Saudi Arabia has long been looking for a global platform to showcase its sporting ambitions, but its search is nearing its end.
The Gulf kingdom is close to acquiring up to 10% of DAZN, a sports network privately funded by billionaire Len Blavatnik, according to three people familiar with the matter. In recent years, Saudi Arabia has grown from humble beginnings to become the biggest investor in the entire sports industry – buying up a series of leagues, teams and stars in a bid to upend the economics of many sports.
The deal, which would see Saudi Arabia spend more than $1 billion through a unit of its sovereign wealth fund, has been discussed for at least a year amid hemorrhaging cash and the with financial difficulties.
The network, which operates as a streaming platform and global cable network, is already the largest partner in Saudi Arabia’s growing sports portfolio, which includes football leagues, tennis championships and top-level boxing events.
Sports have been an important area for Saudi Arabia since its de facto leader, Crown Prince Mohammed bin Salman, announced plans in 2016 to diversify the economy away from oil. Liberalize this conservative Muslim country.
Those efforts have resulted in billions of dollars being poured into sports, providing an opportunity for businesses like DAZN, which is on track to break even after years of losses totaling more than $5 billion. As part of the investment, Saudi Arabia will gain a partner with extensive operations across multiple continents. It will not only provide a platform for live sports and other sports programming, but will also serve as an advertising billboard for Saudi Arabia. Wealth Fund; Surj Sports Investment, used to purchase the vehicle; DAZN declined to comment.
One plan is to let DAZN, which is primarily a subscription service, broadcast content from Saudi Arabia for free, according to people familiar with the matter. The move comes after DAZN announced it will broadcast the FIFA Club World Cup free-to-air next summer.
Gill Hind, director of television at Enders Analysis, a research firm specializing in the media, entertainment and telecoms industries, said investors like Saudi Arabia are different from most market participants. For Saudi Arabia, financial success is less important than the increased visibility of the sports industry it owns, including its top-flight football league.
“This is a very different proposition for Saudi Arabia,” Mr. Hind said. “Their reasons for doing this are different than the typical reasons for other investors.”
Saudi Arabia’s investment in DAZN comes after months of speculation. Late last year, the investment fund denied wanting to take a stake in the broadcaster.
DAZN recently announced that it will spend approximately $1 billion to broadcast a new World Cup for clubs owned by football’s governing body FIFA. Several other networks either declined to bid or offered lower bid multiples than DAZN, which will take place in the United States this summer. Saudi Arabia has developed a close relationship with FIFA, particularly its president Gianni Infantino. Shortly after the DAZN deal was announced, Saudi Arabia secured the rights to host the 2034 FIFA Men’s World Cup.
For years, Saudi officials have also been involved in talks to buy a stake in Qatar’s BeIN Media Group, which owns another of the world’s largest sports networks. The talks come against the backdrop of an ongoing legal battle between Saudi Arabia and Qatar, which is seeking to Billions of dollars in compensation.
“BeIn Media Group is considering a range of strategic options,” the company said in a statement, echoing comments it first made in 2022. The dispute first broke out and despite the normalization of relations, the dispute continues.
DAZN is headquartered in London and owned by Mr. Blavatnick, who grew up in Moscow. A U.S. and British citizen, he spent years amassing sporting rights but suffered huge financial losses in the process. DAZN’s latest account is listed as overdue, according to UK companies registrar Companies House.
Those losses haven’t stopped the company from spending. In addition to becoming one of the largest rights holders in the markets in which it operates, it has been acquiring other businesses. In December, it acquired Australia’s Foxtel from Rupert Murdoch’s News Corp in a deal worth about $2.1 billion.
