Over the past decade Saudi Arabia’s aggressive spending transformed global sport. Backed by the state-backed Public Investment Fund (PIF) and other state actors, the kingdom offered huge salaries to veteran footballers, bought clubs, funded new golf circuits and supported events across disciplines as part of its Vision 2030 strategy to diversify the economy.
That approach, criticised by rights groups as a form of “sportswashing,” is now showing clear signs of reversal. The most high-profile example is golf: LIV Golf, launched in 2021 with PIF backing, has been wound down after its backer concluded the sustained, sizable investment required no longer fits the fund’s strategy. LIV had drawn top players away from the PGA Tour with large pay packages, and its closure raises questions about those players’ futures and the balance of power between rival tours.
In football, PIF sold a 70% stake in Saudi Pro League club Al Hilal, saying it wanted to redeploy capital domestically and maximise returns. It has retained its high-profile holding in English club Newcastle United. Other planned or existing projects have been cut back or cancelled: the Saudi Arabia Masters snooker tournament was scrapped two years into a planned 10-year deal; WTA funding for a season-ending event was withdrawn; and Saudi Arabia pulled out of hosting bids such as the 2035 Rugby World Cup and the 2029 Asian Winter Games.
PIF’s governor, Yasir al-Rumayyan, has said the fund is reviewing investments and reassessing priorities amid limited sporting returns and regional tensions. The fund’s 2026–30 strategy signals a shift from rapid expansion to an emphasis on sustained value creation, greater investment efficiency, improved governance and transparency.
Al-Rumayyan’s multiple roles — including chairing Newcastle United and senior positions at state-owned companies like Aramco and mining firm Ma’aden — mean the kingdom’s sporting footprint is backed by a web of state-linked actors. Aramco’s sponsorship of major events and PIF’s stakes in teams make that network complex and sometimes difficult to untangle.
Human rights organisations such as Human Rights Watch have argued that high-profile sports and entertainment deals have been used to soften criticism of Saudi Arabia’s rights record. While some athletes and sports bodies resisted or vocalised concerns, many organisations accepted Saudi funding and have become dependent on it, leaving them exposed if that funding is withdrawn.
Areas that could be vulnerable include motorsport, where regional security and sponsorship ties matter, along with horse racing, chess, handball and other disciplines that leaned heavily on Saudi backing. PIF’s messaging suggests future support will increasingly be tied to clear profitability and measurable returns, meaning sports and events may have to demonstrate financial sustainability to avoid being cut.
The kingdom’s sporting ambitions are now recalibrating from headline-grabbing deals toward a phase of more selective, returns-focused investment. Edited by Chuck Penfold