Summary
Highlights
Newcastle United, a struggling English football club, was acquired by Saudi Arabia's sovereign wealth fund in 2021. This was part of a larger trend where Saudi Arabia has spent over $10 billion on sports, leading to accusations of 'sportswashing.' Sportswashing is defined as using sports to improve a country's image, a tactic historically employed by regimes like Nazi Germany, Argentina's military junta, and Vladimir Putin's Russia. Saudi Arabia's current human rights record, including suppression of dissent and involvement in the Yemen war, provides strong motivation for such image-cleansing efforts.
The Al Saud family has ruled Saudi Arabia since its modern inception, initially relying on the ultra-conservative Wahhabi movement for power and enforcing strict religious laws. However, their long-term power has been sustained by oil. Since the mid-20th century, Saudi Arabia's vast oil reserves have brought immense wealth, allowing the government to provide extensive social services to its citizens, fostering dependence, and accumulating significant international influence. This reliance on oil has prevented the diversification of its economy.
Predictions indicate a decline in global oil demand by the late 2020s, posing a significant threat to Saudi Arabia's oil-dependent economy. This impending crisis jeopardizes the regime's financial stability and its ability to maintain public support. In response, Crown Prince Mohammed bin Salman (MBS) was appointed de facto leader in 2015 and initiated 'Vision 2030,' a plan to diversify the economy. While MBS has a controversial human rights record, he has also introduced social reforms, such as empowering women and loosening religious restrictions. These changes are seen as pragmatic steps to boost economic efficiency and mobilize the entire population for the new economic vision.
Central to Vision 2030 is the Public Investment Fund (PIF), a $700 billion sovereign wealth fund tasked with investing in new industries. The PIF has invested heavily in domestic projects like housing, tourism developments, and the futuristic city of Neom, aiming to create jobs and income streams. Additionally, it has poured billions into international companies, particularly in the U.S., seeking both financial returns and increased global influence. This strategy extends to sports, where acquiring assets like Newcastle United is a cost-effective way to build influence and foster goodwill, rather than just profit.
Saudi Arabia observes how neighboring states like Abu Dhabi and Qatar have used sports—like owning Manchester City and Paris St. Germain—to gain economic and political leverage. Saudi Arabia, with its greater financial resources, is now aggressively buying into various sports, including establishing a new golf league (LIV Golf), sponsoring Formula One, and investing in major football clubs globally. Beyond international influence, sports serve an internal purpose: entertaining the large, young, and often unemployed Saudi population (23% unemployment for those under 35). By bringing major sporting events and stars to Saudi Arabia, MBS aims to prevent social unrest and secure loyalty, a strategy reminiscent of 'bread and circuses'.
The term 'sportswashing' is seen as an oversimplification, failing to capture the full scope of Saudi Arabia's motivations. While reputation laundering is a factor, the massive investment in sports is also driven by a perceived existential need to secure the country's future beyond oil. This presents an opportunity for international organizations and countries to leverage their influence within the sports world to push for genuine change and reforms within Saudi Arabia, as the kingdom seeks global legitimacy and power.