Odd Lots Why Saudi Arabia Is Spending Millions on Soccer Stars
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Jun 23, 2023 In this discussion, Michael Caley, co-host of the Double Pivot Podcast, and Mike Goodman, senior editor at CBSSports.com, delve into Saudi Arabia's massive investments in soccer, showcasing stars like Cristiano Ronaldo. They explore how these financial commitments aim to elevate the country's global profile while dissecting the implications for international competition and Financial Fair Play regulations. The conversation contrasts past sports investments in China and the U.S., highlighting Saudi Arabia's unique government-driven approach and ambitions in reshaping the soccer landscape.
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Saudi Arabia's Soccer Investment Strategy
- Saudi Arabia's interest in soccer predates Ronaldo, starting with Newcastle United's purchase.
- Their involvement aligns with broader sports investments, like LIV Golf, showcasing a concerted effort.
European Soccer's Cutthroat Environment
- European soccer differs from American leagues due to promotion, relegation, and multinational competition.
- This cutthroat environment makes profitability difficult, necessitating external capital and creating opportunities for nation-states.
Financial Fair Play (FFP) Rules
- Financial Fair Play (FFP) rules aim to curb excessive spending by linking it to revenue.
- These rules face criticism for potentially protecting established clubs and legal challenges due to anti-competitive concerns.
