The majority of 21st-century sport has been defined by rights agreements, sponsorship deals, and money creation techniques. This dominant worldview has its roots in neoclassical economics and free markets.
Football is the most popular sport in the world, with millions of fans worldwide. Money has become increasingly crucial in football over the last two decades. The global sports industry is worth up to $620 billion today. With growth that is faster than global GDP, its long-term prospects appear strong. The sports industry today spans the field of play—from the food and memorabilia stands at the stadium, to media rights and sponsorships, and football represents a prominent and high percentage of this industry.
In England, 90 percent of Premier League and Championship clubs are owned by private majority owners, with foreign investors owning around 60 percent of Premier League clubs. This is likely due to the fact that the Premier League is the most watched national competition in the world, which attracts foreign investors (Visser, 2021). In December 2010, Qatar became the first Middle Eastern country to be awarded the privilege to host the FIFA World Cup, the region's most high-profile sporting event. FIFA and the International Olympic Committee (IOC) have recently expanded their hosting options beyond the traditional western nations. Newcastle United was to be purchased by a Saudi Arabian state-owned investment firm in 2020. As a result, local property developer Stripe Homes published a report detailing the 20 previous major Premier League takeovers.
The Gulf region has grown in importance and influence in the global community as well as in the world of sport. Accepting that there is now a geopolitical economy of sport aids in addressing and framing the difficulties raised by global trends in sport as well as the transnational flow of money, resources, and assets. Leaders from the Arab Gulf have been splurging on sports. Gulf officials claim the spending is part of their drive to diversify their oil-dependent economies. Throughout the Gulf region, many sporting events have been organized. The governments of Qatar, Abu Dhabi, and Dubai, according to this theory, have used wisely sport for commercial, domestic, and international goals. (Miller, 2017).
In preparation for the 2022 World Cup, Qatar has embarked on an unprecedented infrastructure development initiative. A significant investment on eight amazing stadiums, as well as on a new port, rail, and airport infrastructure (Thani & Heenan, 2017). With Abu Dhabi's Formula One track serving as the centerpiece of the $40 billion Yas Island development. Saudi Arabia plans to invest billions of dollars in the Qiddiya sports and entertainment project outside Riyadh, which will include a racing complex and an "Olympic-style" city.
With their massive investment in stadiums building and the development of athletic facilities throughout the area, the sheikhdoms have left a bigger influence on international and Asian football. Several sheikhs have bought football clubs in the twenty-first century. In October 2011, Qatari business man Mr. Nasser Al-Khelaifi was named President and Chief Executive Officer of PSG. Mansour bin Zayed Al-Nahyan, an Emirati politician and businessman who is a member of Abu Dhabi's royal family and the Supreme Council of Petroleum, he has been able to acquire clubs in various parts of the world through his economic group City Football Group, including Manchester City in England, Girona FC in Spain, New York City in the United States, Melbourne City in Australia, Yokohama F. Marinos in Japan, and Club Atlético Torque in Uruguay. In football, the sheikhs' culture is expanding. The Arab economy permits billionaire Arabs to invest in football clubs all over the world, who are enticed by the promised financial boost and the potential for unanticipated rewards. According to the emirate's media office, the sports sector provides $1.08 billion per year to Dubai's economy, which stages a variety of national and international events and attracts visitors from all over the world.
Qatar Airways is the national airline of the State of Qatar and one of the aviation industry's big success stories. Qatar Airways has been named Airline of the Year 2021 by Airline Ratings. The airline has also clinched the Best Middle East Airline, Best Catering, and the Best Business Class awards; marking the third year in a row Qatar Airways has achieved the Best Business Class accolade.
In the world of football, Qatar Airways is currently sponsoring the UEFA Euro 2020™, and has an extensive global sports partnership portfolio that includes football governing bodies such as FIFA, UEFA and CONMEBOL. As an official FIFA partner, Qatar Airways has sponsored mega events including the 2019 and 2020 editions of the FIFA Club World Cup™, and will sponsor the FIFA World Cup Qatar 2022™. Qatar Airways also sponsors some of the world’s biggest football clubs including Paris Saint-Germain, AS Roma, Boca Juniors, FC Bayern München, K.A.S. Eupen, and Al Sadd SC (the Peninsula Newspaper July 2021).
Emirates is the United Arab Emirates main airline and one of the two flag carriers. The airline is part of The Emirates Group and is based in Garhoud, Dubai. Sporting events and teams appear to be one of Emirates most popular sponsorship targets. Seven teams, including AC Milan, Arsenal FC, Real Madrid, and others, are sponsored by Emirates. Emirates and Arsenal Football Club struck a sponsorship contract that is regarded historic and the largest with any English football club in history. Arsenal will receive £30 million per year from the company. It comprises a logo with a motto as well as the name's stadium rights. These are the top football teams in the world. They have millions of followers on social media. The football team's large audience has helped the airline gain additional revenue.
Athletes, teams, owners, sponsors, investors, and broadcasters have all profited from the surge in sports investment. It has opened up new avenues for achievement and growth. However, all of this money does not guarantee greater stability. While large inflows might transform a team or a league, players and coaches can be left high and dry when funding stops. It is really tough position where the players are stuck in the middle, sometimes to their advantage because they are reaping financial gains, but eventually to their disadvantage because they will not be able to keep up with the demands of all of the additional competitions and traveling.
References:
Miller, K. R. (2017). How Qatar, Abu Dhabi, and Dubai are employing sports to make economic, political, and international gains. Manajemen Asuhan Kebidanan Pada Bayi Dengan Caput Succedaneum Di Rsud Syekh Yusuf Gowa Tahun, 4(August), 9–15.
Thani, S., & Heenan, T. (2017). The ball may be round but football is becoming increasingly Arabic: oil money and the rise of the new football order. Soccer and Society, 18(7), 1012–1026. https://doi.org/10.1080/14660970.2015.1133416
Visser, J. (2021). The impact of relocation allowances on house prices.
Comments