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Saudi Arabia’s football spending spree has been a hot topic in the sports world this summer. The country’s clubs have spent more than 700 million euros on new players, second only to the Premier League. The true figure will be much higher, thanks to lucrative salaries to lure stars away from the glitz and glamor of European football.
While agents pocket their cuts and aging greats pocket their last payday, one of the biggest long-term winners from this trend is global football’s governing body, FIFA.
The nascent Saudi football program kicked off in January with the arrival of 38-year-old Portuguese winger Cristiano Ronaldo, who happens to be the most followed person on Instagram. The floodgates opened and waves were opened in June when the Saudi sovereign wealth fund gained control of the country’s four major clubs, receiving recognition and cash.
Since then, more than two dozen players have arrived, including former Ballon d’Or winner Karim Benzema and Neymar, the most expensive footballer in history. Several hot young players have also made moves.
Much ink has been devoted to explaining the sudden prominence of the Saudi professional league. Some saw it as a simple sports cleansing project, an attempt to reshape the autocratic kingdom into a hub of sports and leisure. Others said it was an honest and expensive attempt to get young Saudis off the couch and into the gym.
The emergence of a new source of cash in football has been felt throughout football. Europe’s cash-strapped clubs with bloated squads welcome a financial bailout. Others have had to spend money to replace unexpectedly lost talent.
But it may ultimately be FIFA under President Infantino who will benefit the most. The agency has been working to create new revenue streams to reduce its reliance on the men’s World Cup, which accounts for more than 80 per cent of its revenue.
Over the four-year cycle ending in 2022, FIFA generated $7.6 billion in revenue from television, sponsorship and ticketing. Thanks to the Champions League, UEFA can make that money in half the time, while the Premier League can do it in a single season.
Now, part of Infantino’s plan is to introduce what is effectively a new competition by overhauling the Club World Cup. Although it’s been around in some form since 2000, a new version due in 2025 promises to be a game-changer, with 32 teams from around the globe competing in a month-long World Cup tournament.
The 2021 Asian Champions League champions, Riyadh-based Al-Hilal, are among the teams to secure a place in the 2025 AFC Champions League. The club was the biggest net spender in football this summer, offering clues to Saudi hopes of building a team with superstars capable of competing on the world stage.
The arrival of deep-pocketed teams from outside UEFA’s jurisdiction should inject competitiveness, curiosity and novelty into FIFA’s programme. Assuming Al Hilal’s group stages against Real Madrid, Chelsea and Inter Miami will help broadcasters unsure whether this new competition will capture the imagination. Expect Saudi sponsors and bids to host the World Cup to follow suit.
FIFA already expects revenues of more than $10 billion for the next four-year cycle. This figure does not take into account any income from the Club World Cup. With Saudi Arabia on board, that number could climb.
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