FIFA forges closer ties with Saudi Arabia through Aramco global sponsorship

FIFA forges closer ties with Saudi Arabia through Aramco's global sponsorship

The agreement was predicted and became unavoidable when Saudi Arabia was almost certain to host the men's World Cup in 2034.

The agreement extends until 2027 and covers the 2026 men's World Cup, which will be co-hosted by the United States, Canada, and Mexico, as well as the 2027 women's World Cup. The tournament's hosts will be picked in a three-candidate vote next month.

The Aramco deal's amount was not announced, but it is believed to be FIFA's biggest ever in terms of average yearly value. FIFA did not specify if the inaugural 32-team Club World Cup, which will be held in the United States next year, would be part of a separate arrangement.

"Through the partnership, Aramco and FIFA intend to leverage the power of football to create impactful social initiatives around the world," the football organization stated in a statement.

Saudi sponsorship will help fuel income for FIFA’s 2023-26 commercial cycle, conservatively budgeted to be $11 billion.

For the four years leading up to the 2022 World Cup in Qatar, revenue from broadcasting, sponsorship, video game licensing, ticket sales, and hospitality packages totaled $7.5 billion.

Since before the 2018 World Cup, FIFA President Gianni Infantino has maintained tight connections with Saudi Arabia and its Crown Prince Mohammed bin Salman. Gazprom, Russia's national energy business, sponsored the competition.

The FIFA-Saudi relations were maintained in the aftermath of the 2018 murder of Saudi writer Jamal Khashoggi, despite accusations of "sportswashing" by the monarchy to boost its brand.

The 2034 World Cup bidding was abruptly launched in October in a fast-track procedure that appeared to be structured specifically for Saudi Arabia to win, with only FIFA member federations from Asia and Oceania eligible to compete. It was made feasible by FIFA brokering a three-continent agreement announced the same day for the 2030 World Cup, which would be held in Spain, Portugal, Morocco, Argentina, Paraguay, and Uruguay.

By the end of the month, Saudi Arabia had been confirmed as the sole applicant for the year 2034. Both the 2030 and 2034 decisions must be approved by FIFA member federations later this year. The date and location of the 211-member meeting have yet to be revealed.

Those members are set to receive enhanced yearly payments from FIFA in the decade running up 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 event in Qatar, but an agreement for the 2023 Women's World Cup was canceled due to opposition from organisers in Australia and New Zealand.2023 Women's World Cup2023 Women's World Cup

Football authorities in those host countries emphasized the significance of gender equality, referring to the restrictions on women's liberties in traditionally conservative Saudi society.

Saudi football officials stress life there is changing fast as part of the Vision 2030 program to modernise society and the economy, directed by the crown prince, widely known as MBS.

Football, sports, and entertainment have been significant components of the initiative, with notable investments like the breakaway LIV Golf Tour and the acquisition of English Premier League team Newcastle, who competed in the Champions League within two years after 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 that were effectively nationalised last year by the Sovereign Wealth Public Investment Fund chaired by the crown prince.