In this context, it is not surprising that LIV, which has lost billions of pounds since its launch in 2022, is no longer compatible with PIF’s new investment strategy. This is especially true given the huge amount of money that has to be spent on preparing for the World Cup in just eight years.
“As the 2034 World Cup approaches, Saudi Arabia faces huge infrastructure and delivery costs,” says Dr Johan Rewilak, a sports management expert at Loughborough University.
“It is plausible that governments are reallocating capital and reassessing their broader sports portfolios. Geopolitical tensions and rising construction costs may accelerate these decisions and shift spending priorities to security and essential infrastructure rather than high-end sports assets.”
Some sports appear to be better positioned than others, especially those with mass appeal among Saudi Arabia’s young population.
Last year, Saudi boxing chief Turki Alalshikh claimed reports of a slowdown in spending on boxing were “100 per cent untrue”. In July, Riyadh will host a heavyweight bout between Anthony Joshua and Christian Frenga along with the Esports World Cup.
In cricket, the women’s tournament scheduled for later this year has been postponed due to the war in Iran, but the country is reportedly exploring plans for a global T20 cricket tournament. Next year, Saudi Arabia is scheduled to host the AFC Asian Cup for the first time.
A new state-of-the-art Formula 1 circuit is also being built near Riyadh.
The fund will now focus more investments on talent pathways, prioritizing sports that already have a fan base in the country (e.g. combat sports) and where Saudis have opportunities to advance, according to people with knowledge of PIF. “People think the PIF’s money supply is infinite, but that’s a misconception,” one source said. “It is an investment fund designed to maximize the quality of life of Saudi citizens, and now the conflict in the Middle East has accelerated the need for more selective spending.”
The BBC also reported that PIF’s long-term commitment to Newcastle United remains unchanged and a significant capital investment is expected to be confirmed in the coming days.
This will no doubt come as a relief to many fans who are increasingly concerned about future support from the current owners.
But the fate of LIV Golf also serves as a warning to anyone who has become dependent on Saudi sports spending.
Now they all know that nothing is guaranteed.
