Qatar is hosting the World Cup this November, but its much larger neighbor would like to take on the only global sporting event of comparable size.

Saudi Arabia wants to host the Olympics, calling it the “ultimate goal” of its sports strategy.

The country has leaned into sports as part of its efforts to diversify its economy beyond oil, though some have charged that the efforts are an attempt to “sportswash” Saudi Arabia’s checkered human rights record.

Beijing spent a reported $8.8 billion on the 2022 Winter Olympics. Germany has also shown interest in hosting the Games.

Sports Portfolio

Saudi Arabia has attracted attention as the backer of LIV Golf, which has lured golfers with paychecks often in excess of $100 million, but its sports and gaming portfolio has become quite extensive.

• The country’s Public Investment Fund owns a controlling stake in Premier League team Newcastle United.
• Saudi Arabia hosted its first Formula 1 Grand Prix last year.
• The country is hosting next year’s World Combat Games, plus the 2034 Asian Games, which Prince Abdulaziz bin Turki Al-Faisal said could be a precursor to the Olympics.

On Monday, Saudi Arabia became the first nation to approve Microsoft’s $68.7 billion acquisition of Activision Blizzard. The PIF holds a $2.9 billion stake in Activision Blizzard.

The fund also holds massive stakes in video game giants Nintendo, Electronic Arts, and Take-Two Interactive.

Arctos Sports Partners is investing in the Utah Jazz through a deal with Smith Entertainment Group.

Pending approval from SEG’s board of governors, the agreement — which, according to NBA regulations, has to be more than 1% — gives Arctos minority stakes in several teams in SEG’s portfolio.

• SEG and David Blitzer purchased Real Salt Lake of MLS in January for a reported $400 million, with Arctos joining as a limited partner.
• SEG founder Ryan Smith purchased the Utah Jazz in October 2020 for a reported $1.66 billion. The team is now worth an estimated $1.78 billion.

The agreement, which also includes Vivint Arena, comes with the “intention to bring a third professional sports franchise” to Utah.

When SEG invested in Real Salt Lake, it gained the option to bring back the NWSL’s Utah Royals FC. Earlier this year, NWSL commissioner Jessica Berman said the league will expand to 14 teams, likely by 2024.

Arctos Is Everywhere

Arctos has investments in more than 20 professional sports groups and franchises and was reportedly the first investment firm to offer private equity funding across MLB, MLS, the NBA, and the NHL. 

In the last year alone, Arctos has purchased stakes in NBA teams including Philadelphia 76ers owner Harris Blitzer Sports & Entertainment, the Golden State Warriors, and the Sacramento Kings.

The PGA Tour is in a fight with LIV Golf, and competition from the Saudi-funded challenger is inspiring new innovations from the 93-year-old Tour.

Tiger Woods and Rory McIlroy are leading a venture that will “have the world’s top golfers competing against each other in a non-green-grass, stadium environment,” according to Eamon Lynch of Golfweek. 

Their idea was presented during a players-only meeting on Aug. 16.

• Expected to launch in 2024, these one-day competitions are described as “technology forward” and will be played in front of a live audience. 
• LIV stars like Phil Mickelson and Bryson DeChambeau receive equity and revenue-sharing — Woods, McIlroy, and their PGA Tour colleagues could get equity, too. 
• The venture would “have private funding in addition to corporate partnerships and sponsors.”

The superstar duo’s proposal has buy-in from PGA Tour commissioner Jay Monahan, per Golfweek. 

Tiger the Elder Statesman

The best news for Monahan is the way Woods has stepped up to lead the counterattack against LIV.  

Golf Digest describes the 46-year-old as a “self-appointed shadow commissioner” whose goal is to “reshape the PGA Tour in a way that enough new money will flow to ensure top players will want to stay.”

“I think it’s pretty apparent that whenever we all get in the room there’s an alpha in there, and it’s not me,” McIlroy said of Woods.

E-commerce giant eBay has agreed to acquire TCGplayer — an online marketplace that has recently expanded its sports cards offerings — in a deal that could fetch up to $295 million. 

The acquisition will allow eBay to expand its footprint in an emerging market after the company’s “State of Trading Cards” report revealed a 142% increase in domestic trading card sales in 2020 compared to 2019. 

• The deal is expected to close in Q1 2023, pending closing conditions.
• TCGplayer will continue to operate autonomously once the deal is closed.
• The company has over 1 million active customers in its marketplace as of March 2022.
• It generates revenue with a transaction fee that ranges between 8.95% and 10.25%. 

The pending deal arrives after TCGplayer secured $35 million in growth financing from Vista Credit Partners in June 2021. 

In July, TCGplayer acquired content provider and events coordinator ChannelFireball and inventory management solution company BinderPOS. 

Big Business 

Trading cards continue to be a hot commodity after the category saw $2 billion in transactions in the first half of 2021, which was equal to the total value of transactions in 2020.

Earlier this month, an SEC filing revealed that sports card trading platform Alt is in the process of raising $40 million. To date, the company has raised $305 million, per Crunchbase.