How the Saudi Public Investment Fund Changed Soccer Forever

posted on: Aug 13, 2025

By: Jake Harris / Arab America Contributing Writer

The Public Investment Fund is Saudi Arabia’s Sovereign Wealth Fund. A sovereign wealth fund, put simply, is a state owned fund that manages and invests a country’s excess revenues. Saudi Arabia have gained vast wealth from the country’s oil fields. The new vision for the PIF going into the middle of the century is to be aligned with Vision 2030. This is a government wide initiative to diversify the economy away from being too heavily reliant on oil. As we know, petroleum, despite being vast, is a finite resource. 

Saudi Investment in Wider Economy

The Public Investment Fund has significant stakes in some of the biggest companies on earth. The fund has significantly diversified their portfolio across multiple economic sectors. They own significant stakes in Uber, Electronic Arts, and Disney. According to Fintel, an investment research platform, approximately a fifth of the PIF’s investment portfolio is in Uber. This is equal to 72.84 million shares in the company. 

2021 Saudi Takeover of Newcastle United FC

Sports and entertainment have become one of the most well known and most reported on PIF investments. On October 7th, 2021, Newcastle United FC, one of England’s most storied and well supported soccer clubs were taken over by a consortium of investors led by the PIF. Newcastle United had been a successful club throughout the 1990’s challenging the Manchester United dynasty year after year for league titles. 

The 2000’s and 2010’s spelled a dark period for the club under now former owner Mike Ashley. The club became consistently near the lower end of the Premier League standings on a year to year basis. They suffered multiple relegations to the lower division after finishing in the bottom 3 of the standings. Fans protested Ashley’s ownership of the club for years. Fans saw Ashley as a man who was largely indifferent about Newcastle’s success on the field and an owner who was cheap in terms of bringing in quality transfers. An owner who was happy to see Newcastle barely tread above water so that the Premier League TV deal revenue would come raking in. 

Dispute over TV Deal

Initial attempts for the Saudi takeover ended in failure. The Premier League initially blocked the takeover of the club in 2020. There was a dispute over the Saudi government having banned beIN Sports, a Qatari broadcaster which carried Premier League matches on their network. The World Trade Organization alleged that a Saudi TV network was involved in the piracy of Premier League matches, creating another hurdle to the takeover being completed. The Saudi government denied the allegation. The Premier League needed a guarantee that the Saudi government would not control the club. 

Human Rights Concerns

There were also concerns among human rights groups that the Saudi government would use the club as a measure of “sportswashing”. Amnesty International accused the government of using sports as a measure to make the state’s image look better. The killing of journalist Jamal Khashoggi was alleged to have been ordered by the Crown Prince according to the Central Intelligence Agency. Crown Prince Mohammad bin Salman in an interview with CBS’s Norah O’Donnell denied having ordered the killing calling it a “heinous crime” but admitted individuals within the Saudi government carried it out. The Crown Prince claimed responsibility as a leader for what happens in the government. When pressed further on this bin Salman mentioned that it is impossible to know what the nearly 3 million government employees do on a daily basis.

Newcastle become a Global Force Overnight

In 2021 discussions were reignited and the Premier League got the guarantee they were looking for. Saudi Arabia lifted the ban on beIN Sports simultaneously lifting another hurdle to the completion of the takeover. 

Despite the controversy involved in the takeover, Newcastle fans couldn’t help but be ecstatic that the club had gone from serial underachievers to the richest club in the world overnight. There were huge celebrations outside the historic St. James Park. “We got our club back”, is what many Newcastle fans proclaimed. 

Since the takeover Newcastle have become a top 6 team in the Premier League. They’ve qualified for the UEFA Champions League two times since the takeover after not being in the competition for decades. The Champions League is Europe’s premier club soccer competition. Only the elite clubs qualify. On March 16th 2025, Newcastle won their first major trophy since 1955 winning the Carabao Cup at Wembley Stadium. 

The Saudi Pro League Challenges European Dominance

Newcastle United is not the Public Investment Fund’s only project in Soccer. They own multiple clubs within Saudi Arabia’s domestic league, the Saudi Pro League. The Saudi Pro League has changed soccer forever. It started when Al-Nassr FC offered legendary player Cristiano Ronaldo a 2 year, 700 million dollar contract. This was one of the largest deals in the history of sports. For the first time in the modern game, European dominance in club soccer is being truly challenged financially.

While it has been tradition for a while for top players to transfer overseas when the prime of their career is over, we are seeing younger stars make the move from large European clubs to Saudi Arabia. Portuguese player Ruben Neves, who was one of the most highly sought after midfielders in the Premier League transferred to Al-Hilal. Al-Hilal are Saudi Arabia’s most decorated club. Al-Hilal also signed Brazilian superstar Neymar.

Saudi Arabia will host the 2034 FIFA World Cup as a culmination of the nation’s increasing influence in the sport. 

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