Behind the Qatar World Cup’s Great Surprise, the “Oil Money” Strategy that is Sweeping the World’s Sports

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Politics

Last Updated on 12/18/2022 by てんしょく飯

 

 

Qatar is said to have poured as much as $200 billion or $300 billion into the World Cup soccer tournament.

 

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 Furthermore, in recent years, oil money from the Middle East has been extending its tentacles to the world sports scene one after another.

The money of this country, which possesses a staggering wealth of several million dollars per capita, is having a major impact on the world’s soccer world.

 

Let’s take a look at the clever strategies of oil money that dominate big content.

 

Qatar Dominates Soccer and Horse Racing

Paris Saint-Germain FC,” based in Paris, France, is actually owned by a Qatari sovereign wealth fund.

 

With huge sums of money, the club is aiming to win the European Champions League, the highest honor for a club team, by attracting superstars from all over the world, such as Mbappe of France, Messi of Argentina, and Neymar of Brazil.

 

Of course, Qatari sovereign wealth funds have also invested in the French sports scene outside of soccer.

 

For example, in 2008, Qatar sponsored the Prix de l’Arc de Triomphe, the world’s most prestigious horse race, which significantly raised the prize money. Since then, the Longchamp racecourse, where the race is held, has been all maroon, the same color as the Qatari flag.

 

Oil Money Swallows Up the Premier League

Several other countries besides Qatar are also investing oil money in the sports scene.

 

The royal family of Abu Dhabi in the United Arab Emirates, Qatar’s neighbor, is the owner of Manchester City in the Premier League and, like Qatar, has invested heavily in the city. This team is also aiming to win the Champions League, but has not achieved its long-cherished goal, with its best result ever being a runner-up finish in the 2020-2021 season.

 

Saudi Arabia, the largest oil-producing country in the Middle East, has also begun to invest heavily in the sports scene in recent years, and in soccer, a sovereign wealth fund purchased Newcastle, a mid-tier Premier League club.

 

Newcastle is still in the middle of the 2022-2023 season, but has jumped to third place and is in contention for the Champions League.

 

Furthermore, in October 2022, Saudi Arabia’s Minister of Sports drew attention when he said that he would support the acquisition of Manchester United and Liverpool, two prestigious Premier League clubs whose owners are reportedly willing to sell, if the Saudi private sector is willing to buy them.

 

Also, global superstar Cristiano Ronaldo has reportedly accepted a tremendous offer of 200 million euros (about 29 billion yen) per year to move to the Saudi league after the World Cup in Qatar.

 

The Saudi government is currently spending more on golf than on soccer.

 

Saudi Money Dominates “Golf”

LIV Golf, owned by a Saudi government fund, was launched this year, 2022, with Greg Norman, a famous golfer of yesteryear, as its representative.

 

The Professional Golf Association (PGA) of the United States, feeling threatened by this, announced that players who moved to LIV would be banned from participating in the PGA Tour, but this did not stop star players such as Phil Mickelson, Dustin Johnson, and Bryson DeChambeau from moving to LIV one after another.

 

The reason for this is the world’s largest prize money.

 

Dustin Johnson, the first-year champion, is said to have earned more than 20 billion yen in transfer fees and prize money alone, which is truly an order of magnitude higher than any other professional golf tour in the United States or Europe, which boast of their own traditions.

 

The LIV Tour is also attractive because even if a player is expelled from the tours led by the golf associations of each country, he or she can still participate in the four majors, which are run by different organizations, and thus has the option of gaining prestige in addition to wealth.

 

The LIV Tour has also attracted a number of Japanese tour pros, and the high prize money means that even if a player finishes in the bottom half of the leaderboard, he or she can still earn the equivalent of Japan’s annual top prize money in a single tournament.

 

Integration with the development of a huge resort

Of course, it is hard to imagine that the huge prize money invested in the tour will pay for itself in revenues from spectators and broadcasting rights alone, as it is not as well known as in Europe and the U.S. The Saudi government is committed to golf, and the Saudi government is also committed to the development of a resort.

 

The Saudi government’s commitment to golf is intended to turn around the country’s tourism strategy, which has lagged behind other Gulf countries.

 

I have visited Saudi Arabia only once, but it took a long time to obtain a visa and it was difficult to prepare for the trip.

 

It is no wonder that Saudi Arabia is far behind Dubai of the UAE and Doha of Qatar in terms of the number of tourists. It is no wonder that Saudi Arabia is far behind UAE’s Dubai and Qatar’s Doha in terms of tourists.

 

Saudi Arabia, with Mecca and Medina, the two holiest sites of Islam, has attracted many Muslims who make pilgrimages to the country.

 

However, in order to attract more tourists from all over the world regardless of faith, various resort development projects are underway, including the Red Sea Development Project, which will invest nearly 1 trillion yen to build a hotel with nearly 10,000 rooms.

 

The LIV Tour mentioned above and the development of golf courses designed by the star golfers involved will be the centerpiece of these resort developments.

 

A “Tourism Strategy” for the Middle East

Of course, the Saudi government has been criticized by Western governments and the media for various problems, including human rights abuses caused by the absolute monarchy.

 

However, Middle Eastern countries are well aware of such criticisms and are investing huge amounts of money in the sports scene, which is the most influential content in modern society.

 

The movement to take full advantage of the current high commodity prices, including crude oil, to enhance the image and revitalize the economies of each country is expected to expand further in the future.

 

In addition, the series of articles, “The Birth of a Fierce “Earning $4 Billion a Year” at Last…!  In our series of articles, “The Real Names of the ‘Unknown Richest People’ Who Are Earning Extraordinarily Well in a Downturn”, we report on the latest trends in wealth. In this article, we will report on the latest trends of the rich and powerful!

 

 

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