Saudi Arabia has long sought a global platform to showcase its sporting ambitions, but its search is nearing an end.
Three people familiar with the discussions, who spoke on condition of anonymity, said the Persian Gulf kingdom is the largest producer of DAZN, the sports network privately funded by billionaire businessman Len Blavatnik. The company is reportedly close to acquiring a percentage stake. No agreement has been announced. Saudi Arabia has grown from a strong start to become the largest investor in the entire sports industry in recent years, investing in various leagues, teams and star players to upend the economics of many sports.
The deal, which would see Saudi Arabia disburse more than $1 billion through a division of its sovereign wealth fund, has been under discussion for at least a year, according to three people involved in the outflow business and the Saudi government. It is said that there is Saudi Arabia has forged closer ties.
The network is available as a streaming platform and cable network around the world and is already the largest partner for Saudi Arabia's growing portfolio of sports facilities, including soccer leagues, tennis championships and top-level boxing events.
Saudi Arabia's de facto leader, Crown Prince Mohammed bin Salman, announced in 2016 that the country would diversify its economy away from oil dependence in a parallel effort to liberalize the conservative Islamic nation. Sports has become an important area for Saudi Arabia since announcing the plan.
These initiatives are pumping billions of dollars into sports and providing opportunities for companies like DAZN, which is still able to break even after years of losses totaling more than $5 billion. As part of the investment, Saudi Arabia will acquire a partner with large footprints across multiple continents. It not only provides a platform for live sports and other sports-based programming, but also serves as a billboard for Saudi Arabia. wealth fund. Surj Sports Investment, vehicle used for purchase. DAZN declined to comment.
One plan is for DAZN, which is primarily a subscription service, to broadcast Saudi content for free, according to people familiar with the discussions. The move follows DAZN's announcement last month that it would broadcast the FIFA Club World Cup for free next summer.
Investors like Saudi Arabia are different from most market participants, said Gil Hind, director of television at Enders Analysis, a research firm focused on media, entertainment and communications. For Saudi Arabia, increasing the visibility of its sports facilities, including its top soccer league, is more important than financial success.
“This is a completely different proposition for Saudi Arabia,” Hind said. “They're doing it for different reasons than other investors.”
Saudi Arabia's investment in DAZN comes after months of speculation. Late last year, the investment fund denied any intention to own a stake in the broadcaster.
DAZN recently announced it paid about $1 billion to broadcast the new World Cup for clubs owned by soccer governing body FIFA. Several other networks either declined bids or offered lower multiples than DAZN for the event, which will be held in the U.S. this summer. Saudi Arabia has had close ties with FIFA, particularly with president Gianni Infantino. Shortly after the deal with DAZN was announced, Saudi Arabia won the right to host the 2034 FIFA Men's World Cup.
Saudi officials have also been involved in negotiations for years over a stake in Qatar's BeIN Media Group, which owns the world's other largest sports network. These talks took place against the backdrop of the ongoing legal battle between Saudi Arabia and Qatar. Qatar accuses the Gulf state of orchestrating a years-long piracy campaign against the network and is seeking billions of dollars in damages.
“BeIn Media Group is considering a number of strategic options,” the company said in a statement, repeating comments it first made in 2022. The conflict first flared up in 2017 during a vicious spat between Qatar and its neighbors and has dragged on despite normalization. Regarding relations with Saudi Arabia.
London-based DAZN is owned by Blavatnik, who grew up in Moscow. A national of both the United States and the United Kingdom, he has spent years trying to acquire the rights to the sport, but has also suffered huge financial losses in the process. The latest set of DAZN accounts are listed as overdue, according to Companies House, the UK company registrar.
Even with these losses, the company hasn't stopped spending. In addition to being one of the top rights holders in the markets in which it operates, the company also acquires other businesses. In December, it acquired Australia's Foxtel from Rupert Murdoch's News Corp in a deal worth about $2.1 billion.
