What should we learn from this merger between the two rival organizations in golf, the PGA and the LIV? That the Saudi Arabian Investment Fund (PIF) becomes the major sponsor of the circuit. Nothing more stunning to learn.
But hey, should we really be surprised? In Saudi Arabia, anything is possible. The money goes out the windows. As the expression describes it so well in English: “Sky is the limit.”
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The controversial new LIV golf tour rocked the professional sports ecosystem when it announced its creation in 2022. By luring in hundreds of millions of dollars of PGA stars, it tried to destabilize its American rival.
But, a twist on Tuesday: the two opposing parties announced a merger agreement that will bury the hatchet. To everyone’s surprise.
In Saudi Arabia, money is not only an inexhaustible source but also a very controversial one.
In the world of golf in particular, it has managed to attract stars like Phil Mickelson and Dustin Johnson, who have enriched themselves by 200 million and 150 million dollars respectively.
Benzema after Ronaldo
Elsewhere, Saudi Arabia makes no secret of its ambitions to revolutionize the soccer world by investing billions in it.
After convincing Cristiano Ronaldo last January (a 575 million contract for two and a half years), she did the same with Karim Benzema who joins Al-Ittihad and Saudi Arabia, it was confirmed on Tuesday. It also tends the hook to other glories of the specialty including Lionel Messi and Hugo Lloris.
The Saudi Pro League dreams of attracting them, which would allow the circuit to bring together the four players who have won the famous Ballon d’Or over the past two decades, despite the fact that this quartet is on average 36 years old.
Saudi Arabia also wants to organize the Soccer World Cup in 2030 or 2034. At the price it will cost.
And in Formula 1
Saudi Arabia’s Public Investment Fund (PIF), with nearly $620 billion in assets, is headed by Crown Prince Mohammed bin Salman who, you will understand, fears the end of the world more than the end of the month.
His passion for sport is known. He is the owner of Newcastle United soccer club, of the Premier League in England.
Through the national hydrocarbon company and the world’s largest oil company Aramco, it is one of the six major partners of Formula 1 and sponsor of the Aston Martin team, led by Montreal billionaire Lawrence Stroll.
On the F1 calendar for three years, Saudi Arabia wants a second race on its territory from 2025.
two hundred investments
This investment fund is present everywhere and not only in the world of sport. Its tentacles are deployed across the planet, and this, in several sectors of activity including real estate and finance.
When a passenger boards a Boeing aircraft, they contribute to the fund. When viewers watch the Disney Channel or a family visits Mickey Mouse Country, they also contribute to the said fund.
The PIF, according to the most recent data available, has approximately 200 investments across the globe. The Saudi plan foresees the expansion of the portfolio to more than 2 trillion dollars by 2030.