Saudi Arabia which has made substantial investments in professional sports clubs in various sports has now indicated interest in purchasing a multibillion-dollar share in the Indian Premier League, which is the richest tournament in international cricket, reported Bloomberg on Friday, November 3.
According to persons acquainted with the situation, Crown Prince Mohammed bin Salman’s advisors have discussed transferring the Indian Premier League into a holding company with a potential worth of up to $30 billion, in which Saudi Arabia would thereafter acquire a sizeable part. The individuals who wished to remain anonymous since the information is confidential claimed that the discussions took place during the de facto ruler of the kingdom’s September visit to India.
They added that in line with plans discussed at the time, the monarchy offered to invest up to $5 billion in the league and assist in spearheading its expansion into other nations much like the European Champions League or the English Premier League.
They disclosed that the Indian government and the Board of Control for Cricket in India (BCCI), the nation’s influential but discreet cricket body are expected to arrive at a decision on the arrangement following the 2024 Lok Sabha elections despite the Saudi government’s eagerness to move forward with a deal. Jay Shah, the son of Amit Shah, India’s Home Minister and a close ally of Prime Minister Narendra Modi, is in charge of the BCCI.
If a deal with the BCCI is eventually developed, it might be facilitated by Saudi Arabia’s formidable sovereign wealth fund which has supported many of the country’s other sports initiatives. However, no such decision is in place as of yet.
Since the league’s launch in 2008, the IPL has combined Bollywood glamour, American-style marketing and the enthusiasm of India’s massive populace. The primary objective of the competition was to replace the traditional cricket structure with three or four-hour broadcast-friendly games that promote huge, risky swings and frequent sixes.
Numerous sponsors have expressed interest in the league such as Aramco and the Saudi tourism board. Furthermore, bidders last year spent $6.2 billion for the right to broadcast IPL games through 2027, notwithstanding the fact that the season only lasts eight weeks every spring. This equates to $15.1 million for each game which is somewhat less than the $17 million that US networks pay for each National Football League game and more than the Premier League.
Media rights agreements would be revised if Saudi Arabia chooses to invest in the tournament or makes any format modifications to it, as per sources with knowledge of the situation.
Saudi Arabia has spent billions of dollars on sports over the last few years and the head of the kingdom’s cricket organisation has stated that he hopes to make Saudi Arabia a popular destination for cricket players worldwide.
Ben Stokes, the captain of England cricket and one of the best players in the world, remarked, “You can’t compete with money, especially the money that Saudi Arabia is throwing around to certain people,” in an interview this year.
Notably, there are ongoing efforts to recreate the IPL formula abroad. The inaugural season of Major League Cricket, a US startup partially sponsored by Microsoft Corp. and Adobe Inc. CEOs Satya Nadella and Shantanu Narayen, respectively, came to an end in July. This league along with others in the UAE, South Africa and other countries hasn’t challenged the IPL’s hegemony in the commercial sphere.
Any investment in cricket by Saudi Arabia would follow large expenditures on other sports, mainly football and golf. The LIV Golf Tour which this year agreed to a shocking merger with the PGA Tour received support from the PIF.
Moreover, Saudi Arabia spearheaded the purchase of Newcastle United FC, an English Premier League football team and is currently preparing to host the FIFA World Cup in 2034. The kingdom has invested millions on players like Cristiano Ronaldo of Portugal, Karim Benzema of France, and Neymar of Brazil as part of its attempt to become the most popular sport in the world.
The government has come under fire for allegedly “sportswashing” its human rights record and image as a result of this spending but the crown prince of the kingdom has stressed that the accords are primarily meant to strengthen the nation’s economy.
