Saudi Arabia looks set to continue its strategic push into global sports media with reports suggesting that the Kingdom’s Public Investment Fund (PIF) is nearing a $1 billion minority stake investment in sports streaming giant DAZN. This move would position Saudi Arabia as a major player in the rapidly evolving sports media landscape, with implications for rights inflation and the Middle Eastern market’s competitive dynamics.
The potential investment would grant Saudi Arabia significant influence over DAZN’s global expansion plans and could accelerate the streamer’s push to achieve profitability by boosting its advertising and subscription revenues. According to Dan Harraghy, Sports Research Manager at Ampere Analysis, "Financial backing from the PIF has the potential to help DAZN invest more heavily in acquiring rights and further establish its global footprint, while allowing Saudi Arabia to assert its position in global sport."
DAZN has been actively expanding its presence in international markets, with the recent $3.4 billion acquisition of Australia’s Foxtel Group signaling its ambitions to secure valuable sports rights. The deal includes Foxtel’s $800 million annual sports rights portfolio, a key asset that provides DAZN with a strong foothold in the competitive Australian market. The acquisition is expected to bolster DAZN’s advertising capabilities, leveraging Foxtel’s established media sales operation and programmatic expertise to drive revenue growth beyond its traditional subscription model.
The Saudi investment, if finalized, could also lead to a significant increase in sports rights valuations, as PIF’s deep financial resources could enable DAZN to outbid competitors for premium properties. "Given the PIF so far seems less concerned about making a return on investment through its sports strategy, it is possible that, via DAZN, it will be happy to acquire media rights at the higher end of the value range, meaning we will likely see some rights inflation in the coming years," Harraghy added.
Saudi Arabia's ambitions in the sports sector have been evident in recent years, with PIF making substantial investments across football, esports, and motorsport. The fund’s strategy aligns with the Kingdom’s Vision 2030 plan, which aims to diversify the economy and position Saudi Arabia as a hub for global entertainment and sports events.
DAZN’s strategy under Saudi influence could reshape the Middle Eastern sports broadcasting landscape, challenging traditional broadcasters and rival streaming platforms. With PIF’s financial backing, DAZN may aggressively pursue key rights in the region, offering sports fans in the Middle East unprecedented access to premium content.
In addition to bolstering DAZN’s sports rights portfolio, the investment could facilitate the development of localized content and production capabilities in the Middle East, further embedding the platform within the region’s media ecosystem. "This partnership could redefine the way sports content is consumed in the region, with a focus on high-quality, digitally-driven experiences tailored for the Middle Eastern audience," said a senior industry executive.