Is Saudi Arabia’s sports spending boom losing momentum?

Saudi Arabia’s massive investments in sports — from football to snowboarding — have been one of the defining trends in the industry of the past decade. But recently, the kingdom has begun stepping back from several major events and contracts, raising questions over whether the Saudi sports boom is starting to cool down.

The most high-profile retreat came in golf last week, when Saudi Arabia’s sovereign wealth fund withdrew support for the men’s professional golf tour LIV Golf. The fund, formally known as the Public Investment Fund (PIF), stated the “substantial investment” required to sustain the tournament long term is “no longer consistent with the current phase of PIF’s investment strategy.”

Founded in 2021, LIV Golf broke away from the established PGA Tour and lured many top players with lucrative contracts. According to an article on the apparent pull-back of the kingdom penned by Deutsche Welle, LIV now faces an uncertain future without fresh investment, while the possible return of players to the PGA Tour remains a contentious issue.

A similar shift has emerged in football. In April, PIF sold a 70% stake in Saudi Pro League club Al Hilal, describing the move as part of a “strategy to maximise returns and redeploy capital within the domestic economy.”

At the same time, PIF has shown no indication that it plans to sell its stake in Newcastle United and still appears committed to maintaining investments in football ahead of Saudi Arabia hosting the 2034 FIFA World Cup. Other sports, including MMA, also appear to remain on relatively stable footing for now.

However, the retreat from sports-related spending extends beyond clubs and leagues. Several events originally scheduled to be hosted in Saudi Arabia have now been scrapped, too.

These include the Saudi Arabia Masters snooker tournament, which was cancelled last week despite being only two years into a 10-year agreement. The Women’s Tennis Association (WTA) has also reportedly lost Saudi funding, while a planned season-ending event was removed. In addition, Saudi Arabia has abandoned plans to host the 2035 Rugby World Cup and the 2029 Asian Winter Games.

According to DW, the reasons appear to be both economic and political. PIF Governor Yasir al-Rumayyan said last week that the fund was “reviewing its investments and deals” and “reassessing its priorities” following the fallout from the US-Israel war with Iran, as well as the relatively weak financial returns from some sports investments.

“The 2026-30 strategy marks a natural evolution as PIF moves from a period of rapid growth and acceleration to a new phase of sustained value creation, with a strengthened focus on maximising impact, raising the efficiency of investments, and applying the highest standards of governance, transparency and institutional excellence,” the PIF said in a press release.

While there are no clear signs of a withdrawal yet, the outlet warns that Formula One could also eventually feel the effects of Saudi Arabia’s recalibrated strategy. The kingdom has significant interests in the sport, with state oil giant Aramco serving as a major sponsor and PIF holding a stake in the Aston Martin Aramco Formula One Team.

Saudi Arabia also hosts one of the annual Grand Prix races, although this year’s event was cancelled amid security concerns and travel disruptions linked to the conflict with Iran.

By Nazrin Sadigova