The Saudi Arabia’s Public Investment Fund (PIF) is in the midst of negotiations with significant figures in the boxing industry to set up a league, which could significantly alter the competitive dynamics of the sport.
What Happened: Discussions are being held between the PIF and a number of influential boxing promoters, such as Matchroom Boxing and Golden Boy Promotions, with the intention of creating a new boxing league. The anticipated valuation of this new venture stands between $4 and $5 billion, with the PIF poised to acquire a minority share.
The exact format of the proposed boxing league has not been disclosed, and both the PIF and the promoters involved have refrained from commenting on the ongoing discussions.
Guided by the vision of Crown Prince Mohammed bin Salman, the PIF is diversifying its portfolio by investing in a variety of sports. This strategy falls in line with the nation’s Vision 2030 initiative, which seeks to diminish the economic dependency on oil.
Following its investments in golf, Formula 1, and soccer, boxing has emerged as the PIF’s latest interest in the sports arena, with considerations also being given to the formation of a new cycling league.
Why It Matters: The PIF’s contemplated foray into boxing is happening amidst a backdrop of considerable changes within the sport. For example, a highly awaited boxing event featuring Jake Paul and Mike Tyson has been rescheduled to November 15 and is slated to be broadcast live on Netflix Inc, representing the streaming service’s inaugural live sports event.
Nonetheless, the PIF’s ventures into sports have not been free of disputes. The investment in the LIV Golf series sparked a contentious relationship with the PGA Tour, leading to an attempted merger that is currently jeopardized due to stalled negotiations and scrutiny from a U.S. Senate committee.