Saudi Arabia’s Public Investment Fund (PIF) Discussion
Saudi Arabia’s Public Investment Fund (PIF) is in discussions with multiple boxing stakeholders to create a league, potentially reshaping the competitive landscape of the sport, people familiar with the matter told Reuters. The PIF, chaired by Crown Prince Mohammed bin Salman, is looking to invest in a joint venture with some of the sport’s top promoters, including Matchroom Boxing and Golden Boy Promotions. This initiative aims to bring more boxing bouts to the forefront and could result in a deal valuing the new entity between $4-5 billion.
Key Figures and Final Discussions
Turki al-Sheikh, a close advisor to the crown prince and chairman of the Saudi General Entertainment Authority, is overseeing the final discussions around this potential deal. The exact structure of the league remains to be established, but the goal is to create a venture that unites the main organisers of the sport, with the PIF taking a minority stake. This new boxing league would mark another significant investment by Saudi Arabia in the sports sector, following their involvement in golf, Formula 1, and football.
Vision 2030 and Economic Diversification
Saudi Arabia’s interest in boxing aligns with the kingdom’s Vision 2030 program, which aims to diversify its economy away from oil dependency by investing in various sectors, including sports. The program seeks to boost tourism, create jobs, and develop the private sector. By investing in sports like boxing, Saudi Arabia aims to attract global attention, establish new economic networks, and raise awareness of the kingdom’s ongoing transformation.
Previous Sports Investments
The PIF’s involvement in boxing is expected to follow the success of other sports investments. The LIV Golf series, funded by the PIF, created a significant rivalry with the PGA Tour, leading to a surprising deal to merge the tours. However, this deal is currently at risk due to stalled talks and scrutiny from a U.S. senate panel, which views it as an attempt by Saudi Arabia to gain influence in U.S. sports.
Criticism and Defense
Critics argue that Saudi Arabia uses its sovereign wealth fund to engage in “sports washing” to divert attention from its human rights record. However, Crown Prince Mohammed bin Salman has defended these investments, highlighting their economic benefits. “If sport washing is going to increase my GDP by way of 1%, then I will continue doing sport washing,” the crown prince told Fox News last year.
Hosting Major Boxing Events
The kingdom has already hosted some of boxing’s biggest fights and events, demonstrating its capability to become a major player in the sport. “There is a big opportunity in boxing,” Turki al-Sheikh told ESPN earlier this year. “But you must improve the market.” The PIF’s new boxing league aims to do just that by bringing together the sport’s top stakeholders and creating more high-profile bouts.
Recent Investments and High-Profile Athletes
The PIF recently bought a stake in the United States’ Professional Fighters League through SURJ Sports Investments, further solidifying its commitment to the sports industry. High-profile athletes like heavyweight boxer Tyson Fury have participated in events in Riyadh, attracting global attention and attendance from other sports stars like Cristiano Ronaldo.
Future Prospects of Saudi Arabia Boxing League
The potential Saudi Arabia Boxing League promises to bring a new era to the sport, offering increased opportunities for boxers and heightened global interest. The collaboration with leading promoters such as Matchroom Boxing and Golden Boy Promotions will ensure that the new league has the expertise and reach to succeed.
