In recent times, there has been an increase in investments by sovereign wealth funds in sports. Saudi Arabia, represented by the country’s Public Investment Fund (PIF), currently own Newcastle United.
Moreover, Bloomberg reported on Thursday that the PIF has expressed interest in potentially acquiring another European club.
To diversify the Saudi economy, boost the country’s worldwide reputation, and stimulate tourism, Crown Prince Mohammed bin Salman has made sports a priority.
The 2030 FIFA World Cup bid will be a culmination of the process, as happened with Qatar prior to 2022.
Saudi Arabia has set aside billions to develop a variety of sports, from golf to Formula 1 and professional boxing.
Even the sports industry in the United States is increasingly benefiting from the infusion of money from the Middle East.
In a notable development the NBA has recently welcomed its inaugural investment from a sovereign wealth fund. In addition, it appears MLS could be the next American sports league to permit such investments in teams.
What did Graber say about possibility of taking Saudi Arabian investment?
MLS commissioner Don Garber announced on Thursday that the league’s board members will address the subject of sovereign wealth fund investments. This will take place at an upcoming meeting in Washington.
He also mentioned that the board is taking cues from other major US sports leagues. This includes hockey and basketball, which have already explored this avenue.
“Beyond the uniqueness of our structure, where we have private equity investing in our league. Ares Capital invested in our Miami team just very recently. The NHL and NBA have looked at having sovereign funds and pension funds. The MLS is looking at the same thing”, Garber declared in an interview on Bloomberg TV.
Graber on Lionel Messi’s move to MLS
Furthermore, MLS club, Inter Miami, successfully wooed Lionel Messi away the wealth of Al-Hilal, which receives funding from the PIF.
“Having him say Major League Soccer is his league of choice, not Saudi Arabia, not FC Barcelona, it adds just a level of excitement and credibility and just enormous enthusiasm behind our league,” he said of Messi.
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