Latest news with #PIF
Tahawul Tech
2 days ago
- Business
- Tahawul Tech
xAI to lease data centre capacity from Saudi Arabia
xAI is in discussions with Humain to lease data centre capacity for its compute-intensive AI models. Bloomberg reported talks are in the early stages, but an arrangement could include several gigawatts of capacity for xAI. Humain is backed Saudi Arabia's Crown Prince Mohammed bin Salman and the Public Investment Fund (PIF). The news agency noted such an arrangement could be years in the making since Humain is yet to break ground on its infrastructure build. Financial Times recently reported xAI was considering a further funding round in which PIF could play a part. Source: Mobile World Live Image Credit: xAI
New York Times
2 days ago
- Business
- New York Times
Saudi Pro League courting overseas investment in bid to compete with the best
FIFA president Gianni Infantino declared Al Hilal's victory against Manchester City in the Club World Cup's last 16 to be the dawn of a new era. Simone Inzaghi's side may have been knocked out in the next round by Fluminense of Brazil but beating the club who had won six of the previous eight Premier League titles and the 2023 UEFA Champions League was still a significant moment in Saudi Arabia's bid to become a global footballing power. Advertisement That mission kicked up a notch two years ago when the Public Investment Fund (PIF), the Gulf state's sovereign wealth arm, purchased 75 per cent stakes in four of the country's biggest clubs — Al Hilal, Al Ittihad, Al Nassr and Al Ahli. There has also been privatisation of other clubs by state-backed companies — Al Qadsia were bought by oil giant Aramco, the Neom new-city project acquired Al Suqoor and renamed them after itself, the Diriyah Gate Development Authority took control of Al Diriyah and the Royal Commission for Al Ula invested in its namesake team. Until 2023, the entire league had been owned by the country's ministry of sport, with only a few clubs benefiting from wealthy benefactors on top of that. This new form of investment has clearly brought progress and Al Hilal's performance in the United States this summer, where they also drew with Real Madrid (1-1) and Austria's Red Bull Salzburg (0-0) and beat Pachuca of Mexico (2-0), legitimised the league in the eyes of some. But with four years until the next Club World Cup, how does the Saudi Pro League (SPL) ensure its teams continue to improve when they will not face European opposition (aside from the six-team, annual version of that tournament, now called the Intercontinental Cup) in competitive matches during that time? Further privatisation appears to be the answer — opening the league up to overseas investment to help it compete with the top divisions of the leading European nations. According to sources close to the discussions, who spoke anonymously to protect relationships, a deal is in the process of being confirmed for the first foreign company to own an SPL club. It would represent a major step change. The second wave of privatisation began last year, when six clubs were put out for tender. Al Okhdood, Al Orobah and Al Kholood from the SPL and Al Zulfi, Al Nahda and Al Ansar from the lower divisions were made available, in an attempt to improve the depth of the Saudi league football. Advertisement The new owners of all six are expected to be announced in the coming weeks, and the goal is to have the vast majority of the 18-team Pro League in private hands in the coming years. The SPL does not want a top flight of haves and have-nots, where only a handful of the teams can compete for honours. The four PIF-funded clubs have been boosted by an investment of over £1billion ($1.34bn at the current rate) in recruiting talent from Europe but the fund's modus operandi is simple in whatever it invests in: return on investment. The plan was to buy up this initial set of clubs as a form of seed funding, grow the league commercially and sell them for a profit. While there is no firm timeline, if they are sold, it will be viewed as job done. The SPL's priority now is to create a sustainable model. Unlike Gulf neighbours Qatar and the United Arab Emirates, which prioritised infrastructure, Saudi football had long chased sexy names over solid foundations. The league's players had an average age of just below 30, the average tenure of a manager was around six months and many clubs were laden with debt. Having previously relied on money from the ministry of sport, there was a realisation that the clubs had to learn to stand on their own two feet. In a move to empower the SPL, former Chelsea and Monaco technical director Michael Emenalo was appointed as its first director of football. Before his arrival, some Saudi clubs felt they were being taken advantage of by agents. Emenalo and his technical team now act as a league-wide checkpoint. Through the player acquisition centre of excellence (PACE), they provide scouting knowledge that ministry clubs can tap into, as well as a concierge service for the league's incoming signings to ensure they have everything they require, as many teams do not have a similar player liaison programme. Advertisement Those types of improvements were part of the motivation behind the league's initial raft of big-name signings in 2023. Yes, Cristiano Ronaldo joining Al Nassr in January 2023 and Real Madrid striker Karim Benzema arriving at Al Ittihad five months later raised the profile of the SPL, but the league also learnt from these elite players about the infrastructure its clubs would require to compete with the game's traditional powers. Another major step was announced this week, as the SPL officially took on financial oversight of its clubs. The ministry of sport transferred its power from the financial sustainability committee to a new body that sits within the league structure. The SPL says this decision-making group — consisting of representatives from the ministry, the Saudi Arabian Football Federation and the league, plus independent members — is designed to improve financial governance, streamline regulatory processes and strengthen institutional discipline. Clubs are being incentivised to build their internal structures. What is akin to a syllabus is applied and the more boxes you tick when it comes to commercial, infrastructure and community aspects of their organisation, the larger support budgets are unlocked. These indicators also contribute to the decision over which teams are privatised. Neom SC, from the northwestern city of Tabuk, were renamed after a new gigacity being built nearby on the Red Sea coast. They won promotion to the SPL last season and have former Premier League players Said Benrahma and Alexandre Lacazette on their books. وفـصـل جـديـد يبدأه مع نيوم 📖#نادي_نيوم_الرياضي A history written in Europe 🏆 And a new chapter begins with NEOM S.C. 📖#NEOMSportsClub — نادي نيوم الرياضي (@NEOMSportsClub) July 1, 2025 The clubs who won Group A and Group B in the Saudi Second Division League (the third tier), Al Ula and Al Diriyah, are also on the up. Al Ula came under the control of the Royal Commission for Al Ula, a body tasked with transforming a northern city with a rich archeological history into one open to visitors as part of Vision 2030 (a government programme, launched in 2016, mapping out ambitious plans for how Saudi Arabia could develop away from its traditional oil and gas revenues). Advertisement Al Diriyah also had 75 per cent of their stake transferred to a firm owned by PIF as part of an aim to develop Diriyah, on the outskirts of capital city Riyadh, into a cultural, tourist, entertainment and sports destination. Crystal Palace sporting director Dougie Freedman was hired this year to scale up the squad. Both are now one promotion away from the SPL. Despite the gradual privatisation of the league, there has not been a Saudi-owned multi-club network established to leverage a pool of players across continents. 'The reason it hasn't transpired is, fundamentally, the Saudis don't want to spend money overseas,' Simon Chadwick, professor of Afro-Eurasian sport at France's Emlyon Business School, tells The Athletic. 'They want to spend money at home and create and develop sports assets that attract inward investment. Keep in mind, the Premier League generates around £8billion for the British economy and sustains around 103,000 jobs. This is what Saudi Arabia is looking towards — investment, sponsors, broadcasters, tourists. 'This has an economic impact on the country and is part of the economic diversification. Buying another club in Europe (to go with Newcastle United of the Premier League, which PIF owns 85 per cent of following a 2021 takeover) would be a leakage. Crucially, the Saudis have a very sharp sense of financial discipline and strategy; a strong sense of value for money and investing in a way that delivers returns for Saudi Arabia rather than someone else.' There is a tension, however, in raising the level of the domestic league while not completely diluting the presence of homegrown players. In December 2023, the number of foreign players allowed to be registered as part of a team's 25-man squad increased from eight to 10. Two of those must have been under 20 at the time of signing, with eight of the 10 allowed in any matchday squad. Before 2017, the limit was four players. It has steadily risen and is expected to be relaxed further, with every SPL club's quota now full. Advertisement Al Hilal's involvement in the Club World Cup highlighted how this could be a sticking point in the years to come as, free from quotas, several Saudi players lost their status as regulars in favour of foreigners. Senegalese defender Kalidou Koulibaly, who joined the Riyadh club from Chelsea two years ago, believes Saudi clubs could be among the favourites to win the next Club World Cup, scheduled for 2029. The country could theoretically have up to four teams in that edition if they can build on Al Ahli's Asian Champions League final triumph in May and establish dominance in the regional tournament. 'We showed that the teams from Saudi are very strong, very powerful, and we have a lot of good players,' Koulibaly said after their quarter-final defeat against Fluminense. 'We want to improve the league. We have improved a lot in two years. I was there at the beginning, and I see today it is very tough. We saw it last year, and next year it will be tougher, as more players are coming.' There are clearly going to be limits to the SPL's upward trajectory if their top teams only face their European counterparts every four years. Several leaders within Saudi football had talked up the possibility of its clubs playing in the UEFA Champions League but that looks unlikely given the country's aim to help grow Asian football. There had also been suggestions of a regional 'super league' involving Saudi Arabia, Qatar and the UAE, to help improve the depth of competition, but it looks unlikely with the SPL growing at such a rate and possessing increasingly vast fanbases. Saudi Arabia wants to become a force that dilutes Europe's stranglehold on the most global sport in the world. 'They are increasingly influential. There is DAZN as the Club World Cup's broadcaster and PIF as a Club World Cup sponsor, the 2034 World Cup (Saudi Arabia will host that edition of the men's version), Riyadh Air sponsoring Atletico Madrid,' says Chadwick. 'We are beginning to see Saudi ambitions tightening their influence over world and continental football through broadcasting, hosting rights and sponsorship. I'd speculate that we could see a senior Saudi official sitting at the highest level and we could well see a FIFA president from Saudi Arabia before 2050. Advertisement 'Look at the FIA (world motorsport's FIFA equivalent). Before 2022, it had never had a non-European president, and now it has an Emirati. Clearly, the culture and governance of the organisation are changing. I'm not suggesting the same will happen in football, but there are parallels. If we see a Saudi FIFA president, then the nature and governance of the game could change.' So, what are Saudi Arabia's overarching goals behind this investment in football? Is the SPL, its Club World Cup investment, the takeover at Newcastle and the establishment of the LIV golf tour, to name a few, purely sportswashing moves intended to soften the nation's image, given homosexuality is illegal there, female guardianship still exists, freedom of speech is heavily censored and capital punishment is still very much in fashion? Saudi Arabia also has a significant obesity problem and part of the thought process behind Vision 2030 is not just investing in mass participation sports but bringing big events to their backyard in the hope that more Saudi citizens will be inspired to get involved. The state has spoken about sport contributing three per cent of GDP (gross domestic product) annually as it looks to diversify its economy. There is also the social-cultural role it can play in engaging different audiences and driving greater equality between males and females. 'There is also an internal security issue,' Chadwick says. 'Mohammed bin Salman (the Saudi crown prince who is chairman of PIF) has spoken about how radicalisation and extremism cost the country two decades of development. There is a social, economic and moral cost to that, so he wants sport to address some of those issues and the questioning of the state. 'Saudi Arabia wants the world to see it as essentially just being like us, because then they have a legitimacy and a trustworthiness more than in the past. What (Abu Dhabi-owned) Manchester City and (Qatari-owned) Paris Saint-Germain serve to illustrate is the way football success can change the narrative around a country — we tend to hear far less about the UAE being sportswashers or guilty of human-rights infringements. 'The world tends to view it through the lens of sport. Similarly, we hear far less about Qatar, which, by proxy, is associated with PSG and style, culture. 'The notion of image transfer is real.' (Top photo of Koulibaly celebrating his goal in Al Hilal's Club World Cup win against Manchester City: Patricia De Melo Moreira/AFP via Getty Images)
Yahoo
3 days ago
- Business
- Yahoo
Who else could be interested in Isak amid Liverpool links?
Newcastle have maintained throughout the summer that their top players - and Alexander Isak is certainly one of those - are not for sale. Indeed, like Liverpool, Newcastle - who are owned by Saudi Arabia's Public Investment Fund (PIF) - are in a comfortable PSR position. Isak has three years left on his contract, so the Swede would most likely have to actively push for a move. Apart from Liverpool, few other clubs in the market for a striker could afford Isak's reported £130m price tag. "As the most profitable club in Premier League history, Arsenal could easily spend over £200m in the window and have no PSR concerns," said football finance expert Kieran Maguire. Despite Isak having been linked with a move to Arsenal, the Gunners are instead expected to reach a full agreement with Sporting for the 73.5m euros (£63.5m) signing of striker Viktor Gyokeres this summer. Manchester City are unlikely to be in the market for a striker, with Erling Haaland and Omar Marmoush under lengthy contracts. It seems doubtful that Manchester United would be able to afford Isak's fee without significant player sales, having missed out on Champions League football next season. Chelsea have bought strikers Liam Delap and Joao Pedro this window. "In theory, Tottenham could also afford Isak," said Maguire. "But whether the player would want to move from a team who finished fifth to one who finished 17th is a whole other story." Read all the financial details surrounding Liverpool's Isak interest here
BBC News
3 days ago
- Business
- BBC News
Who else could be interested in Isak amid Liverpool links?
Newcastle have maintained throughout the summer that their top players - and Alexander Isak is certainly one of those - are not for like Liverpool, Newcastle - who are owned by Saudi Arabia's Public Investment Fund (PIF) - are in a comfortable PSR has three years left on his contract, so the Swede would most likely have to actively push for a from Liverpool, few other clubs in the market for a striker could afford Isak's reported £130m price tag."As the most profitable club in Premier League history, Arsenal could easily spend over £200m in the window and have no PSR concerns," said football finance expert Kieran Isak having been linked with a move to Arsenal, the Gunners are instead expected to reach a full agreement with Sporting for the 73.5m euros (£63.5m) signing of striker Viktor Gyokeres this City are unlikely to be in the market for a striker, with Erling Haaland and Omar Marmoush under lengthy seems doubtful that Manchester United would be able to afford Isak's fee without significant player sales, having missed out on Champions League football next have bought strikers Liam Delap and Joao Pedro this window."In theory, Tottenham could also afford Isak," said Maguire. "But whether the player would want to move from a team who finished fifth to one who finished 17th is a whole other story."Read all the financial details surrounding Liverpool's Isak interest here
Yahoo
3 days ago
- Business
- Yahoo
Rolapp thinking 'like a fan,' LIV applies for OWGR
Brian Rolapp explains to CNBC his thought process regarding a deal with the PIF and how the PGA Tour will honor tradition without being bound to it. Then, hear the latest on LIV Golf's latest application for OWGR points.
