Saudi Arabia Eyes $5 Billion Stake in IPL, Aims for Parity with Football Leagues
- ByStartupStory | November 4, 2023
Saudi Arabia has expressed a keen interest in acquiring a multibillion-dollar stake in the Indian Premier League (IPL), one of international cricket’s most lucrative events, marking a significant move following a trend of investments that have disrupted professional sports, including football and golf.
Advisers to Crown Prince Mohammed bin Salman have reportedly initiated discussions with Indian government officials about the possibility of shifting the IPL into a holding company valued at potentially $30 billion. In this scenario, Saudi Arabia would take a substantial stake in the IPL. These discussions took place during the de facto ruler’s visit to India in September.
Under the proposed plans, Saudi Arabia aims to invest as much as $5 billion in the league and lead an expansion into other countries, similar to the English Premier League or the European Champions League.
However, the final decision on this matter is expected to be made after India’s federal elections next year. The Board of Control for Cricket in India (BCCI), the country’s influential but relatively opaque cricket regulator, is anticipated to have a say in the proposal’s fate. The BCCI is currently led by Jay Shah, the son of India’s Home Minister Amit Shah, a close ally of Prime Minister Narendra Modi.
If an agreement is reached, the powerful sovereign wealth fund of Saudi Arabia, which has been at the forefront of many of the kingdom’s previous sports investments, could be used as the vehicle to execute the deal.
The IPL, known for its blend of American-style marketing, Bollywood glamour, and the enthusiasm of India’s vast population, has successfully redefined cricket by introducing shorter, broadcast-friendly games that encourage big plays and frequent sixes (equivalent to a home run in cricket).
The league has attracted numerous sponsors, including Aramco and the Saudi tourism authority. Last year, broadcasters paid a staggering $6.2 billion for the rights to broadcast IPL games through 2027, amounting to $15.1 million per match.
Saudi Arabia’s interest in the IPL reflects its growing investments in sports, with the goal of transforming the nation into a global cricketing destination. The kingdom’s significant spending in sports, particularly golf and football, has garnered attention, with the recent purchase of English Premier League football club Newcastle United FC and the pending hosting of the 2034 FIFA World Cup.
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However, these investments have also raised concerns about “sportswashing” Saudi Arabia’s image and human rights record. The crown prince has emphasized that these deals primarily aim to boost the kingdom’s economy.
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