Why Saudi Arabia wants all the sports

Summary

The video explores Saudi Arabia's multi-billion dollar investments in sports, suggesting a strategy of 'sportswashing' to cleanse its image while addressing human rights concerns. It delves into the country's economic reliance on oil, the Vision 2030 plan, and the potential influence of sports on both global diplomacy and domestic stability. The narrative questions whether sports investments are purely for economic gain or a means to shape international perceptions and maintain internal control.

Takeaways

• 🏴󠁧󠁢󠁥󠁮 Newcastle United, a football club in Northeastern England, joined the English Football League in 1893 and experienced early success but has not won a major trophy since 1955.
• 👑 The club has seen multiple ownership changes without significant success until its acquisition by Saudi Arabia's sovereign wealth fund in 2021, which marked a significant shift for the club.
• 💰 Saudi Arabia has invested over $10 billion in various sports, including soccer, auto racing, boxing, wrestling, and golf, as part of a broader strategy beyond just Newcastle United.
• 🌐 The term 'sportswashing' refers to using sports to cleanse a country's image and reputation, with historical examples including Hitler's 1936 Olympics and the 1978 FIFA World Cup in Argentina.
• 👁️ Saudi Arabia's leaders have been accused of human rights abuses, including jailing and executing dissidents, suppressing women's and LGBTQ+ rights, and involvement in the murder of journalist Jamal Khashoggi and the war in Yemen.
• 🕊️ The Al Saud family's rule in Saudi Arabia has been characterized by strict enforcement of Wahhabi Islam, including harsh dress codes, gender segregation, and limited rights for women.
• 🛑 Oil has been the backbone of Saudi Arabia's economy and political power, providing wealth and global influence, but the country has shown little incentive to diversify its economy.
• 📉 The demand for oil is predicted to decline in the late 2020s, posing a significant threat to Saudi Arabia's economy and political stability.
• 🛍️ Mohammed bin Salman (MBS) has initiated economic and social reforms as part of his Vision 2030 Plan, aiming to diversify the economy and reduce dependence on oil.
• 🏆 MBS's Vision 2030 includes the PIF, a $700 billion sovereign wealth fund investing in new industries and global companies to generate wealth and influence beyond oil.
• 🤝 Saudi Arabia's investments in sports, such as purchasing Newcastle United and creating new sports leagues, are seen as a means to build international influence and potentially appease its young population.

Q & A

What significant event occurred for Newcastle United in 1955?

In 1955, Newcastle United won the English League's top trophy, which was the last major success for the club until the recent acquisition by Saudi Arabia's sovereign wealth fund.

What is the term 'sportswashing' and how is it defined in the script?

Sportswashing is defined as the deployment of sports for the purpose of cleansing a country's image and reputation, often used to divert attention from controversial political or social issues.

How has Saudi Arabia's investment in sports been perceived by some critics?

Critics perceive Saudi Arabia's investment in sports as a form of sportswashing, suggesting that it is an attempt to improve the country's image on the global stage while ignoring human rights issues and political controversies.

What historical examples of sportswashing are mentioned in the script?

The script mentions Adolf Hitler hosting the 1936 Olympic Games, Argentina's military junta hosting the 1978 FIFA World Cup, and Vladimir Putin hosting events in 2014 and 2018, all while engaging in oppressive actions.

What are some of the human rights issues and controversies associated with Saudi Arabia mentioned in the script?

The script mentions jailing and executing dissidents, suppression of women's and gay rights, the murder of journalist Jamal Khashoggi, and the country's involvement in the war in Yemen.

What is the role of oil in Saudi Arabia's economy and political stability?

Oil has been the backbone of Saudi Arabia's economy, providing the government with vast wealth and influence. It has also been used to secure support and protection from other countries, helping the regime maintain power.

What is the significance of Mohammed bin Salman's (MBS) Vision 2030 Plan?

MBS's Vision 2030 Plan aims to diversify Saudi Arabia's economy away from oil dependency by investing in new industries, creating jobs, and building a new source of income and influence through a $700 billion sovereign wealth fund called the PIF.

How has MBS's leadership impacted the role of Wahhabi Islam in Saudi Arabia?

MBS has significantly reduced the influence of Wahhabi Islam, implementing reforms such as allowing women to drive, work, and travel alone, and permitting social events like music festivals and movie theaters.

What is the connection between Saudi Arabia's investment in sports and its influence abroad?

Saudi Arabia's investment in sports is seen as a strategy to build influence in other countries, particularly in the West, by appealing to sports fans and leveraging the loyalty and passion associated with sports teams.

How does the script suggest Saudi Arabia is using sports to address internal challenges?

The script suggests that sports can serve as a form of entertainment to engage the young population and potentially reduce unrest, as a high percentage of Saudis are under 35 and face unemployment.

What is the potential impact of Saudi Arabia's sports investments on the global sports landscape?

The investments could lead to a more protectionist approach by the U.S. and Europe regarding sports, but also present an opportunity for these countries and organizations to use their leverage to push for change in Saudi Arabia.

Outlines

00:00

🏆 Newcastle United's Acquisition by Saudi Sovereign Wealth Fund

The first paragraph introduces Newcastle United, a football club from Northeastern England with a storied history but no major wins since 1955. It details the club's recent acquisition by Saudi Arabia's multi-billion dollar sovereign wealth fund in 2021, which is a significant event not just for the club but also for the country's broader sports investment strategy. The paragraph also introduces the concept of 'sportswashing,' where sports are used to cleanse a country's image, with historical examples including Hitler's 1936 Olympics, Argentina's 1978 FIFA World Cup, and Russia's 2014 and 2018 World Cups. The narrative then shifts to highlight Saudi Arabia's human rights issues and its claim that its sports investments are for economic reasons.

05:01

📉 Saudi Arabia's Economic Dependency on Oil and Diversification Efforts

The second paragraph delves into Saudi Arabia's economic reliance on oil and the challenges it faces as global demand for oil declines. It discusses the country's need to diversify its economy and the role of Mohammed bin Salman (MBS) in driving this change through Vision 2030. The PIF, a $700 billion sovereign wealth fund, is highlighted as a key instrument for investment in new industries, infrastructure, and global companies to generate wealth and influence. The paragraph also touches on MBS's social reforms, such as granting women more rights and easing restrictions on public entertainment, as part of the economic transformation.

10:02

🤝 Saudi Arabia's Strategic Sports Investments for Influence and Internal Control

The third paragraph examines Saudi Arabia's aggressive investment in sports as a means to gain international influence and control its domestic population. It discusses the purchase of Newcastle United and how it serves to build goodwill and influence in the UK. The narrative compares Saudi Arabia's strategy to that of its neighbors, such as Abu Dhabi's acquisition of Manchester City and Qatar's purchase of Paris St. Germain. The investments in sports are seen as a way to entertain the young population and mitigate potential unrest, drawing parallels to historical tactics of providing 'bread and circuses' to maintain control.

15:03

🌐 The Global Implications of Saudi Arabia's Sportswashing and Future Prospects

The final paragraph contemplates whether Saudi Arabia's sports investments can be considered sportswashing or a genuine effort to secure its future. It suggests that the perception varies depending on one's geographical and political stance. The paragraph also considers the potential for global sports organizations to leverage their influence to push for change within Saudi Arabia. It ends with a note on the upcoming videos in the series, which will focus on the Saudi Football League and LIV Golf, inviting viewer engagement and setting the stage for further discussion on the topic.

Keywords

💡Newcastle United

Newcastle United is a professional football club based in Newcastle upon Tyne, England. It is a central subject in the video, illustrating the impact of foreign investment in sports. The club's acquisition by Saudi Arabia's Public Investment Fund (PIF) in 2021 marked a significant shift in its fortunes, as it was previously struggling in the English Premier League.

💡Sportswashing

Sportswashing is a term used to describe the practice where a country uses sports to improve its image or distract from negative aspects of its reputation. In the video, it is suggested that Saudi Arabia may be engaging in sportswashing by investing heavily in various sports teams and events to cleanse its image amidst human rights concerns and geopolitical conflicts.

💡Sovereign Wealth Fund

A sovereign wealth fund (SWF) is a state-owned investment fund that invests globally in various assets. The video discusses how Saudi Arabia's Public Investment Fund (PIF), a multi-billion dollar SWF, has been used to acquire Newcastle United and invest in sports as part of a broader economic strategy.

💡Al Saud

Al Saud refers to the ruling royal family of Saudi Arabia. The video explains that the Al Saud family has historically used a combination of religious influence and oil wealth to maintain power. The modernization efforts under Crown Prince Mohammed bin Salman (MBS) are part of a strategy to diversify the Saudi economy and maintain control.

💡Wahhabi movement

The Wahhabi movement is an ultra-conservative sect of Sunni Islam that has significantly influenced Saudi Arabia's societal norms and laws. The video describes how the Al Saud regime has historically enforced strict Wahhabi laws, but recent reforms under MBS have started to reduce this influence.

💡Oil Dependency

Oil dependency refers to an economy's heavy reliance on oil production and export for revenue. The video highlights how Saudi Arabia's economy has been traditionally dependent on oil, providing wealth and political influence but also making it vulnerable to fluctuations in global oil demand.

💡Vision 2030 Plan

Vision 2030 is an economic and social reform program initiated by Saudi Arabia's Crown Prince Mohammed bin Salman. The video outlines how the plan aims to diversify the Saudi economy away from oil, with a focus on developing new industries and improving the quality of life for citizens.

💡Public Investment Fund (PIF)

The Public Investment Fund (PIF) is Saudi Arabia's main sovereign wealth fund, tasked with investing in various sectors to generate wealth and influence. The video discusses PIF's significant investments in sports, real estate, and technology as part of the Vision 2030 Plan.

💡Influence

Influence, in the context of the video, refers to the soft power that Saudi Arabia is seeking to gain through its investments in sports. The video suggests that by buying and improving sports teams, Saudi Arabia is not only trying to improve its international image but also to exert influence in other countries.

💡Youth Unemployment

Youth unemployment is a significant issue in Saudi Arabia, with a high percentage of young people without jobs. The video posits that investing in sports and entertainment could serve as a strategy to engage and placate the young population, reducing the risk of social unrest.

💡Mohammed bin Salman (MBS)

Mohammed bin Salman, often referred to as MBS, is the Crown Prince of Saudi Arabia and the country's de facto ruler. The video discusses his role in initiating economic and social reforms, as well as his controversial actions, such as the murder of journalist Jamal Khashoggi.

Highlights

Newcastle United, a football club in Northeastern England, joined the English Football League in 1893 and experienced a trophy drought since 1955 until its acquisition by Saudi Arabia's sovereign wealth fund in 2021.

Saudi Arabia's multi-billion dollar sports investment, including $10 billion on sports teams, events, and sponsorships, raises questions about 'sportswashing' to cleanse the country's image.

Sportswashing is defined as the use of sports to improve a country's reputation, historically seen with Adolf Hitler, Argentina's military junta, and Vladimir Putin.

Saudi Arabia's human rights record includes jailing and executing dissidents, suppressing women's and LGBTQ+ rights, and the murder of journalist Jamal Khashoggi.

The Al Saud family's rule in Saudi Arabia is intertwined with the ultra-conservative Wahhabi movement, enforcing strict societal laws.

Oil has been the backbone of Saudi Arabia's economy, providing wealth, influence, and a means to maintain power through citizen dependency.

The decline in global oil demand threatens Saudi Arabia's economy and power, necessitating a shift towards economic diversification.

Crown Prince Mohammed bin Salman (MBS) is leading Saudi Arabia's economic and social transformation, reducing the influence of Wahhabi Islam and granting women more rights.

MBS's Vision 2030 Plan includes a $700 billion sovereign wealth fund aimed at creating new wealth and influence through investments in various sectors.

The PIF's investment in Newcastle United demonstrates how sports can be a tool for building influence, both economically and politically.

Saudi Arabia's investments in sports are part of a broader strategy to gain influence globally, following the examples of Abu Dhabi and Qatar.

Sports are seen as a means to control the Saudi population, particularly the young, by providing entertainment and potentially reducing unrest.

Saudi Arabia's bid to host major sporting events like the FIFA World Cup and the Olympic Games is part of its ambition to become a global sports hub.

The global sports community has the leverage to push for change in Saudi Arabia, given the country's significant investments and reliance on sports.

The term 'sportswashing' may be insufficient to describe Saudi Arabia's motives, as the country's future and economic survival are at stake.

Saudi Arabia's sports investments are part of a larger geopolitical game, with potential implications for global power dynamics and the country's domestic policies.

Transcripts

- In Northeastern England,

there is a football club called Newcastle United.

It joined the English Football League way back in 1893,

and then won several trophies in the early 1900s.

In 1955, it won the English League's top trophy,

but since then it hasn't won a thing.

It was bought and sold by several generations of owners,

but none of them could bring success.

All the while its fans grew frustrated.

In 2021, Newcastle was hovering near the bottom

of the English Premier League

when suddenly everything changed.

(crowd cheering)

- [Announcer] The English Premier League's Newcastle United

has been acquired by Saudi Arabia's

multi-billion dollar sovereign wealth fund.

- It was a huge deal for New Castle United,

but just the tip of the iceberg for Saudi Arabia.

Over the past several years,

the country has spent at least $10 billion on sports teams,

events and sponsorships in soccer, auto racing,

boxing, wrestling and golf.

Many are claiming that Saudi Arabia's spending spree

is simply sportswashing.

- I wonder if you could define for us

what is sportswashing.

- Sportswashing is the deployment of sports

for the purpose of cleansing

a country's image and reputation.

- Adolf Hitler did it in 1936 by hosting the Olympic Games

while persecuting Jews and minorities.

Argentina's military junta did it in 1978

by hosting the FIFA World Cup

while killing thousands of dissidents.

And Vladimir Putin did it in 2014 and 2018

as he repressed dissent at home and started wars abroad.

Today, the leaders of Saudi Arabia frequently jail

and execute anyone who speaks out against them,

harshly suppress women's and gay rights,

and in recent years, murdered a prominent journalist

and have orchestrated a bloody war in Yemen.

Plenty of reasons to want to sports wash, but they insist

that they're using sports for economic reasons.

- If the sportwashing can increase my GDP volume bu 1%,

then we will continue doing sportwashing.

- So which is it?

- If people are going to think

that this is just sportswashing,

well then you're missing the vast majority

of what Saudi Arabia's actually doing.

- This is about preserving their status.

Saudi Arabia knows that the clock is now ticking.

(upbeat contemporary music)

- The modern country of Saudi Arabia

has always been ruled by one family, the Al Saud.

In the 1930s, they conquered the region

with help from members of the Wahhabi movement,

an ultra-conservative sect of Islam.

The Al Saud then became absolute monarchs of Saudi Arabia

while enforcing the strict laws of Wahhabism

on their population.

They harshly enforced dress codes,

prayer attendance and gender segregation.

Women were subordinated to men and given very few rights.

- Sunni Islam really seeped into society

for a very long time and that was in many ways done

by the state.

- Karim Zidan is a journalist

covering the intersection of sports and geopolitics.

- You had these morality police on the streets

with these little sticks and then basically policing

how you could behave in Saudi Arabia.

- But while the Al Saud regime rose to power

thanks to religion,

they've been able to hold onto it thanks to.

- [Announcer] Oil, millions and millions of tons

have already been pumped out, but it's been estimated

that half the world's known reserves of crude oil still lie

beneath this barren featureless desert.

- Since the mid 20th century,

Saudi Arabia has been selling more oil

than any other country,

and in exchange for supplying many countries with oil,

the regime receives two things that help it stay in power.

Firstly, it earns hundreds of billions of dollars every year

which it uses to support its citizens.

The Saudi government pays for their healthcare, education,

and provides them jobs, and for years didn't tax them.

This was a way to keep them dependent on the regime.

Supplying oil has also given Saudi Arabia influence

with many countries, which it's used to secure their support

and in some cases, protection.

- [Announcer] It is the giant of the oil world,

and that means more money, more power, and more influence

on the affairs of our time.

- Wealth and influence abroad has given the regime

a secure grip on power,

so secure that it hasn't really developed other parts

of its economy.

- Let's put it in kind of blunt terms.

If if you don't have to work too hard, you just pull it out

of the ground and sell it and you get rich.

There's no real incentive to innovate,

to be enterprising, to diversify.

- Simon Chadwick is a professor of sport

and geopolitical economy

at the Skema Business School in Paris.

- This is a massive overdependence

upon one particular commodity.

- But for the Al Saud,

it works until the day people stop buying oil.

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- [Announcer] World demand prices are collapsing.

Senior oil executive has cast serious doubt

over Saudi Arabia's oil capacity.

- While models vary about how quickly demand for oil

will decline, most predict that demand will slow

in the late 2020s.

Since Saudi Arabia is so heavily dependent on oil,

even a modest decline in oil demand means.

- Their economy is in trouble.

They're in big trouble.

- Less demand for oil means less influence abroad,

less money to support its citizens,

and therefore a less secure grip on power.

- We're talking about 20 years maybe

for Saudi Arabia to turn round.

You are in essence, a super tanker of an economy.

- In other words, 20 years to fill these gaps.

In 2015, the king of Saudi Arabia named his son,

Mohammed bin Salman, the country's defacto leader,

and in many ways MBS, as he's known,

is another ruthless Saudi leader.

He launched a bloody war in Yemen,

imposed a blockade on Qatar

and kidnapped Lebanon's Prime Minister,

and in 2018, he directed his personal bodyguards to murder

Jamal Khashoggi, a journalist critical of the regime.

He's also cracking down hard on dissent within Saudi Arabia

and his regime's use of the death penalty has almost doubled

under his reign.

But unlike his predecessors, MBS has dramatically

scaled back the influence of Wahhabi Islam.

He gave Saudi women the right to drive, get jobs,

and travel alone.

He weakened the powers of the morality police,

and he's permitting music festivals, movie theaters

and other social events in Saudi Arabia for the first time.

But MBS isn't giving his citizens more rights just because

he feels it's the right thing to do.

- There is a hard bottom line in all of this

which is if you have 50%

of your population sat at home doing nothing,

then you are economically inefficient.

- MBS needs the whole Saudi population to help him

build a new economy.

(upbeat music)

At the heart of MBS's Vision 2030 Plan is a $700 billion

sovereign wealth fund called the PIF.

Its task is to invest money in new ways

for Saudi Arabia to generate wealth and influence.

So far, we know it's invested 933 million

in a housing complex in Riyadh,

eight and a half billion dollars in tourism development

by the Red Sea and $500 billion in a brand new

high-tech city called Neom.

These are ways the regime is trying to build new industries

that can provide its citizens income, housing, and jobs.

The PIF has also invested billions in companies

around the world, particularly in the U.S.

The Saudis are hoping that the returns

from these investments can be of course,

a new source of income, but more importantly,

a way to build influence in other countries.

- Some people might term it diplomacy.

Other people might term it lobbying,

but certainly this is nothing new.

- What is new is how well sports fit into this puzzle.

- I'm over the moon, mate's best day ever.

I'm over the moon, a long time coming.

(fans shouting)

- I've got hope back.

- After paying 391 million for majority stake in Newcastle,

The PIF spent millions more to sign new players.

Newcastle then finished fourth in 2022 and secured a spot

in the lucrative Champions League Tournament.

- [Announcer] A Champions League place assure that the team

that was staring down the barrel of relegation

not that long ago.

- Buying Newcastle cost The Saudis far less than many

of its other outside investments, and it's unlikely

to make them much profit, but that's not the point.

Buying Newcastle is an effective way for the Saudis

to build influence in the U.K.

by first appealing to its fans.

- Bold that they wanna see really in the sports world,

is their team succeed.

And suddenly out of the blue,

you've got this magnanimous leader who decides,

you know what?

I like your team.

I'm gonna invest in it.

I'm gonna make you guys one of the best teams in the world.

Of course it's gonna earn a sense of loyalty

from the average sports fan who's not in this

to think of the geopolitics and the bigger narrative.

- The Saudis know that fan loyalty can grow

into much wider influence because they've been watching

their neighbors do it for years.

The Emirate of Abu Dhabi purchased

the Manchester City Football Club in 2008,

and Qatar purchased Paris St. Germain in 2011.

Both spent millions to improve their clubs and are now

enjoying both economic and political influence.

- You take Manchester in the U.K., that has resulted

in significant infrastructural development

in downtown Manchester funded by Abu Dhabi.

Whether it's Uber, Facebook, or indeed, a soccer club

or a major championship, it does enable countries

to exert their influence and accumulate power.

- Even though Saudi Arabia realizes later than its neighbors

it has far more money than them

and can afford to buy influence in many places.

In 2021 and '22, it spent $2 billion to create

a whole new golf league and millions more to sign several

of the world's best golfers.

It's now planning to merge with a US-based PGA Tour.

In 2021, it's invested $500 million to sponsor McLaren,

a Formula One race car manufacturer based in the U.K.

And in 2023, Saudi Arabia directed a state-owned company

to buy a major sponsorship with AS Roma,

a football club in Italy.

Saudi Arabia is also rumored to be interested

in backing the ATP,

which operates professional tennis tournaments

all over the world.

By buying sports, Saudi Arabia is buying influence.

- We can't underestimate how influential sports can be.

The regional diplomacy is prestige.

The soft power, although with Saudi Arabia,

it really does feel aggressive and hard.

- But the Al Saud regime also believes sports

can be a new way to keep its population under control.

The vast majority of Saudi Arabia's population

is under the age of 35, and in 2022,

23% of them were unemployed.

Not so long ago, this combination spelled disaster

for autocratic regimes nearby.

(crowd chanting)

- The average age of an Arab spring protester

was 26 years old.

That Gen Z population is an internal security threat

for the ruling family.

They potentially could become restless.

They could start to make demands of the ruling family.

- You've gotta do something with them

and feeding them entertainment is at the end of the day,

what was once known as bread and circuses.

- Today, circuses means sports.

- Ladies and gentlemen, from King Abola Sports City

here in Jetta, Saudi Arabia.

- [Announcer] And the Saudi Grand Prix is good.

- [Announcer] It's magnitude to Saudi Arabia.

- Saudi Arabia spends 65 million a year to host

a Formula One race,

141 million so far to host heavyweight boxing matches,

and a hundred million a year to host WWE wrestling events.

It hosts the world's richest horse race

and won a bid to host the 2029 Winter Asian Games.

Then in 2023, the PIF took a majority ownership

of four Saudi football clubs and spent millions

to sign several of the world's best players.

(alien music)

Saudi Arabia submitted a bid to host the 2034 FIFA World Cup

and is reportedly interested in hosting an Olympic games.

Turning Saudi Arabia into a sports paradise,

MBS is hoping to keep the population on his side.

- A teenager in Saudi Arabia right now

absolutely loves this man.

Saudis love watching Italian and and Spanish football,

and now all these stars are coming and playing not only

in their league, but hosting their tournaments here.

Everything a Saudi kid would've ever grown up wanting

and knowing they couldn't get in Saudi Arabia,

now comes just like that.

That is powerful, Mohammed bin Salman knows that.

(upbeat music)

- So is this sportwashing?

I think for me, really, it depends where you're sat

in the world.

If you sat in, for example, Scandinavia,

and you look at this, yes, absolutely it's sportwashing.

I know that people in the Gulf region will look at people

like us and they will say, well, you know,

why do you hate us so much?

We're just investing in sport in the same way

as you've invested in sport.

So how come you see it as being something divisive

or something that's threatening?

- The term sportswashing falls short in this case

because it ignores a major reason why Saudi Arabia

is spending so much money on sports because it feels

its future depends on it.

Only by acknowledging that can the countries

and organizations that control sports

realize the leverage they now have to push for change.

- We are living in the middle of a massive negotiation.

I think we will begin to see possibly the U.S.

and Europe be more protectionist

and more guarded about sport.

But at the same time, I think if Saudi Arabia wants

to set ascend to a position of global legitimacy and power,

then it will have to compromise some of its values

and compromise some of its beliefs.

- So the world can either take advantage

of this opportunity or sit back and call it a distraction.

Hey everybody, thanks again for watching Search Party.

That was part one of three videos we're gonna do

on Saudi Arabia and sports.

So we have upcoming videos planned on specifically

the Saudi Football League as well as specifically LIV Golf.

If you have thoughts on those, comments, recommendations,

please let me know in the comments in this video.

And as usual, please share Search Party videos.

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all the information you need is in the description below.

Thanks again and I'll see you in a couple weeks.

(upbeat contemporary music)