi Arabia's investments in football
both were shocking and unprecedented
they included investment both at home
and abroad and they both had the
long-term aim not just of bringing some
very famous footballers to their
countries but also of developing
competitive teams leagues and perhaps
most notably hosting the FIFA World Cup
both were also the results of decisions
taken by dictators of course or at the
very least unelected governments and
ruling royal families but it's also
there that you will find some key
differences I have seen it said
repeatedly in the athletic over the past
week that the big difference between
China and Saudi Arabia is that the
Chinese aren't passionate about football
I don't think that's true there were
several Chinese teams capable of
attracting crowds of upwards of 50 000
funds for their home games and a
distinct football culture which predated
that massive investment Saudi Arabia is
more passionate about football than
China as a whole or on a per capita
basis No Doubt out but in absolute
numbers there are inevitably a great
many more passionate football fans in
China than there are in Saudi Arabia or
just about anywhere else for that matter
the real difference between Saudi Arabia
and China's approaches to football is in
terms of how the two countries are run
and what their priorities are ultimately
football just wasn't that much of a
priority for China or at least it wasn't
enough of a priority that she and the
CCP felt that the Circa
2016-17 Investments could be justified
when trying to figure out whether Saudi
Arabia will reach a similar conclusion
in just a few years time it's important
to consider why they are doing this at
all on that front there are a few
different theories the most talked about
is sports washing a term which has been
popularized over the past decade but is
still often misunderstood and is
typically used within this context to
refer to the idea that if if the first
thing that foreigners think of when they
think of Saudi Arabia is either
Cristiano Ronaldo or Karen Benzema or
football more broadly instead of let's
say a genocide in Yemen public
beheadings or the chopping up of
journalists the kingdom will have
secured a PR win the extent to which
this is Saudi Arabia and the Crown
Prince Mohammed bin Salman's main aim
when it comes to football is at times I
think a little overblown though it is
certainly true that MBS has been Keen to
embellish the idea of him being some
great liberalizer in the west whilst
implementing brutal crackdowns at home
and Sport can play a role in softening
the image that foreigners have of both
him and Saudi Arabia more broadly more
important perhaps is the routinely
overlooked efforts to sportswash if you
want to use that word at home rather
than abroad Saudi Arabia is an absolute
monarchy there are no political parties
unions or other forms of permitted
political organization the house of Saud
restricts almost all political rights
and civil liberties and criticisms of
the regime can result in torture
imprisonments or death during the 2011
Arab Spring a young boy named murtigi
kasary took part in protests in Saudi
Arabia allegedly having shouted the
people demand human rights into a mega
found down a Dusty side street in one of
Saudi Arabia's Eastern provinces kesari
was arrested Accused by the Saudi
government of having been part of a
terror group and of sowing sedition and
allegedly tortured into providing a
false confession kesari was just 10
years old at the time of the protests
and 13 years old when he was arrested
making him one of the world's youngest
political prisoners in 2018 when caseri
turned 18 years old Saudi prosecutors
indicated that they will be seeking the
death penalty T despite K series age at
the time of his alleged offenses
accusing him of having thrown Molotov
cocktails at a police station after his
brother had been killed at a protest
kesari's case is Not Unusual last year
Saudi Arabia executed 81 people in a
single day many of whom were also
believed to have been government critics
accused of being terrorists by the Saudi
government and then tortured into giving
false confessions but whilst MBS and the
Saudi State can pick off tens hundreds
and perhaps even thousands of dissenting
voices as they have done for Generations
now that situation becomes increasingly
untenable once you get into the tens or
hundreds of thousands Saudi Arabia has a
young population the average age is just
below 31 about 70 percent of the
population are under the age of 35 and
it is young people who have the greatest
appetite a change whilst young people
might be more likely to oppose the
extreme social and religious
conservatism that marks Saudi Arabia out
as one of the most conservative
countries in the world they're also
often fanatical about football keenes to
avoid future unrest and challenges to
their Authority the house of Saud
therefore is deploying their characters
well as the stick on the one hand if you
protest or voice any dissent be prepared
for the most brutal repression
imaginable but on the other hand if you
just want to see some of the best
footballers in the world playing in
Saudi Arabia we could also make that
happen of course football isn't the only
aspect of that strategy or even the most
important one and we don't have time to
get into some of the others but it is
still significant equally important
perhaps is just the Practical
implications of getting young people
more interested in sport and hopefully
more active as a consequence about 70
percent of Saudi Arabia's population may
be under the age of 35 but roughly 60
percent of the population is either
overweight or obese that has significant
ramifications in terms of productivity
in healthcare in a country where the
state provides Universal Health Care and
addressing weight and inactivity related
Health Care issues could save the state
of Fortune in the long run in 2020 Saudi
Arabia's spending on Health Care totaled
49.1 billion dollars under current
trends that is predicted to rise to 77.1
billion dollars by just 2027.
sport is also seen as one of the ways in
which Saudi Arabia can diversify its
economy away from a dependence on oil as
part of the country's Saudi Vision 2030
framework which has been the primary
motivation for the rapid expansion of
the pif's Investments under MBS so far
progress on that front has been slow
despite the size of Saudi Arabia's
Sovereign wealth fight there are a
number of misconceptions more broadly
about Saudi Arabia's economy Saudi
Arabia isn't actually that rich I mean
it is but it also kind of isn't there
are various ways of measuring the
economic strength or output of a country
but by nominal GDP which is among the
most common methods Saudi Arabia's
economy is a little bit smaller than the
Netherlands about half the size of
Russia or Canada's roughly a third of
the size of the United Kingdoms and four
percent of the size of the United States
sure you might say but Saudi Arabia is
only Homes at 35 million people which is
true but Saudi Arabia ranks even lower
in terms of GDP per capita Saudi Arabia
ranks 38th in the world by that metric
below Slovenia Taiwan and Estonia all
right Alfie I hear you say but what
about Saudi Arabia's massive Sovereign
wealth fund that we keep hearing about
the pif with its 620 billion dollars in
assets under management that is an
important point and one that I would
expect from such an intelligence
audience but it is still less than the
Sovereign wealth funds of Abu Dhabi
Kuwait China and the largest of them all
norways which is worth 1.4 trillion
dollars or in other words over twice as
much as Saudi Arabia's you heard me
right twice as much if they wanted to
Norway could use its Sovereign wealth
fund to say take over the country's four
biggest clubs pump them full of cash and
outbid Saudi Arabia for Ronaldo Benzema
and kante as a nation of just 5 million
people but they're too busy wasting it
on things like a functioning Healthcare
System outstanding public transportation
and a large social safety net the
short-sighted buffoons they could have
signed Sergio busquets instead none of
this is to say that Saudi Arabia doesn't
have the resources to shake up World
football very clearly they do but the
idea that they are uniquely rich or have
deeper Pockets than any other country on
earth is simply misplaced if China had
wanted to commit to their football
project and was as committed as Saudi
Arabia they could have outbid them for
every Club player and competition until
the end of time this is a question of
priorities not wealth in terms of the
likelihood of success even if Saudi
Arabia yeah is in it for the long haul
and remains extremely committed unlike
China they still face significant
challenges in terms of prestige
desirability and domestic standards in
every previous attempt of the silk we
have seen just how difficult it is to
completely reshape the landscape of
football the nas Sal and Chinese Super
League attracted top players but many of
them were nearing the end of their
careers had already secured their
legacies with their more prestigious
competitions and were let's be honest
motivated by one last massive payday so
far the same is true of Saudi Arabia's
investments in football Cristiano
Ronaldo is 38 Karen benzemar is 35 and
whilst Angolo kante is the youngest of
the trio of 32 he has had awful injury
problems this season has only played
about seven games and hasn't quite been
the same player over the last couple of
Seasons if this was killing
Holland and Jude Bellingham that we were
talking about it would be an entirely
different conversation but would any of
those players move to Saudi Arabia at
this stage of their careers even if they
were offered enough money to form their
own private militias personally I have
my doubts even Harry Kane who will turn
30 this summer and is already as club
and country's all-time record goalscorer
if he was offered five times as much to
play for al-hilal next season as he was
to play for let's say Manchester United
or Real Madrid my suspicion is that he
would turn it down and for very obvious
reasons the profile of the Saudi league
is likely to rise along with the caliber
of the players and teams within it but
the former will be more gradual and no
point during the careers of the players
currently moving to Saudi Arabia will
winning the Saudi pro league be
considered on par with winning La Liga
robber Premier League nor the AFC
Champions League be considered as
prestigious as the UEFA Champions League
Oscar became stupendously Rich by
joining Shanghai sipg in 2015 but he
never played for Brazil again most
people haven't seen him play for the
last eight years and many of you
probably forgot that he even existed
inevitably a lot of players despite the
financial incentives will consider that
a price too great especially when they
are already unfathomably rich and can
earn more money than they could ever
spend playing in Europe or even if they
are that way inclined they can just wait
until they're into their 30s to make
that move and to earn those kinds of
sums combine that with the fact that
plenty of players will find the
prospects of living in Saudi Arabia
whether you agree with them or not less
desirable than living in Europe or North
America for example and you end up just
as the Chinese Super League clubs found
having to pay Wild over the odds in
order to convince players to join your
clubs they are sometimes not all that
committed because the finances of the
deal were that only motivation and it is
extremely difficult to attract the very
best players in their early years or
even at the peak of their powers the
reason the Premier League is the most
watched league in the world isn't just
because it has the best teams or the
best players though that is arguably now
the case even when Spanish clubs
dominated Europe and star players
inevitably ended up joining either Real
Madrid or Barcelona the Premier League
was still the most watched and the most
lucrative league in the world likewise
despite signing some big name players
few people outside of China started
watching the Chinese Super League just
because of Tevez Oscar or Hulk Cristiano
Ronaldo and Karen Benzema are of course
on a whole different scale in terms of
their profile to any players recruited
by the Chinese Super league and they
will bring with them individual eyeballs
but history shows us that top heavy
leagues tend to come crashing down
watching Javi even in the Autumn of his
career strutting around the Qatar Styles
League was like watching pedry if you
just plonked him into the vanarama
national league North in China the
golfing class between domestic and
overseas players was so Stark that for
anyone who did actually watch it it was
hard to take too seriously Saudi Arabia
isn't China in football terms they beat
Argentina at the World Cup despite
finishing bottom of their group but the
Saudi pro league is ranked outside of
the world's top 50 leagues below the
Scottish Premiership the championship
and Seria B plonking Ronaldo and Benzema
are in there does not a premier league
make the Premier League's rise was
anything but organic it was a
corporatist breakaway League built on
the premise of maximizing broadcast and
media revenue and keeping that Revenue
within the Premier League rather than
Henry Distributing it throughout the
pyramid however recruitments and
Investments Rose broadly in line with
Revenue there were some exceptions like
Roman abramovich's arrival at Chelsea
and Abu Dhabi involvement at Manchester
City but it wasn't like the Premier
League broke away from the football
league in 1992 signed Marco van basten
Jean-Pierre papin and haristo stochkov
and suddenly became the most popular
league in the world overnight that has
never worked and whilst past performance
is not indicative of future results as
the famous disclaimer goes it is going
to take something pretty staggering to
end that precedent in missing out on
Lionel Messi Saudi Arabia's football
project has already hit its first rock
the idea worth 600 million euros a
season it would seem was to have
Cristiano Ronaldo at El naseer and
Lionel Messi at al-hilal who are the two
biggest clubs in Saudi Arabia's capital
city of Riyadh and already have a bitter
rivalry in order to project that rivalry
onto the world stage through the medium
of the greatest individual rivalry
within the sport in recent decades
between Messi and Ronaldo themselves
that is the reason why the four clubs to
have been taken into pif ownership are
the two biggest from Saudi Arabia's two
biggest cities Riyad and Jeddah despite
Al Ali only having one promotion from
the second tier of Saudi football this
season as the state wants to sell the
league around those four super clubs and
two Mega Derbies Messi has thrown an
early spanner in the works of those
plans and whilst al-alali will still
sign a superstar this summer of that
there is no doubt there is no one out
there other than Ronaldo who's already
playing for their Rivals with a remotely
similar profile to Messi the decision to
focus on those four clubs meanwhile has
upset a number of others non more so
than al-shabab who have finished in the
top four in each of the last three
seasons and felt as though they had
turned the traditional big four into a
big five whilst their Rivals sang Global
Superstars they just lost their own top
scorer Aaron bupenza in a 7 million
dollar move two MLS outfits FC
Cincinnati in addition to the four clubs
taken over by the pif four more will
receive significant investment from
so-called private companies namely
alcazia from Saudi aramco aldarea club
from the daraya gate developments
Authority al-ula from the Royal
commission and alsakor from neon which
is the company behind the dystopian
proposed smart city that some of you
will probably have seen none of those
teams compete in the Saudi pro league
though and given that all of those
companies are majority state-owned it is
just State ownership and state
Investments under a different name for
now most European clubs will see the
Saudi pro league as a useful opportunity
to offload older players on big wages as
was the case with the Chinese Super
League in the mid-2010s though Saudi
clubs are yet to actually pay
considerable transfer fees unlike the
Chinese Super League instead targeting
free agents countless players meanwhile
will use real or imagined offers from
Saudi clubs to bolster their pay packets
at home but fewer will actually make the
move in the case of the Chinese Super
League it was the signing of Alex
taisheyra who was Jurgen klopp's primary
targets at Liverpool at the time and was
also sought after by Chelsea that really
made European Club start to worry and
think that actually this could be some
kind of threat that threat didn't
materialize partly because tayshayra
proved to be an exception too rather
than a new rule and partly because
within a couple of years China had a
change of heart when it came to their
investments in football this Saudi pro
league will have its taste Shader moment
the will probably be a player who isn't
in their 30s and is wanted by European
super Club who turns that offer down in
a move to Saudi Arabia instead and that
will worry your obsolete overcoming the
hurdle of prestige desirability and the
sheer amount of time that it will take
to establish the Saudi pro league as a
top 10 league in the world as is Saudi
Arabia's aim let alone one that can
rival the Premier League and Champions
League that is a task that will take not
just eye-watering amounts of money but
much more than cash alone that's not to
say that it can't be done just that it
is extremely difficult and the wholesale
idea particularly on this platform that
that shift has already happened is well
a little bit Daft I have only touched on
about 60 to 70 percent of what I planned
for this video but it's already very
long and I've no doubt that you're all
sick of hearing my voice I rarely ought
to have followed in the true geordy's
footsteps instead who spent the first
two minutes of his Saudi Arabia video by
doing a gambling advert six minutes just
Googling which players had been offered
contracts by Saudi clubs and what they
were worth and going and then the last
couple of minutes saying that Saudi
Arabia will get everything that they
want because they are so powerful and no
one will watch the Premier League
anymore if the best players go to Saudi
Arabia brilliantly insightful stuff a
real gift to the YouTube Community I'm
sure that you would agree anyway I'm
sure that we'll return to this topic at
some stage and if you're not sick of my
voice I would recommend my previous
video about the structure and history of
Saudi football more broadly which I will
leave a link to at the end of this video
and in which I was just as remarkably
prescient as you have all come to expect
thank you all very much as ever for
watching hit the like button if you
enjoyed it apparently that is helpful in
some way let me know your thoughts Down
Below in the comments and make sure of
course it goes without saying that you
have notifications turned on both for
this Channel and my backup Channel both
of which should be on your screens or
about to appear on your screens now
along with a couple of videos one of
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right I don't know anyway you can also
find me on Twitter or on Instagram via
the username at hrtc Sims on both should
you wish to do so
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