Saudi Arabia has emerged as an unexpected powerhouse in soccer, flexing its financial muscles like never before. Over the past years, the nation has made headlines by spending an astonishing $875 million to acquire top-tier players—a figure surpassed only by English clubs. In this article, we'll explore Saudi Arabia's soccer spending spree, explore its motivations, and assess its impact on the global soccer landscape.
A Surprising Turn of Events
A year ago, Saudi Arabia was not prominent in discussions about soccer leagues attracting A-list players. However, the tables have turned dramatically, with the kingdom now outspending most European teams.
Goal/ Instagram | Sports is one of the main pillars of the government's Vision 2030 project
According to the FIFA International Transfer Snapshot published recently, Saudi teams splashed a staggering $875.4 million on foreign players between June and September. Only English clubs, who spent a collective $1.98 billion during the same period, surpassed Saudi Arabia's spending spree. French and Italian clubs, meanwhile, invested $859.7 million and $711 million, respectively.
This surge in spending has contributed to an all-time high in global transfer fees, reaching $7.36 billion over the three months—a remarkable 47.2% increase from the previous year. As noted by FIFA, Saudi Arabia's "substantial" contribution is undeniably a driving force behind this surge.
Saudi Arabia's Soccer Ambitions
Saudi Arabia has been on an aggressive mission to become a major player in the world's most-watched sport. The country has left no stone unturned, investing heavily in elite leagues and state-of-the-art stadiums and attracting some of soccer's biggest stars. Among the notable acquisitions in the past year are Portuguese legend Cristiano Ronaldo, Brazilian sensation Neymar, and Ballon d'Or winner Karim Benzema.
Abdulla Bin Talib/ Pexels | The kingdom’s massive investment in sport is part of a broader effort to diversify its economy
Investing for a Diverse Future
So, why this sudden spending spree? Saudi Arabia's broader strategy is to diversify its economy beyond fossil fuels. Sporting tournaments represent a lucrative opportunity to attract foreign investment, promote domestic industries, and generate substantial revenue. To this end, the Saudi Public Investment Fund (PIF), overseen by Crown Prince Mohammed bin Salman, has taken control of four local clubs.
Previously, these teams fell under the Ministry of Sport and received government support. The PIF's investments in soccer also extend beyond Saudi borders, with the acquisition of a majority stake in the English Premier League club, Newcastle United, in 2021 for nearly $400 million.
Chasing Stars and Records
Saudi Arabia's deep pockets have allowed it to make eye-watering offers to star players. They reportedly offered Lionel Messi $545 million annually and Kylian Mbappé a staggering $776 million for a single season in one of its clubs—although both players declined these offers. However, Cristiano Ronaldo couldn't resist a jaw-dropping $200 million annual paycheck to join Saudi club Al-Nassr.
Tembela Bohle/ Pexels | Saudi clubs cumulatively spent more than $1 billion in transfer fees
Despite these mega-deals, Saudi Arabia has a long way to go before becoming the soccer hub it aspires to be. FIFA's report highlights that Saudi Arabia's transfer receipts were a mere $15.7 million, a fraction of what other countries earned from outgoing player transfers.
For instance, German clubs raked in $1.1 billion during the same three-month window, representing over 15% of the global total. English teams earned $956.2 million from outgoing player transfers, and French sides netted $887.8 million.
Controversy and Ambition
Saudi Arabia's sudden influx of money and interest in soccer has not been without controversy. Critics accuse Riyadh of "sportswashing," using sports to divert attention from its human rights record.
Despite such allegations, the kingdom's sports ambitions show no signs of slowing down. Renowned cricketer and England's test team captain, Ben Stokes, recently commented on the immense financial prowess of the Kingdom, stating that it leaves little room for any other forces to compete.
