Saudi Arabia’s latest investment into the world of professional sports seems to be via sports streamer DAZN.
Per Tariq Panja of The New York Times, Saudi Arabia is closing in on a $1b deal to acquire up to 10% of DAZN, a worldwide sports streaming network with numerous valuable live sports rights across the globe. The deal will reportedly be funded by Saudi Arabia’s sovereign wealth fund, the same pool of money used to float ventures like LIV Golf and the acquisition of Cristiano Ronaldo for its pro soccer league.
DAZN is already the country’s largest broadcast partner as the streamer airs the Saudi Pro League, as well as tennis championships and boxing events that take place in Saudi Arabia. As part of the investment, Saudi Arabia expects DAZN to air sporting events emanating from the kingdom for free worldwide.
The investment is part of a larger effort by Saudi Arabia to normalize its perception on a global stage through professional sports. “It will not only provide a platform for live sports and other sports-based programming, but also act as a billboard for Saudi Arabia,” Panja writes.
The New York Times report comes on the heels of DAZN’s recent agreement to pay $1b for broadcast rights to the 2025 FIFA Club World Cup hosted by the United States. The bid was orders of magnitude higher than several other broadcast partners FIFA propositioned for the event. Shortly after this deal was announced, FIFA awarded Saudi Arabia the 2034 World Cup.
Clearly, factors other than the economics are driving this deal.
“For the kingdom, financial success matters less than the increased visibility for the sports properties it owns, including its top soccer league,” media analyst Gill Hind suggested.
DAZN itself has hemorrhaged money for years, only recently set to break even after more than $5 billion in losses.
About Drew Lerner
Drew Lerner is a staff writer for Awful Announcing and an aspiring cable subscriber. He previously covered sports media for Sports Media Watch. Future beat writer for the Oasis reunion tour.