Unveiling Saudi Arabia's Shocking Plot to Upend Soccer's Global Hierarchy

Saudi Arabian club Al-Hilal's reported plan to make a $1.1 billion bid for French soccer superstar Kylian Mbappé has drawn criticism from skeptics who view it as sportswashing. The proposed bid includes $332 million to Mbappé's club, Paris Saint-Germain (PSG), and an astonishing $775 million salary for the World Cup winner for only one year. Despite Mbappé rejecting the offer in July, Neymar Jr. made the move to Al-Hilal a month later, leaving PSG for a transfer fee of approximately $98.5 million (€90 million) plus additional payments, according to reliable sources.

During a remarkable transfer window, Saudi Pro League (SPL) clubs invested almost $1 billion in securing the services of 94 overseas players from renowned leagues in Europe, including France's Ligue 1, Spain's La Liga, Italy's Serie A, Germany's Bundesliga, and the English Premier League. Deloitte's data confirms this significant expenditure.

Although Saudi Arabia's human rights track record remains troubling, the country's extensive spending spree demonstrates its strong determination to transform its domestic soccer league into a star-studded and internationally recognized competition.

Saudi clubs, several of which have been taken over by the nations sovereign Public Investment Fund (PIF), have already attracted some of the biggest names in the sport.

Five-time Ballon dOr winner Cristiano Ronaldo joined Al-Nassr on two-year contract.

Patricia de Melo Moreira/AFP/Getty Images

The SPL aims to enhance competitiveness on and off the field by attracting top global stars to the Gulf states. It is important to highlight that these foreign players will also contribute to the growth of young Saudi talent. In the recent summer transfer window, the government-controlled PIF significantly boosted the cumulative value of these four clubs, making them the most valuable in the nation, as estimated by the sports website Transfermarkt.

During the summer, the PIF, led by Saudi Crown Prince Mohammed bin Salman, assumed control of four prominent football clubs in the country: Al-Hilal, a national champion with 18 titles, Al-Ittihad and Al-Nassr, both nine-time champions, and Al-Ahli, a three-time champion.

2022 Ballon D'Or winner Karim Benzema has eagerly accepted an offer to join Al-Ittihad in the SPL after his contract with Spanish soccer titan Real Madrid came to an end. Numerous other prominent stars have also unquestionably embraced this opportunity.

The four teams owned by PIF have invested approximately $900 million (€835.1 million) in acquiring top international players during the recent European transfer window. This places them among the top 20 clubs worldwide in terms of transfer expenditure, alongside prominent soccer clubs from England, France, Germany, Spain, and Italy. Notably, Al Hilal, alone, surpassed the spending of PSG and Arsenal by paying over $378 million (€353 million), making it the second-highest spender of the year.

Joining five-time Ballon d'Or winner Cristiano Ronaldo, who has a two-year contract with Al-Nassr and is earning an astonishing estimated $200 million per year, are the newly acquired players. Saudi state-owned media states that this makes him the highest paid soccer player in the world. Today, 21 internationally renowned soccer players, regarded as the most expensive in Saudi Arabia based on transfer fees, are playing for one of the PIF-owned clubs.

The SPL is keeping quiet about the exact details of its financial investment, despite the cost. Chief operating officer Carlo Nohra has stated that revealing the salaries offered to players and coaches would not benefit the SPL competitively.

According to its latest filing, the PIF has $777 billion in assets under management and aims to surpass $1 trillion in the coming years. After acquiring Newcastle United in 2021, the PIF has shifted its focus to domestic investments. The club is now one of the highest spenders on players.

Saudi non-PIF owned clubs are also spending heavily on high-profile players. There have been reports suggesting that former Liverpool captain, 33-year-old Jordan Henderson, was offered an astonishing weekly salary of $870,000 (£700,000) in a potential $15 million (£12 million) transfer to Saudi team Al-Ettifaq. However, in a recent interview with The Athletic, Henderson dismissed these figures as inaccurate.

"Essentially, the signal is

Saudis love of soccer

," proclaimed Simon Chadwick, an esteemed professor of sport and geopolitical economy at SKEMA Business School, during his conversation with CNN. "With an abundance of funds at our disposal, we possess the ability to offer lucrative weekly wages amounting to 700,000 [GB pounds] to players nearing the end of their careers, while still maintaining the presence of Cristiano Ronaldo and actively participating in the transfer market for additional talents," explained Chadwick as he outlined the Saudi strategy to establish themselves as a dominant force in sports. He further emphasized that there are no financial limitations when it comes to achieving this goal.

Saudi Arabia is following the lead of other nations, such as China and Qatar, by investing considerable amounts of money to transform themselves into dominant forces in the sport of soccer. The effectiveness of their ambitious investment is yet to be determined, as it may either yield long-lasting results or simply resemble an expensive attempt at rebranding.

The national team of Saudi Arabia has made several appearances in the World Cup, while clubs from the country have achieved numerous Asian titles. The astonishing victory of Saudi Arabia over Argentina in the previous men's World Cup was widely celebrated as one of the most remarkable upsets in the history of the tournament. Consequently, King Salman bin Abdulaziz Al Saud of Saudi Arabia declared a national public holiday to honor this memorable triumph.

Al Nassr fans display their unwavering support during the Arab Club Champions Cup Group C game between the Saudi club and Zamalek at the King Fahd Sports City in Taif, Saudi Arabia on August 03, 2023. (Source: Stringer/Anadolu Agency/Getty Images)

Club games in the Middle Eastern nation have the ability to draw enormous crowds. According to Chadwick, matches such as Al-Ittihad against Al-Hilal attract crowds of 40, 50, or even 60,000 people, which is on par with the size of matches like Chelsea vs. Arsenal or Manchester United vs. Manchester City. Additionally, Saudi teams have found success by acquiring star players, even if they are considered to be past their prime, as mentioned by Kieran Maguire, co-host of "The Price of Football" podcast.

Maguire stated that from the perspective of the Saudi authorities, they are receiving a pre-existing product that is well-known, such as Benzema and Cristiano Ronaldo. However, Saudi Arabia's grand aspirations in sports extend beyond the SPL or Newcastle United, as they are also set to host the 2023 FIFA Club World Cup and are currently bidding to host the 2027 AFC Asian Cup.

The Gulf kingdom, Greece, and Egypt were reported to be considering a joint bid for the 2030 FIFA Men's World Cup. However, there are reports suggesting that the Gulf kingdom might withdraw its candidacy. On another note, the Royal Spanish Football Federation (RFEF) has reached an agreement to host the Spanish Super Cup in Saudi Arabia until 2029. This deal will result in an annual revenue of €35-45 million ($38-48 million) for the Spanish governing body.

Appealing to the youth

The most recent census in Saudi Arabia showed that the country has a population of 32.2 million people, with almost 42% of them being foreign nationals. Additionally, more than half of the Saudi population, which accounts for 51%, is under the age of 30. As per Saudi authorities, over 80% of this young population are engaged in playing, attending, or following soccer, which is the national sport of the country.

Chadwick suggests that the Saudi Arabian government aims to prevent radicalization and anti-government sentiment, similar to the Arab Spring, by providing its younger citizens with a prosperous soccer industry. He further emphasizes that besides the positive impacts on employment, revenues, export earnings, and inward investment, the security of the royal family is equally crucial.

The Arab Spring, a series of pro-democracy demonstrations that swept through the Middle East and North Africa in 2011, yielded varied outcomes. While protests led to the overthrow of four dictators in Libya, Yemen, Egypt, and Tunisia, instilling a momentary feeling of triumph for the protesters, the region has since witnessed the emergence of new conflicts that have dampened the momentum of popular movements.

Simultaneously, unsuccessful uprisings in Bahrain and eastern Saudi Arabia were met with prolonged crackdowns, while Syria continues to grapple with an ongoing civil war.

The current situation in Saudi Arabia represents the development of a fresh social agreement, aiming to meet the demands of the Gen Z population, according to Chadwick. He further elaborated, saying that if the people desire Ronaldo or first-rate football teams, those wishes will be fulfilled. If they wish for the World Cup to be hosted in Saudi Arabia, their wish will be granted. However, he emphasized that there should be no questioning of their decisions.

Maguire acknowledges that the investment in soccer is a component of a more extensive socio-economic strategy orchestrated by the Saudi authorities. Meanwhile, Chadwick informed CNN that there has been a notable rise in the amount of Saudi Arabians who have been apprehended by the authorities, particularly for sharing negative remarks about the country on social media platforms.

Amnesty International informed CNN that it has recorded a regression in human rights in Saudi Arabia. This includes a growing suppression of freedom of expression and an expanded utilization of counterterrorism and cybercrime legislation to stifle opposition. According to the organization, there has been a rise in criminal prosecutions from 2022 to 2023 compared to previous years. In 2022, Amnesty disclosed that the country witnessed the highest annual death toll in 30 years, with 196 individuals executed.

"Having a good reputation plays a critical role in attracting foreign investment. Mohammed bin Salman, despite his substantial financial resources, relies on foreign investment to achieve his goal of economic diversification," elaborates James Dorsey, author of the syndicated column and blog, "The Turbulent World of Middle East Soccer."

As the largest exporter of crude oil in the world, Saudi Arabia heavily relies on revenue from fossil fuel sales, which account for nearly two-thirds of its income. However, due to consistently low oil prices that fail to meet the country's budget requirements, Saudi Arabia is actively seeking foreign investment while also working to increase oil prices.

Projection suggests that the kingdom has a time frame of approximately 20 years to diversify its economy, ensuring greater resilience. This is particularly important for funding its dedicated projects under Vision 2030, which include the ambitious $500 billion Neom city, an extensive 106-mile linear city named The Line, and a futuristic plan to transform the capital.

"Part of Mohammed bin Salman's expansive vision for 2030 involves reducing Saudi Arabia's dependence on natural resources and transitioning to a post-fuel economy. This will involve focusing on sectors like tourism and entertainment. By establishing itself as a hub for major sporting events, Saudi Arabia can effectively attract interest to the country," Maguire explained.

CNN has contacted the Saudi Ministry of Sport to obtain their statement regarding allegations that the nation is diminishing human rights while using soccer as a means of improving its public image.

Regarding previous accusations of Saudi Arabia's supposed "sportswashing," Prince Abdulaziz bin Turki Al-Faisal, the sports minister of the kingdom, responded by saying, "Individuals who are unfamiliar with Saudi Arabia and have never set foot in the country confidently speak about it as if they have resided there for several decades. Therefore, I continuously urge these people to visit Saudi Arabia and truly experience it firsthand."

"See what it is, see the people, meet the people. Look at what the country is doing for the future of the people in Saudi, then you can criticize as much as you like," he added.

Lack of transparency: Saudi threatens new systems of governance in sports

According to Maguire, Saudi Arabia has already disrupted the golf industry and believes they can do the same with soccer, albeit on a smaller scale, but ultimately generating more interest. In 2021, PIF, the government-controlled bank, funded LIV Golf with a reported cost of $2 billion, enticing numerous top players from the PGA Tour and DP World Tour with substantial prize money. PGA Tour board member Jimmy Dunne expressed concerns about the possibility of Saudi Arabia "owning golf."

Earlier this year, the PGA Tour from the US announced its partnership with LIV Golf, a breakaway organization backed by Saudi Arabia. This collaboration ended a long-standing feud in the men's professional game. Dunne, during a Senate hearing discussing the truce between the tours, stressed that the governing body had to make this decision in order to maintain a certain level of control, considering the vast resources and expansive ambitions of LIV Golf.

Last month, Aleksander Ceferin, the president of UEFA, the governing body of European football, disregarded the competitive challenge that the SPL could present, stating that top players like Mbappe and Haaland have no aspirations to play in Saudi Arabia during the peak of their careers.

"No one knows the whereabouts of the players when discussed, which is a common topic I encounter. However, Liverpool manager Jurgen Klopp holds a contrasting perspective on this matter. He highlights the discrepancy that arises due to the extended duration of the Saudi summer transfer window, which remains open even after European clubs have closed theirs. Klopp expresses uncertainty regarding the stability of this situation and anticipates the forthcoming two weeks to reveal the magnitude of the challenge. Moreover, he emphasizes that it becomes increasingly challenging for clubs to respond effectively to developments in Saudi Arabia once their own transfer window has concluded."

"I'm unsure of the eventual outcome, but it seems more like a looming threat or cause for concern rather than something insignificant. I fail to comprehend how we can possibly ignore it during these critical times. What options do we have?" he further expressed.

Nevertheless, the newly appointed director of football at SPL, Michael Emenalo, contends that Saudi soccer's actions are comparable to those of the Premier League.

"There was a time when Italy took center stage, and then there was a time when Spain grabbed the spotlight. What the industry is seeking is a level playing field, an opportunity to compete, and a chance to surpass existing standards," stated Emenalo in a press release sent to CNN.

Jordan Henderson, seen alongside Al-Ettifaq coach Steven Gerrard, reportedly received a staggering weekly salary of £700,000, approximately $15.4 million (£12 million), in his move from Liverpool to the Saudi team Al-Ettifaq.

According to CNN, Carlo Nohra, the newly appointed Chief Operating Officer of the Saudi Pro League, stated that their strategy involves not placing a limit on money to attract global stars. However, experts argue that the lack of transparency in Saudi Arabia sets it apart from other countries.

UEFA, the governing body of European soccer, enforces financial fair play (FFP) regulations to control team spending, while Major League Soccer (MLS) in the United States imposes a salary cap on its clubs.

According to Nohra, the country aims to generate 0.3% of its GDP from soccer, mirroring the influence of the Premier League on the UK economy. Currently, soccer contributes a minuscule fraction, around "0.000 something," to the nation's GDP.

"They currently have no chance of reaching that figure," explained Maguire. However, he added that the SPL could potentially make its way into the top 10 among the world's domestic leagues given the significant amount of money they are investing.

Maguire stated that he believes they have a realistic approach and that they do not claim to surpass La Liga, the Premier League, or the major European leagues. According to the Peterson Institute for International Economics, the PIF performed poorly in 2019 when compared to other sovereign wealth funds, particularly in terms of governance, transparency, and accountability. It ranked in the bottom 10 out of 64 funds, slightly above the Russian Direct Investment Fund.

CNN has contacted the PIF to request additional comments regarding their investments in sports, specifically soccer and golf. They have also addressed criticisms regarding the lack of transparency. Chadwick expressed worries about how the absence of financial regulations for Saudi clubs could undermine UEFAs FFP regulations, along with the Premier League's regulations, and potentially affect FIFA's governance systems.

The US golfing and political spheres have raised concerns about the lack of transparency in Saudi Arabia's wealth fund. In response, the Senate Permanent Subcommittee on Investigations recently initiated an inquiry into the agreement between the PGA Tour and the PIF-controlled LIV Golf. Chadwick, in an interview with CNN, highlighted the need for an independent organization to monitor the financial reporting of all leagues, as the accurate financial information remains uncertain.

Chadwick states that the lack of information and uncertainty is disguised by lobbying tactics, aimed at manipulating player transfer values and salaries for political reasons. He further suggests that this behavior is reminiscent of football players being treated as geopolitical pawns.

CNNs Chris Isidore, Eoin McSweeney, Eleni Giokos, Andrew McNicol, Tamara Qiblawi and Andrew Raine contributed reporting.