Athletes' pay is being supercharged by Saudi money, creating ripples in the sports world

 The influx of Middle Eastern riches into the sports industry is having a profound impact, elevating the status of star soccer players and golfers while simultaneously raising concerns about the erosion of competitive balance. This shift in the landscape has set off a wave of transformation, as well-heeled ownership groups from the Middle East disrupt traditional norms and reshape the sports world as we know it.

One prominent figure caught in the midst of this paradigm shift is Lionel Messi, the renowned soccer superstar. Messi's ties to Saudi Arabia have proven both lucrative and tumultuous. Recently, he faced consequences at his club, Paris Saint-Germain (PSG), for fulfilling obligations related to his multimillion-dollar deal as a tourism ambassador for the kingdom. Despite serving a two-week suspension, Messi's connection to the Saudis has opened doors to massive financial opportunities. Speculation is rife that he might depart France to join the Saudi club Al Hilal, with rumors swirling about a potentially colossal contract worth hundreds of millions of dollars annually. However, both Messi's representatives and the team have denied any concrete agreement being in place at this time.

Messi's situation is not unique among sports stars with Middle Eastern connections. The world's highest-paid athletes list includes seven golfers from the Saudi-backed LIV Golf tour, as well as Cristiano Ronaldo, who made a significant move from European soccer to Saudi Arabia's Al Nassr earlier this year. Boxer Anthony Joshua also participated in a highly anticipated fight in Saudi Arabia, while Kylian Mbappé and Neymar find themselves playing alongside Messi under Qatari ownership at PSG. Furthermore, Formula 1 drivers Lewis Hamilton and Max Verstappen are competing in multiple races across the Middle East. These high-profile collaborations illustrate the deep integration of Middle Eastern wealth and influence within the global sports arena.

Middle Eastern ownership groups have made significant inroads into European soccer since Sheikh Mansour bin Zayed Al Nahyan's United Arab Emirates-based private-equity firm acquired Manchester City in 2008. Notable acquisitions include Qatar Sports Investments' purchase of Paris Saint-Germain in 2011 and Saudi Arabia's Public Investment Fund acquiring Newcastle United in 2020. The landscape continues to evolve, with Sheikh Jassim Bin Hamad Al Thani of Qatar expressing interest in bidding for Manchester United, and the Saudis exploring potential stakes in other European soccer teams. This influx of Middle Eastern ownership has not been limited to European soccer; it has also permeated domestic leagues, as exemplified by Ronaldo's move to the Saudi Pro League.

While soccer has been a primary focus, Middle Eastern investments have extended to other sports as well. The launch of the LIV Golf tour has enticed star golfers like Phil Mickelson and Dustin Johnson, luring them away from the PGA Tour with enormous guaranteed payments, reportedly reaching up to $200 million. Saudi Arabia has also hosted high-profile boxing and mixed martial arts events, WWE shows, and joined the Formula 1 schedule alongside Bahrain, the United Arab Emirates, and Qatar. Moreover, the United Arab Emirates unveiled a well-funded cricket league, and Saudi Arabia has ambitious plans to become an esports hub by 2030, investing a staggering $38 billion towards this goal. The region's sports sponsorships have also skyrocketed, with the Saudi Public Investment Fund committing $2.3 billion to long-term soccer sponsorships in a span of just eight months.

This significant infusion of capital has not only reshaped the financial landscape of sports but has also influenced athlete compensation. Golfers participating in the LIV Golf tour have experienced immediate impact, with lucrative prize pools and generous payments regardless of performance. The PGA Tour has responded by bolstering its prize money and bonuses to retain top talent. In soccer, while Ronaldo's contract may be viewed as an exceptional case, it is indicative of the wider

trend. The Middle Eastern owners' extravagant spending on teams and players has inflated transfer fees and player salaries, effectively resetting the market. Clubs like Manchester City and Paris Saint-Germain, under Middle Eastern ownership, have assembled star-studded squads and disrupted the traditional order.

Despite the allure of increased financial rewards, concerns persist. The issue of competitive balance looms large, as Middle Eastern ownership groups seemingly possess limitless resources, leveraging the vast wealth of sovereign wealth funds to strengthen their teams. Financial Fair Play regulations exist to prevent club expenses from surpassing revenue, but skeptics argue that these rules merely reinforce the European hierarchy rather than level the playing field. Moreover, there are fears that clubs could attempt to bypass regulations through dubious sponsorships, artificially inflating their revenue. The involvement of sovereign wealth funds further raises questions, as potential conflicts of interest arise when a country owns both a team and associated entities such as airlines.

Critics also highlight concerns about the human rights records of Middle Eastern countries and whether their investments serve as a form of "sportswashing" — a means to improve public perception and divert attention from controversial practices. While this argument holds merit, some question why similar scrutiny was not applied to countries like China and Russia when they hosted recent Olympic Games. Others contend that in the realm of ultra-wealthy bidders, the prices of teams often transcend economic valuation, driven by strategic considerations and personal aspirations.

As the sports world grapples with the implications of Middle Eastern wealth, the interplay between financial influence, competitive balance, and ethical considerations will continue to shape the future of sports on a global scale. The infusion of capital from the Middle East has undeniably ushered in a new era, but striking a delicate balance between financial ambitions, fair competition, and the welfare of the sporting community remains an ongoing challenge.