Saudi Arabian club Al-Hilal made headlines with a reported $1.1 billion bid to secure the services of French football sensation Kylian Mbappe.
The eye-popping offer included a jaw-dropping $332 million transfer fee to Paris Saint-Germain (PSG) and an astronomical $775 million annual salary for the World Cup champion – all for just a single year of play.
Critics swiftly condemned this move as "sportswashing," a term used to describe the practice of using sports investments to divert attention from controversial issues.
Mbappe, despite being tempted by the offer, ultimately turned it down in July.
However, just a month later, Neymar Jr., the Brazilian football superstar, made a surprising switch to Al-Hilal from PSG in a transfer deal worth approximately $98.5 million (90 million euros), including various add-ons, as reported by multiple sources.
This extraordinary transfer window saw Saudi Pro League (SPL) clubs collectively spend nearly $1 billion, acquiring a staggering 94 international players from Europe's top leagues, including France's Ligue 1, Spain's La Liga, Italy's Serie A, Germany's Bundesliga, and the English Premier League, according to Deloitte.
Despite Saudi Arabia's questionable human rights record, the nation's lavish investment in its domestic football league underscores its determination to transform it into a globally renowned competition.
Several of these clubs are now under the control of Saudi Arabia's sovereign Public Investment Fund (PIF), and they have successfully attracted some of the biggest names in the sport.
The SPL's primary aim in luring these global football icons is to enhance competitiveness both on and off the field while simultaneously nurturing young Saudi talent.
During this summer's transfer window, the government-controlled PIF substantially increased the cumulative value of these four clubs, making them the most valuable in the country, according to estimates from the sports website Transfermarkt.
The SPL's ambition has enticed numerous other high-profile players, with the 2022 Ballon d'Or winner, Karim Benzema, signing with Al-Ittihad upon the expiration of his contract with Real Madrid.
As the European transfer window concluded, the four PIF-owned teams spent nearly $900 million on acquiring elite international players, ranking them among the top 20 clubs globally in terms of transfer expenditures, alongside football powerhouses from England, France, Germany, Spain, and Italy. Remarkably, Al Hilal alone outspent not only PSG but also Arsenal, emerging as the second-largest spender in the market this year.
These marquee signings join the ranks of five-time Ballon d'Or winner Cristiano Ronaldo, who has inked a two-year contract with Al-Nassr, reportedly earning an astonishing estimated annual salary of $200 million, as per Saudi state-owned media, making him the highest-paid football player globally.
Today, Saudi Arabia boasts 21 of the world's most expensive football players by transfer fees, all of whom are international stars playing for PIF-owned clubs.
Despite the substantial financial outlay, the SPL remains tight-lipped about the exact details of its investments, with Carlo Nohra, the Chief Operating Officer of the SPL, emphasizing that disclosing player and coach salaries does not align with the league's competitive strategy.
The PIF, which manages assets totaling $777 billion according to its most recent filings, is aiming to surpass the $1 trillion mark in the coming years. In 2021, it acquired English football club Newcastle United before shifting its focus to domestic investments, making the club one of the top spenders in player acquisitions.
Even Saudi clubs not under PIF ownership are splurging on high-profile players.
For instance, former Liverpool captain Jordan Henderson, 33, was reportedly offered a staggering weekly salary of $870,000 – approximately $15 million in total – for his transfer from Liverpool to Saudi team Al-Ettifaq.
Simon Chadwick, a professor specializing in sport and geopolitical economy at SKEMA Business School, explained that Saudi Arabia's approach is a clear message: "We've got so much money that we can afford to pay top players exorbitant salaries while also securing other star signings like Cristiano Ronaldo."
He asserted that the sky is the limit when it comes to costs for Saudi Arabia's ambitions to become a sporting superpower.
Saudi Arabia is following in the footsteps of other nations, such as China and Qatar, which have invested substantial sums in their quest to establish themselves as football giants.
However, whether Saudi Arabia's colossal investment will yield a lasting impact or merely serve as an expensive rebranding effort remains to be seen.
Saudi football has already had moments of glory, with the national team's multiple World Cup appearances and its clubs securing various Asian titles.
Saudi Arabia's stunning victory over Argentina during the men's World Cup last year was celebrated as one of the greatest upsets in tournament history, leading King Salman to declare a national public holiday in honor of the achievement.
Club matches in Saudi Arabia can draw massive crowds, rivaling the scale of renowned European fixtures like Chelsea vs. Arsenal or Manchester United vs. Manchester City.
The acquisition of star players, even if they are past their prime, provides an immediate boost to Saudi teams, according to Kieran Maguire, co-host of "The Price of Football" podcast.
Saudi Arabia's sporting ambitions extend beyond the SPL and Newcastle United.
The country is set to host the 2023 FIFA Club World Cup and has submitted a bid to host the 2027 AFC Asian Cup.
Reports also suggest that Saudi Arabia is considering a joint bid with Greece and Egypt for the 2030 FIFA Men's World Cup, although there are deliberations about withdrawing this candidacy.
Additionally, the Royal Spanish Football Federation (RFEF) has agreed to a contract that will see the Spanish Super Cup played in Saudi Arabia until 2029, a deal projected to generate between $38 million-48 million annually for the Spanish governing body.
Saudi Arabia's ambitious football endeavors align with its youthful population, where over 80% of young Saudis engage with or follow football, the nation's beloved sport.
The government's goal is to provide its young citizens with a thriving football industry, thus mitigating the risk of radicalization or anti-government sentiment, similar to the Arab Spring uprisings.
This approach helps secure both employment and the stability of the royal family.
Nevertheless, Amnesty International reports a deterioration in human rights in Saudi Arabia, including increased restrictions on freedom of expression and an escalated use of counterterrorism and cybercrime laws to silence dissent.
The organization also noted a surge in criminal prosecutions in 2022 and 2023, with the highest number of annual executions in the country in three decades in 2022, with 196 people executed.
While Saudi Arabia seeks to diversify its economy and reduce its dependence on oil revenues, its reputation remains crucial in attracting foreign investment.
James Dorsey, author of "The Turbulent World of Middle East Soccer," underscored the need for foreign investment to realize the country's Vision 2030 projects, including the ambitious $500 billion Neom city and other futuristic urban plans.
As Saudi Arabia continues to flex its financial muscles in sports, questions about transparency and governance persist.
The lack of financial rules governing Saudi clubs raises concerns about the potential dilution of UEFA's Financial Fair Play (FFP) regulations, as well as those of the Premier League and FIFA.
Transparency remains a key issue, with many calling for an independent organization to monitor and report on financial activities across leagues worldwide.