Gulf investment in sport is facing headwinds as geopolitical tensions and economic realities bite. Saudi Arabia’s $5bn spend on LIV Golf has yielded little return, with stars like Jon Rahm walking away and the tour now seeking revival without Saudi backing. Manchester City’s Abu Dhabi-linked ownership is under scrutiny, with chatter about a potential exit from English football.
Formula 1 faces uncertainty over races in Qatar and Abu Dhabi due to regional risks, highlighted by a missile strike at Riyadh airport. Despite past successes like the Qatar 2022 World Cup and upcoming bids for the 2036 Olympics and 2034 World Cup, the soft power strategy is being tested. Bankers note a lack of serious buyers in football M&A, with clubs like Everton and Crystal Palace exploring sales amid limited investor appetite.
The article draws a parallel between upselling at McDonald’s and investors expanding their stakes in clubs, warning that reality may soon expose overexposed investments.
Source: Financial Times Companies · Summarized by HeadlinesBriefing