Why Is Saudi Arabia’s Financial Backing of the Club World Cup Controversial?

06-14-2025, MIAMI, Fla.— Why has Saudi Arabia’s substantial financial support for the 2025 FIFA Club World Cup ignited fierce debate as it kicks off Saturday in the United States? The kingdom’s $1 billion investment through a DAZN broadcast deal and sponsorships by its Public Investment Fund (PIF) and Aramco has fueled concerns about undue influence over FIFA, especially as Saudi Arabia prepares to host the 2034 World Cup, prompting urgent calls for transparency in football governance.

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What Is Saudi Arabia’s Role in the Tournament?

Saudi Arabia’s financial backing underpins the expanded 32-team Club World Cup. In December 2024, DAZN secured global broadcast rights for $1 billion, funded shortly after by a $1 billion PIF investment in DAZN. PIF and Aramco also emerged as tournament sponsors, while Saudi club Al-Hilal, owned by PIF, competes in Group H alongside Real Madrid. Given FIFA's previous struggles to attract broadcasters and sponsors, this multifaceted involvement has drawn significant attention.

Why Does This Spark Controversy?

Critics argue that Saudi Arabia’s investment aligns suspiciously with FIFA’s decision to award the kingdom the 2034 World Cup, announced days after the DAZN deal. The fast-tracked 2034 bidding process, which limited competition to Asia and Oceania, drew accusations of favoritism, with only Norway’s football federation abstaining from approval. Environmental and human rights groups question whether financial incentives swayed FIFA, undermining the bidding’s integrity.

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How Does This Affect Football Governance?

The DAZN deal, enabling free global streaming of all 63 matches, has been hailed as a boon for accessibility but criticized as a strategic move to bolster Saudi Arabia’s global image. The tournament’s $775 million prize pot could widen competitive imbalances by favoring wealthier clubs, with winners earning up to $97 million. Critics fear such financial clout distorts domestic leagues and prioritizes profit over fairness.

What Are the Broader Implications?

Saudi Arabia’s investment is considered part of its broader sports strategy, following high-profile ventures in boxing, golf, and Formula 1. By backing the Club World Cup, the kingdom aims to position itself as a football powerhouse ahead of 2034, with Al-Hilal’s participation and Al-Ahli’s pre-qualification for 2029 reinforcing this ambition. However, environmental groups decry the tournament’s carbon footprint, spanning 11 U.S. cities, as conflicting with sustainability goals.

Did you know?
Saudi Arabia’s $1 billion investment in the Club World Cup via DAZN and PIF sponsorships coincided with its unopposed 2034 World Cup bid, fueling transparency concerns.

How Is FIFA Responding?

FIFA insists the Club World Cup promotes global football development, with profits redistributed via a $250 million solidarity program. A spokesperson denied claims of calendar congestion, noting the tournament occurs every four years with a maximum of seven matches per finalist. FIFA also highlighted nine commercial sponsors, rejecting the notion that Saudi Arabia dominates funding.

What Do Critics Demand?

Advocates for reform urge FIFA to disclose financial agreements and ensure transparent bidding processes. Player unions and European leagues, threatening legal action over the packed schedule, demand dialogue on governance. Without clear safeguards, Saudi Arabia’s growing influence risks further eroding trust in FIFA’s decision-making.