Bin Salman creates a sports empire… Martial arts reception

Saudi Arabia, with its astronomical oil money, is sweeping the world to host international competitions and making inroads into popular sports one after another. It is a strategy to show off its ‘sports prowess’ to the world as a leader in the Middle East, while also aiming for the ‘sports washing’ effect to dilute its image as a country that oppresses human rights. There are also predictions that all major sports competitions that have been held in Las Vegas, USA so far will be held in the Saudi capital, Riyadh, in the future.

On the 20th (local time), the Financial Times (FT) reported that a Saudi-backed martial arts organization is acquiring the U.S. Bellator and competing with UFC, the world’s No. 1 mixed martial arts (MMA) organization.

The Professional Fighting League (PFL), in which Saudi Arabia invested capital, recently acquired Bellator, a fighting organization owned by U.S. Paramount. The FT reported that Paramount sold Bellator to the PFL, leaving behind a minority stake, and that the PFL and Paramount will join forces to challenge the UFC.

Although the specific acquisition amount was not known, Bloomberg estimated that PFL’s corporate value would reach $500 million. Don Davis, founder of PFL, said, “This merger and acquisition (M&A) will change the MMA market overnight. If PFL and Bellator combine, we will secure 30% of the top 25 players in the world, which is equal to the proportion of UFC players. “It’s the same,” he emphasized.

In response, Dana White, president of rival UFC, mocked, saying, “(Saudi Arabia) is burning cash.” The UFC is gaining popularity, earning $1.1 billion last year, but it is embroiled in internal strife, including a lawsuit over wage issues with its athletes.

Founded in 2017, PFL is a new fighting organization, but it attracted attention last August when Saudi Arabia’s sovereign wealth fund (PIF) invested $100 million. FT said, “Saudi Arabia hopes to strengthen its global presence in all sports, including soccer, golf, and tennis. In the Middle East, it competes with the United Arab Emirates (UAE), a financial and logistics center, and has recently been watching the UFC being held in the UAE. “He said. Saudi Arabia is shaking up the global sports market by monopolizing the right to host large-scale sporting events. There are four major competitions that have been recently hosted with enormous capital. The 2027 AFC Asian Cup, 2029 Winter Asian Games, 2034 Summer Asian Games, and 2034 FIFA World Cup are all scheduled to be held in Saudi Arabia.

Formula One (F1), sponsored by oil giant Aramco, has also included Saudi Arabia’s Jeddah as the venue for the Grand Prix race since last year. The ‘LIV Golf Invitational Series’, sponsored by Saudi Arabia’s sovereign wealth fund, was launched last year and recruited star golfers with enormous financial power, and this year, it caused a stir by merging with the PGA of America, the number one player in the industry.

They also proposed a plan to create the world’s top 10 professional soccer leagues by recruiting soccer stars such as Cristiano Ronaldo and Karim Benzema into the Saudi professional league. According to the FT, Saudi Arabia does not have any famous tennis players, but is using its financial power to host tennis tournaments.

Gaming, an emerging market in the sports industry, is no exception. The Wall Street Journal (WSJ) reported that Saudi Arabia plans to invest $40 billion to foster the gaming industry. Saudi Arabia will host the ‘E-Sports World Cup’ every year in Riyadh starting next year.

The boxing event held in Riyadh on the 29th of last month is also a symbolic event. The match between world heavyweight champion Tyson Fury and PFL mixed martial artist Francis Ngannou was held in Riyadh, not the boxing mecca of Las Vegas. In an interview with the Washington Post (WP), Fury said, “They (Saudi Arabia) are dominating the game,” and added, “In the next five to 10 years, all major global sporting events will be held in Saudi Arabia.” WP said, “Funds flowing in from the Middle East are reorganizing the world sports power structure,” and “However, there is also controversy over the source of funds.” It is pointed out that Saudi Arabia is pursuing a strategy to turn its attention to sports instead of the dark reality in a situation where women’s and sexual minority human rights issues persist and the media does not function properly.

Meanwhile, Saudi Crown Prince Mohammed bin Salman plans to reduce the Saudi economy’s dependence on oil in accordance with the ‘Vision 2030’ plan. Sports, which Crown Prince Bin Salman is focusing on investing in, is one of the ways to grow into a tourism powerhouse beyond its regional rival, the UAE.

[진영태 기자]