FIFA seals closer ties to Saudi Arabia with World Cup sponsor deal for oil firm Aramco
FIFA deepened its ties to Saudi Arabia by confirming a sponsorship on Thursday with the kingdom's state oil firm Aramco which made a profit of $121 billion last year.
The deal was expected and became inevitable once Saudi Arabia was all but sealed last October as the 2034 host of the men's World Cup.
The deal through 2027 includes the men's World Cup in 2026 co-hosted by the United States, Canada and Mexico and the 2027 Women's World Cup. Hosts of that tournament will be decided next month in a three-candidate vote.
The value of the Aramco deal was not disclosed but is likely the richest ever for FIFA by average annual value. The inaugural 32-team Club World Cup being hosted next year in the U.S. was not specified by FIFA though could be part of a separate deal.
"Through the partnership, Aramco and FIFA intend to leverage the power of football to create impactful social initiatives around the world," the soccer body said in a statement.
Saudi sponsorship will help fuel income for FIFA's 2023-26 commercial cycle which was conservatively budgeted to be $11 billion.
Revenue from broadcasting, sponsorship, licensing video games plus sales of tickets and hospitality packages was $7.5 billion for the four-year period tied to the 2022 World Cup in Qatar.
FIFA President Gianni Infantino has built close ties to Saudi Arabia and its Crown Prince Mohammed bin Salman since before the 2018 World Cup. That tournament in Russia was sponsored by state energy firm Gazprom.
The FIFA-Saudi links were maintained through fallout from the 2018 killing of Saudi journalist Jamal Khashoggi and despite critics making claims of "sportswashing" by the kingdom to improve its reputation.
The 2034 World Cup bidding was unexpectedly opened last October in a fast-track process seemingly expressly designed for Saudi Arabia to win, with only FIFA member federations in Asia and Oceania allowed to compete. It was made possible by FIFA brokering a three-continent deal announced the same day for the 2030 World Cup which will be played in Spain, Portugal, Morocco, Argentina, Paraguay and Uruguay.
Saudi Arabia was confirmed as the only 2034 candidate by the end of that month. Both the 2030 and 2034 decisions must be rubber-stamped by FIFA member federations later this year. No date or venue has been announced for the 211-member meeting.
Those members are in line for increased annual payments from FIFA in the decade leading to the Saudi-hosted World Cup.
FIFA's development program pays each federation up to $8 million over four years through 2026 with more available for specific projects such as stadiums, training centers and federation headquarters.
FIFA already had reserves of $4 billion after the 2022 World Cup in Qatar, which also had a top-tier sponsor from the fossil fuel industry: Qatar Energy.
The Visit Saudi tourist board was a third-tier sponsor of the tournament in Qatar, though a planned deal for the 2023 Women's World Cup was ended after pushback by organizers in Australia and New Zealand.
Soccer officials in those host countries cited the importance of gender equality in a reference to the limits on women's freedoms in traditionally conservative Saudi society.
Saudi soccer officials stress life there is changing fast as part of the Vision 2030 program to modernize society and the economy, directed by the crown prince, widely known as MBS.
Soccer, sports and entertainment have been key elements to the program with headline investments including the breakaway LIV Golf tour and buying English Premier League club Newcastle, which played in the Champions League within two years of a Saudi-backed takeover.
The Saudi domestic league was boosted with huge salaries to lure a slew of star players including Cristiano Ronaldo and Neymar to clubs which were effectively nationalized last year by the sovereign wealth Public Investment Fund chaired by the crown prince.
Source: Associated Press
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