With PGA-LIV merger, the sportswashing of Saudi Arabia's human rights record is in full swing

The impending merger between the PGA Tour and LIV Golf series has brought Saudi sports washing efforts to an American pro sport. The alliance between the century-old PGA Tour and the upstart series, backed by the Saudi Kingdom’s Public Investment Fund, is their boldest foothold into the American market yet. In recent years, Saudi’s PIF has poured billions into one-off spectacles for individual sports like tennis and golf. Tuesday’s merger makes them a partner of the PGA Tour and potentially a clarion call for America’s Big Four leagues.

In April, reports spread that prospective Washington Commanders owner Brian Davis was being backed by Saudi Arabian money, setting up an intriguing showdown the league hasn’t had to confront before. Davis denied the allegations, but the consternation over that dicey possibility could become a reality.

After successfully disrupting the PGA Tour’s monopoly on pro golf and attempting to edge their way into the WTA Tour, How long until the Saudis decide their next step is to get involved in America’s major professional sports leagues?

Buying an entire league is out of the question, but the exploding cost of purchasing and operating NFL franchises in the last two decades has created an issue for the NFL. In May 1999, Dan Snyder purchased the then-Washington Redskins and Jack Kent Cooke Stadium for $800 million. In May, Snyder agreed to sell one of the NFL’s cornerstone franchises for $6.05 billion. Even for New Gilded Age billionaires, the price of the NFL brick may have increased too quickly.

Complicating Harris’ bid were his 17 limited partners, eight shy of the league maximum. As a consequence of the ballooning valuations, the number of American billionaires who possess the wealth to bid on NFL franchises is rapidly dwindling. As the NFL begins to expand overseas, the reservoir of tycoons interested will only expand. And with that expansion will come foreign nationals with sketchy financials, and connections to sovereign wealth funds.

The difference between an independent investor from the Middle East and Saudi Arabia is that the PIF is ostensibly a tentacle of the Saudi kingdom, and Saudi ruler Mohammed bin Salman.

In the five years since intelligence officials concluded what was already suspected, that MBS coordinated the assassination of Washington Post journalist Jamal Khashoggi, Saudi Arabia has made of sportswashing away their human rights violations a priority.

Khashoggi’s murder drew further attention to the human rights violations he railed against during his life that are ingrained into Saudi law. In Saudi Arabia homosexuality is a capital offense and in March of 2022, 81 men were executed for deviancy, among other charges. Additionally, adult women must have the consent of male guardians for a whole host of rights, including marriage, and they are still prohibited from dressing in revealing clothing. The ban on women driving wasn’t lifted until 2019.

Saudi Arabia’s PIF being rated one of the least transparent SWFs in the world makes them an even murkier international financial force.

Currently, NFL financing rules require the majority owner to submit 30 percent of the total bid and allow for as many as 25 limited partners. There’s no telling who an ownership group including the PIF would actually be getting in bed with. According to Global SWF, the Public Investment Fund is one of the least transparent sovereign wealth funds in the world.

Imagine the NFL follows through on a proposed four-team expansion into Europe. A bid led by PIF Governor Yasir Al-Rumayyan, who also serves as chairman of the Premier League’s Newcastle United. is a real possibility. Or they could opt to dip their toes into the waters by backing a more reputable principal owner.

Oregon professor and sportswashing expert Yoav Dubinsky spoke to Deadspin recently on the topic of nation branding through sports and opined that the league most susceptible to Saudi intrusion is American soccer.

“The U.S. sports market might not be ready yet for having a Saudi-owned franchise in the NFL, NBA, NHL, or MLB,” Dubinsky told Deadspin. “The MLS might be a different story as the New York City FC is [already] part of the City Football Group in which the Abu Dhabi United Group is the majority holder. So, it is not impossible to imagine that the door might be also open to the Saudis, if the offer will be attractive enough to secure the future of the league, grow the game, and can be marketed as a positive investment in a needy community.”

Unlike America’s Big Four, MLS is competing against more established domestic leagues within their own professional sport. MLS has a soft salary cap, which allows teams to spend beyond an individual salary maximum on three “designated players,” which could make Saudi money even more of an advantage than it would in the NFL or NBA while Saudi interest in baseball would likely be minimal because of its lack of popularity abroad.

Look no further than the money the PIF is throwing at European soccer stars. This summer, Messi is deliberating between finishing his career in the Saudi Pro League on a $400 million contract or with Inter Miami, which is owned by billionaire Jose Mas. However, with a relatively measly net worth of $1.2 billion, it’s safe to say Inter Miami would not be able to match Saudi dollars. French striker Karim Benzema is leaving Real Madrid for a three-year, $643 million deal to play with Al-Ittihad in the Saudi Pro League.

The stigma attached to being associated with a Saudi league could give Messi pause as well. In 2022, Cristiano Ronaldo signed a $200 million a year contract to suit up for powerhouse Al-Nassr with the potential to loan him out to Newcastle. Hypothetically, a Saudi-backed ownership group could hedge their bets by buying a club and bringing international soccer talismans to America.

Because of the MLS’ single-entity structure, even opposing teams could see the benefits of Saudi investments in their league.

“For the Saudis to own an American sports team, they will a) need to find an underserved market that might embrace their franchise and b) ensure the financial sustainability of the leagues and other owners,” Dubinsky told Deadspin.

“I don’t think it will happen soon, but through the lenses of targeting communities that are not served regularly by professional sports teams and leagues, and if return-on-investment is not measured through financial gain, there might be potential entry points for the Saudi into the US market, including through ownership,” added Dubinksy.

Oakland, which recently lost its NFL, NBA, and MLB franchises would be an ideal location to target. As the debate surges around public financing of stadiums for the future Las Vegas Athletics and Buffalo Bills, a PIF-funded group would likely have the means to fund a stadium without taking a substantial hit.

According to Dubinsky, in theory, they could make this happen by “paying enough money to the league and other owners to secure the financial costs of flights, accommodations, and broadcasting, financially fund the facilities, create job opportunities for the local community, and soccer programs across the [community], this might serve a certain need.”

While the NBA’s business with China has been unfairly targeted, it’s also made The Association more amenable to oil-rich companies. In a move that went under the radar in November, the NBA’s Board of Governors recently approved a rule change that allows sovereign wealth to buy up to 20 percent stakes in teams, as well as invest in endowments and penchant funds. For now, they cannot become majority owners, but the slippery slope is being tread on. Team sales advisers told ESPn that as team values have skyrocketed, the pool of individual buyers for franchises has dramatically thinned. Ultimately, the Saudi enterprise has an endless stream of oil money to throw at these projects, and unless something dramatically changes, it’s only a matter of time and money.

Follow DJ Dunson on Twitter: @ cerebralsportex