How Saudi Arabia is aiming to be home to the world’s biggest sporting events

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British biker Sam Sunderland and his team celebrate their victory after winning the Dakar Rally 2022, at the end of the last stage between Bisha and Jeddah on Jan. 14, 2022. (AFP)
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Newcastle United fans celebrate the club's recent take over by a Saudi-led consortium during an English Premier League football match on Oct. 17, 2021 in Newcastle-upon-Tyne, England. (AFP)
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Real Madrid players celebrate beating Atletico Madrid for the Spanish Super Cup title on Jan. 12, 2020, at the King Abdullah Sports City in Jeddah. (AFP)
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US biker Mason Klein competes during Stage 7 of the Dakar Rally 2022 between Riyadh city and Dawadmi town on Jan. 9, 2022. (AFP file)
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The peloton passes by ancient Nabataean carved tombs during the Saudi Tour northwestern city of AlUla on Feb. 1, 2022. (AFP)
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Updated 21 August 2022
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How Saudi Arabia is aiming to be home to the world’s biggest sporting events

  • Usyk and Joshua’s heavyweight bout in Jeddah is only the latest in a long and exciting list
  • Kingdom has set its sights on the AFC Women’s Asian Cup, Asian Games and Asian Winter Games 

JEDDAH: Saudi Arabia’s coastal city of Jeddah was buzzing with excitement yet again on Saturday ahead of one of the biggest boxing rematches in sporting history, between Ukrainian Oleksandr Usyk and British fighter Anthony Joshua. 

Such scenes of anticipation are increasingly familiar in Saudi Arabia, as more and more international sporting events are hosted by the Kingdom — a product of the country’s wide-ranging social and economic transformation plan, Vision 2030.




Football match between Saudi Arabia and Australia, part of the 2022 Qatar World Cup Asian Qualifiers, in Jeddah on March 29, 2022. (Photo by AFP)

Last September, Usyk shocked the boxing world when he outclassed Joshua in the first bout, claiming his fourth heavyweight title. Owing to the war in Ukraine, their planned rematch could not take place in the champion’s home country. 

Instead the bout, titled “Rage on the Red Sea,” came to Jeddah.




Oleksandr Usyk, left, and Anthony Joshua ahead of their rematch in Jeddah on Aug. 20, 2022. (AN photo by Huda Bashatah)

One of the goals of Vision 2030, launched in 2016, was to establish the Kingdom as a regional hub for world-class professional sporting events that would generate jobs for Saudi citizens and enhance overall quality of life. 

Today, sports are taking center stage in the Kingdom’s diversification drive to move the economy away from hydrocarbons and to embrace a whole host of flourishing cultural, entrepreneurial and high-tech industries.

In just a few short years, Saudi Arabia has moved to the forefront, hosting some of the biggest sporting events in the world, providing an additional boost for tourism, hospitality, leisure, and employment, while also strengthening national identity.




Saudi Crown Prince Mohammed bin Salman (C) attends the launch of the ABB FIA Formula E Championship in Diriyah, Riyadh, on Nov. 22, 2019 (Saudi Royal Palace photo/ File)

Tourism is one area Saudi Arabia is especially eager to promote with the launch of its Saudi e-visa in 2018. The Kingdom expects to have hosted 100 million tourists by 2030, drawn by a mixture of new luxury resorts and a packed entertainment calendar.

Hosting major sporting events has created new opportunities for partnerships, investments, and sponsorships at every stage in the value chain, while also demonstrating Saudi Arabia’s diversity, inclusivity, and economic potential to a broader international audience.




Toyota's Saudi driver Yazeed Al Rajhi and British co-driver Michael Orr compete during Stage 11 of the Dakar 2022 around Bisha on Jan. 13, 2022. (AFP)

From the silky smooth tarmac of the Formula E track to the epic routes of the Dakar desert race, and the Royal Greens Golf & Country Club in King Abdullah Economic City to the King Abdullah Sports City in Jeddah, the Kingdom’s sports entertainment infrastructure has improved leaps and bounds.

Saudi Arabia’s successful bid to host the 2034 Asian Games is further proof of the sector’s long-term strategic trajectory — one that is bound up in its overall national development.

In 2018, the Kingdom witnessed a flurry of major sporting events, tournaments, and championships. That year, Britain’s Callum Smith beat compatriot George Groves in Jeddah to win the WBA super-middleweight title and the World Boxing Super Series crown. 

The 2018 Ad Diriyah E-Prix was also one for the books, as the championship was staged in the historic town of Diriyah, the capital of the first Saudi state.

Since then, Saudi Arabia has hosted the Supercoppa Italiana, the expanded Supercopa de Espana, golf’s Saudi International and the $20 million Saudi Cup — the world’s richest horse race. 




Jockey Wigberto Ramos with Emblem Road celebrates after winning the 1800M race Group 1 of the $20 million Saudi Cup in Riyadh on Feb. 26, 2022. (AFP file)

It has also hosted the Saudi International Championship for Parachuting, the “Clash on the Dunes” between Joshua and Andy Ruiz Jr., the Diriyah Tennis Cup, and the Battle of the Champions BMX and skateboarding tournament, to name just a few. 

Although Saudi Arabia’s entertainment revolution suffered setbacks in 2020 at the height of the COVID-19 pandemic, with events suspended, venues closed, and international travel barred for several months, the entertainment calendar soon returned with a bang.

In 2021, the Kingdom inaugurated its crowning glory — the Saudi Arabian Grand Prix — firmly establishing itself as a leading venue for international sports events.




Drivers compete during the 2022 Saudi Arabia Formula One Grand Prix at the Jeddah Corniche Circuit on March 27, 2022. (AFP)

Built in just eight months, the high-speed circuit on Jeddah’s seafront became the fastest F1 track to have ever been constructed.

The Kingdom has now set its sights on hosting the AFC Women’s Asian Cup in 2026 and the Asian Winter Games in Saudi Arabia’s planned megacity of NEOM in 2029.




A view of NEOM’s Trojena, a mountain destination in the northwestern Saudi province of Tabuk, which is will soon offer year-round outdoor skiing and adventure sports. (Supplied)

A recent Ernst & Young report found that the value of the sporting events industry in Saudi Arabia is growing 8 percent annually, rising from $2.1 billion in 2018 to an estimated $3.3 billion by 2024. 

The contribution of sport to national GDP grew from $2.4 billion in 2016 to $6.9 billion in 2019 as the number of international events in Saudi Arabia doubled from nine in 2018 to 19 in 2019. 

Of course, the economic dividends are not the only signals of success. The Kingdom’s young athletes have clocked up significant victories, which the whole nation can rightly feel proud of.

Last year, Saudi Arabia’s Tarek Hamdi won silver in karate at the Tokyo 2020 Olympics. Then, earlier this year, Fayik Abdi became the first Saudi to participate in the Winter Olympics, held in Beijing.




Alpine skier Fayik Abdi became the first ever Saudi to participate at the Winter Olympics. (Saudi Olympic Committee)

Having performed well in its fifth FIFA World Cup appearance in Russia in 2018, the Saudi national team qualified for the this winter’s finals in March this year.

Another positive knock-on effect of the growth of sports entertainment has been a general uptake in health and fitness activities among the Saudi population. 

A new survey by Saudi Arabia’s General Authority for Statistics has revealed that 48.2 percent of people across the country now practice physical and sporting activities for at least 30 minutes a week. 




Women take part in a cross fit class at a gym in Jeddah. (AFP file photo)

This demonstrates a key milestone in creating a healthy, vibrant society in line with Vision 2030’s Quality of Life Objectives. 

Another pillar of the Vision 2030 reform agenda has been to transform the role of women. Saudi Arabia has developed several strategies to include women in sports, including the establishment of a 24-team Women’s Football League in 2020 and the launch of the first Women’s Regional Football League the following year. 




The Saudi women national football team has received a boost with the appointment of veteran German coach Monika Staab as trainer-coach. (Supplied)

Indeed, according to the Saudi Ministry of Sports, female participation in sports has increased by almost 150 percent since 2015. 

“By participating in athletic events, women achieve so much more,” Hala Al-Hamrani, founder of the first female boxing gym in Saudi Arabia, told Arab News. “Tonight’s boxing event is a big deal, but I’m going mainly to watch the first two female undercards in Saudi Arabia.”

On said undercard, a major moment for women’s boxing will see Somali-British prospect Ramla Ali become the first female boxer to feature in an official international event in Saudi Arabia, clashing with Crystal Garcia Nova over an eight-round super-bantamweight contest.




Government support for combat sports has encouraged many women in the Kingdom to train in martial arts. (Supplied/File)

“I think that is a huge step forward because it’s sending a message to the public that the government supports women competing in combat sports, which will in return allow families that were once reluctant to allow their girls to join in classes or different martial arts competitions to reconsider their position,” said Al-Hamrani. 

Such events “help dissipate the idea that women shouldn’t box,” she added. 

“The undercard and the government’s support is a big deal, showing that women’s involvement in the sport in any way is no longer taboo.” 

 

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Cristiano Ronaldo’s sister describes Saudi Arabia as ‘safest place on earth’

Updated 11 sec ago
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Cristiano Ronaldo’s sister describes Saudi Arabia as ‘safest place on earth’

  • Katia Aviero posts message on Instagram in which she says of the Kingdom: ‘If there is a safe place to walk alone, it is here’
  • Aviero, who joined her brother’s partner, Georgina Rodriguez, to watch him play in the King’s Cup semifinal on Wednesday adds: ‘Nobody disrespects you here and there are no thefts’

RIYADH: While Al-Nassr star Cristiano Ronaldo was busy scoring a brace on Wednesday in a 3-1 victory over Al-Khaleej that earned his team a place in the King’s Cup final, his sister was praising Saudi Arabia and describing it as the “safest place on earth.”
Asked whether it was safe to walk alone in the Kingdom, Katia Aviero posted a message on Instagram in Portuguese in which she said of the Kingdom: “If there is a safe place to walk alone, it is here.”
She said: “Saudi Arabia is one of the best in the world in terms of safety. You can leave your phone on the table and go and come back without anything happening.”
She added that “nobody disrespects you here and there are no thefts,” and she feels secure at all times.
A Saudi sports website quoted Aviero as saying: “You can also leave your keys and wallet in the car.”
She also posted a photo of herself with Ronaldo’s partner, Georgina Rodriguez, and another women watching the game on Wednesday from a VIP lounge at Al-Awwal Park stadium. She added a note, saying: “We came to give good luck for our king (Cristiano).”
Aviero, who has more than 1.4 million followers on Instagram, also added several posts to her Instagram Story on Wednesday featuring videos of Riyadh streets filmed from inside a car.
Ronaldo scored the first and third goals for Al-Nassr on Wednesday night, with Sadio Mane netting the second from the penalty spot.
The Portuguese star celebrated the semifinal victory with brief message on social media platform X in which he wrote: “The King’s Cup … let’s go.”
Al-Nassr will face fierce rivals Al-Hilal in the final on May 31.


Soccer jersey dispute between Algeria and Morocco clubs over Western Sahara goes to sports court

Updated 54 min 41 sec ago
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Soccer jersey dispute between Algeria and Morocco clubs over Western Sahara goes to sports court

  • The court said Thursday the two sides “are currently exchanging written submissions”
  • The dispute already affected the teams’ semifinal of the CAF Confederation Cup

GENEVA: A soccer politics dispute between Algeria and Morocco over a map of disputed Western Sahara territory on a team jersey will go to a full appeal hearing at the Court of Arbitration for Sport.
The court said Thursday the two sides “are currently exchanging written submissions” and set no timetable for appointing a panel of judges and setting a date for a hearing.
The Algerian soccer federation and the USM Alger club from Algiers are challenging a decision by the Confederation of African Football to let Moroccan club RS Berkane wear a team jersey that includes disputed territory on a map of Morocco.
The dispute already affected the teams’ semifinal of the CAF Confederation Cup, in which USM Alger are the defending champion. Neither semifinal game scheduled on April 21 and 28 was played and both were awarded by CAF as 3-0 wins to Berkane.
Berkane are scheduled to play the two-leg final on May 12 and 19 — against Zamalek of Egypt — and the court did not indicate Thursday if the Algerian appeal will be judged before those games.
Western Sahara is a former Spanish colony annexed by Morocco in 1975. The United Nations brokered a ceasefire between Morocco and the pro-independence Polisario Front, which is supported by Algeria, that held until four years ago.
Algeria cut diplomatic ties with Morocco in 2021.
The laws of soccer state that “equipment must not have any political, religious or personal slogans, statements or images.”
Berkane arrived for the April 21 game in Algiers and had their team uniforms seized at the airport by Algerian authorities.
CAF refused an Algerian request to prohibit the shirts and, after Berkane refused to wear replacement shirts provided by USM Alger, the game did not go ahead.
CAF ruled the Algerian club were in breach of competition rules and Berkane were awarded a 3-0 win by default.
An urgent appeal by the Algerians to suspend CAF’s ruling on the shirt was denied last week by the sports court in Lausanne, Switzerland.
On April 28, USM Alger went to Berkane’s stadium for the second leg but refused to play if the hosts wore the jerseys with the map. CAF awarded a second default win to Berkane.
The full appeal in the case has now been brought against CAF, the Moroccan soccer federation and Berkane. One of the African soccer body’s most influential officials, FIFA Council member Fouzi Lekjaa, is president of the Moroccan federation and a former president of the Berkane club.


Saudi Smash 2024 draw held in Jeddah

Updated 02 May 2024
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Saudi Smash 2024 draw held in Jeddah

  • Ceremony signals start of weeklong table tennis competition
  • ‘It is wonderful to be here in Saudi Arabia,’ Egyptian Omar Assar says

JEDDAH: The draw for the ITTF World Table Tennis Championships Saudi Smash 2024 took place on Thursday.
The draws for the men’s and women’s singles, each of which has 64 players, and the doubles categories, with 24 pairs in each, were held at the Infinity Arena, Sports Hall King Abdullah Sports City in Jeddah.
The tournament, which opens on Saturday and runs through May 11, is part of the WTT Grand Smash series.
Among the notable names in the draw were the men’s and women’s world No. 1s Wang Chuqin and Sun Yingsha of China, Brazil’s Bruna Takahashi and Egpyt’s Omar Assar.
Assar, who made history by becoming the first Egyptian player to reach the quarterfinals of a World Championship, said: “It is wonderful to be here in Saudi Arabia and looking forward to being part of this eagerly awaited tournament.”
Wang said: “It is really a tough competition but I am ready to compete until the end.”
The competition’s total prize pool of $2 million is the highest ever for an officially sanctioned event.
Other top players taking part include Felix Lebrun of France, Shin Yubin of South Korea, Hana Goda of Egypt and Dang Qiu of Germany.


Largest ever refugee team to compete at Paris Olympics-IOC

Updated 02 May 2024
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Largest ever refugee team to compete at Paris Olympics-IOC

  • The athletes, from countries including Syria, Sudan, Iran and Afghanistan, will compete across 12 sports in Paris
  • IOC President Thomas Bach said: “This will send a message of hope to the more than 100 million displaced people around the world“

LAUSANNE: The International Olympic Committee (IOC) on Thursday unveiled its largest refugee Olympic team to date for the Paris 2024 Games, with 36 athletes from 11 different countries.
The athletes, from countries including Syria, Sudan, Iran and Afghanistan, will compete across 12 sports in Paris, the third time such a team has formed for the Summer Olympics.
“With your participation in the Olympic Games, you will demonstrate the human potential of resilience and excellence,” IOC President Thomas Bach said during the team’s announcement.
“This will send a message of hope to the more than 100 million displaced people around the world.”
For the first time, the team will compete under its own emblem.
The IOC unveiled its first refugee team for the Rio 2016 Olympics with 10 athletes to raise awareness of the issue as hundreds of thousands of people were pouring into Europe from the Middle East and elsewhere escaping conflict and poverty.
The team that competed at the Tokyo 2020 Olympics, held in 2021 due to the COVID-19 pandemic, was already almost three times as big as the inaugural team at the Rio Games, with a total of 29 athletes competing in 12 sports.
The Paris Olympics refugee team announcement comes shortly after Anjelina Nadai Lohalith, who ran as a refugee athlete in the 1,500 meters at the 2016 and 2021 Olympics, was suspended after testing positive for a banned substance.


The continuous rise in value of the Indian Premier League

Updated 02 May 2024
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The continuous rise in value of the Indian Premier League

In the aftermath of the Punjab Kings’ record chase of 262 runs on April 26, team captain Sam Curran, remarked that the Indian Premier League “(is) becoming a bit like baseball, isn’t it?”

This was likely a moment that opponents of the IPL had predicted and feared — and, conversely, one that proponents of the IPL and T20 cricket in general relished.

T20 cricket is in line with the age of fast food. Instantly consumable, quickly forgotten and underpinned by mass advertising and high-profile personalities. Around the world, its sponsors include KFC for Australia’s Big Bash League, the very title encapsulating the format’s frenzy.

In England, the Hundred has a five-year deal with KP Snacks. Given governmental policy to reduce consumption of products that are high in fat, salt and sugar, the partnership has drawn criticism.

Meanwhile, in South Africa, SA20’s title sponsor is Betway, one of a growing number of betting companies associated with cricket. In the IPL, there is a myriad of sponsors. The title one, Tata, is paying $300 million between 2024 and 2028. Then there are three associate partners — My11Circle, Angel One and RUPay — plus an official broadcaster in Star Sports, official digital streaming partner JioCinema, official strategic timeout partner CEAT and an umpire partner in Paytm.

Each franchise team has a plethora of principal partners, associate partners, media partners and merchandise partners. These represent a broad range of different industry sectors which boost the brand value of the franchises. According to brand valuation consultancy Brand Finance, the value of the ten franchises at the end of the 2023 season ranged from $43.7 million to $87 million. The estimated brand value of the IPL was $10.7 billion.

Estimates of brand value are derived differently by different bodies. This is because brands are not tangible assets — they are subject to beliefs, perceived reputation, trust and experience. Their value lies in how consumers associate with the brand and how it influences their behavior. Attempts to quantify these factors require measurable elements such as trademarks, logos, taglines, visual assets, digital assets, customer retention and social media engagement levels.

Since it began 17 years ago, the IPL has generated all of these in abundance. Along with experience and engagement within the stadiums, an exponential growth in viewership reached close to 500 million unique viewers in 2023. The new media rights regime in 2024 has created further growth, with the Disney Star Network acquiring broadcast rights for all IPL matches in 2024. Live broadcast of the first 18 attracted over 400 million viewers, a 17 percent like-for-like increase over 2023. 

There is a big shift in live streaming, with Viacom’s JioCinema awarded digital streaming rights in the 2024-27 cycle. In 2023 it streamed the entire IPL season for free on its mobile app and website, a feature continued into 2024. The move took many by surprise but enabled it to set a record for the highest concurrent viewership for a live-streamed event — some 32 million viewers tuned in to watch the final. Now, digital streaming appears to be gaining momentum over traditional TV broadcasting with IPL viewers, depending on market segment. This can only increase as technology advances and accessibility improves.

As a result, brand value estimates after the 2024 edition are likely to be affected. Close inspection of existing estimates reveals the different methodologies in use. Cost-based valuations focus on how much it has taken to build the brand. Market-based valuations take account of how much sales of similar brands have raised. Income-based valuations focus on how much money the brand brings into the organization compared with non-branded similar products for services. Customer-based valuations analyze existing customers and predict future consumption patterns.

Another approach is the relief from royalty method, used by global investment bank Houlihan Lokey. This calculates value based on hypothetical royalty payments that would be saved by owning an asset rather than licensing it. In 2023, this produced a brand value estimate for the IPL of $3.2 billion — a difference of some $10.7 billion compared with other estimates. The methodology also produces different estimates of the franchise brand values. In this case, they are in a higher range of $83 million to $212 million, with a slightly different ranking.

Houlihan Lokey also undertook a valuation of the IPL’s value as a business, based on the standard discounted cash flow technique. This amounted to $15.4 billion in 2023, an increase of 80 percent over 2022. Most of this can be attributed to the renewal of the media rights deal covering 2023-2027, worth three times more than the 2017-2022 cycle. It is reasonable to assume that, given the year-on-year increases in viewership, the IPL will be able to command even more enhanced terms in the next cycle.

Intuitively, this makes the use of DCF techniques understandable. Under normal circumstances, the IPL can be reasonably sure of its future revenue streams. Once they are expressed in terms of present values, investors can assess what rate of return they are likely to achieve. Ultimately, returns on investment and profits are more important to stakeholders than differences in brand valuations, although the franchisees remain committed to brand enhancement through fan engagement, association with star players and top sponsors. 

Since 2008, the IPL has established itself as a global phenomenon and it has done so in a relatively short time. It attracts millions of fans and viewers, providing instant entertainment. All the signs are that it will continue to grow through increased sponsorship, viewer numbers and media rights income which, in turn, proliferates advertising revenue for the media. This is big business and looks unstoppable, but it may morph into a caricature of the game from which it took its roots.