Saudi Arabia, which has long been looking for a global platform to showcase its sporting ambitions, is nearing the end of its search.
The Gulf state is close to acquiring a 10 percent stake in DAZN, the sports-only network privately funded by billionaire businessman Len Blavatnik, according to three people familiar with the negotiations who spoke on condition of anonymity because no deal has been reached. has been announced. Saudi in recent years has gone from being the biggest investor in the sports industry – buying more leagues, teams and stars to boost the economy of many sports.
This agreement, which will lead Saudi Arabia, through the unit of its private economic fund, to spend more than billions of dollars, has been discussed for at least a year, according to the three people, as a business of bleeding money and business. The Saudis form a close link.
The network, which is available as a platform for broadcast and cable networks worldwide, is already a major partner for Saudi Arabia’s growing portfolio of sports venues, including its soccer league, tennis championship and high-profile boxing events.
Sports have taken center stage in Saudi Arabia since its supreme leader, Crown Prince Mohammed bin Salman, announced plans in 2016 to wean the country off its dependence on oil by diversifying its economy amid parallel efforts to liberalize the conservative Muslim nation.
Those efforts have led to billions of dollars being poured into sports, giving opportunities to businesses like DAZN, which is poised to collapse even after losing more than $5 billion a year. As part of its investment, Saudi Arabia will gain a partner with a large footprint across multiple continents. It will not only provide live sports and other sports-based programs, but also serve as a billboard for Saudi Arabia. Treasure chest; Surj Sports Investment, a car used for shopping; and DAZN declined to comment.
One of the plans, according to people familiar with the talks, is for DAZN, a major subscription service, to stream content from Saudi Arabia for free. The move follows DAZN’s announcement last month that it will broadcast the FIFA Club World Cup for free next summer.
An investor like Saudi Arabia is unlike most market participants, said Gill Hind, director of TV at Enders Analysis, a research firm specializing in the media, entertainment and communications sectors. For the kingdom, financial success is more important than increasing the visibility of the sports venues it manages, including its top football league.
“It’s a very different proposition for the Saudis,” said Mr. Hind. “They’re doing it for different reasons than other investors are used to.”
Saudi Arabia’s investment in DAZN follows months of speculation. At the end of last year, the investment fund denied that it wanted to take part in the broadcaster.
IDAZN recently announced that it is paying approximately $1 billion to broadcast the new World Cup matches for clubs managed by the governing body for soccer, FIFA. Several other networks declined to bid or offered less than DAZN’s rerun of the event, which will take place in the United States this summer. Saudi Arabia has cultivated a close relationship with FIFA and, in particular, with its president, Gianni Infantino. Shortly after the DAZN deal was announced, Saudi Arabia was awarded the rights to host the FIFA Men’s World Cup in 2034.
Saudi officials have also been involved in talks for years about acquiring a stake in Qatar’s BeIN Media Group, owner of one of the world’s largest sports networks. Those talks took place against the backdrop of an ongoing legal battle between Saudi Arabia and Qatar, which is seeking billions of dollars in damages after accusing the major Gulf state of orchestrating a year-long fraud campaign against the network.
“BeIn Media Group is considering a number of strategic options,” the company said in a statement, following comments it made for the first time in 2022. The conflict first erupted during a standoff between Qatar and its regional neighbors in 2017, continuing despite normalization. relations with Saudi Arabia.
DAZN, based in London, is owned by Moscow-raised Mr Blavatnick. A citizen of the United States and Britain, he has spent years accumulating sports rights 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 British company register.
That loss didn’t stop the company from spending. In addition to being one of the top franchisees in the markets where it operates, it has also acquired other businesses. In December it bought Foxtel in Australia from Rupert Murdoch’s News Corp. in a deal worth $2.1 billion.
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