2021 was the year Saudi Arabia made an aggressive move into sports. The LIV Tour would eventually rival the PGA Tour in golf. Premier League club Newcastle was bought with promises of major titles and world stars at their home stadium, St James' Park.
Five years later, the tone is different. Since the beginning of 2026, sports investments have decreased. It has already been clear that Saudi Arabia will stop financing the LIV tour from the beginning of the year, and the question is whether the biggest blow came recently when Newcastle coach Eddie Howe chose to leave the coaching position he had held for five years.
According to several British media outlets, Howe chose to resign following the departure of several stars such as Alexander Isak and Anthony Gordon. According to The Telegraph, Eddie Howe lost confidence in the club's sporting initiatives.
Lower oil revenues are putting pressure
That Saudi Arabia is pulling the handbrake and downgrading sports is expected, says researcher Anna Vidén, who is affiliated with the Middle East and North Africa Program at the Swedish Institute for International Affairs.
We see a more pragmatic approach after several years of large-scale and in some cases unrealistic and unrestrained investments in glamorous mega-projects, says Vidén.
The big goal is the 2034 World Cup, where a completely new city will be ready - Neom. A new stadium with a capacity of 46,000 spectators will also be built in the city. But it is far from certain how it will turn out. The Financial Times has examined the much-vaunted construction and reports that the project has been scaled back significantly. Costs have skyrocketed while lower oil revenues are putting pressure on financing.
Focus on other areas
Saudi Arabia has also chosen to focus on other areas than spending money on individual sports stars.
E-sports and gaming, large-scale domestic infrastructure linked to the 2034 FIFA World Cup, and commercial partnerships in collaboration with the private sector. Saudi Arabia has earmarked $38 billion for the computer games industry through the state-owned company Savvy Games Group and is also investing in becoming the global hub for e-sports, says Vidén.
There is also a focus on mineral extraction, developing a domestic defense industry, and AI.
Now that the bar has been lowered, what signal does that send to the outside world?
It is the geopolitical uncertainty in the Middle East and the relatively low return on the previously more aggressive sports investments that have driven the reprioritization. This does not mean that Saudi Arabia is giving up its ambitions, but rather that they have realized that they must economize on resources in order to deliver when it comes to the 2034 World Cup, says researcher Anna Vidén.
+ The LIV tour
Stars like Bryson DeChambeau, Brooks Koepka, Phil Mickelson, Cameron Smith and Jon Rahm were lured over to the LIV tour in 2022. CNBC reports that LIV has so far cost financiers in Saudi Arabia nearly SEK 50 billion in total because each competition has prize money of nearly SEK 300 million.
Earlier this year, it was announced that Saudi Arabia's sovereign wealth fund (PIF) would stop funding the controversial LIV tour after this year. The tour is now looking for new investors to continue.
+ Newcastle United
Bought in 2021 with promises of big titles and world stars. So far, there has been a title in the League Cup and a game in the Champions League. The fall of 2026 looks more uncertain than in a long time for the classic Premier League club. Big names have left and investments in the player squad have failed.
+ Lowered ambitions for the World Cup city Neom
The project has been scaled down significantly. “The Line” was presented as a 170-kilometer-long mirror city for nine million inhabitants, but those plans have proven unrealistic. The project is being reshaped into a significantly smaller stage.
Costs have also skyrocketed as lower oil revenues have strained state finances. Saudi Arabia has also chosen to shift its focus more to major events such as Expo 2030 and the 2034 World Cup. Crown Prince Mohammad bin Salman also ordered a re-prioritization. Neom is to be a center for industry, AI and renewable energy. Areas that experts say will yield better economic returns, according to the Financial Times.
+ 2029 Asian Winter Games postponed
The plan was for the games to be held in Trojena, an area of Neom where "winter temperatures drop below zero degrees and where year-round temperatures are generally ten degrees cooler than the rest of the region," according to the project's website.
But in January this year, the Saudi Arabian Olympic and Paralympic Committee and the Olympic Council of Asia announced that the Games would be held at a later date. A new date has not yet been announced.
The Asian Winter Games consist of competitions in skiing, snowboarding, ice hockey and figure skating.
