Forget crypto, the new get-rich-quick strategy is playing pro soccer in Saudi Arabia.
What happened: Saudi Arabian soccer club Al-Hilal made a record-breaking €300 million bid for French superstar Kylian Mbappé to his current team Paris Saint-Germain, and reportedly intends to offer him a pay package totalling €700 million for a single season.
- Al-Hilal is one of four teams the kingdom’s sovereign wealth fund, the PIF, took over as the nation looks to make its soccer league, the SPL, on par with Europe’s best.
- The league has already lured stars like Cristiano Ronaldo and reigning Ballon d’Or winner Karim Benzema with massive paydays, and just missed out on Lionel Messi.
The long-term ambition for Saudi Arabia is to boast a top-ten league in the world (currently, the SPL ranks 58th for quality), win international club competitions, and host a World Cup.
Why it’s happening: Saudi Arabia’s bid for soccer dominance comes with several goals, like deflecting human rights abuses with starry highlight reels, diversifying investments from fossil fuels, and offering entertainment to appease its rapidly growing, youthful population.
Zoom out: Soccer is just one piece of the sporting puzzle. Per FT, the PIF plans to launch a new multi-billion sports investment group to ramp up its athletic ambitions further. With soccer, golf, and boxing already accounted for, the kingdom’s next big target is tennis.
Why it matters: We already saw Saudi Arabia more or less buy the entirety of competitive golf earlier this year. With (basically unlimited) money to spend, the kingdom is poised to upend pretty much whatever sport it wants by driving up wages and taking top talent.—QH