Saudi Arabian investors circle around cash-strapped Premiership clubs – report
A rainbow over Welford Road.
Recent reports have claimed that Saudi Arabian investors have shown an interest in some of the Premiership clubs, including Midlands rivals Leicester Tigers and Northampton Saints.
The investors representing the Saudi sovereign Public Investment Fund (PIF) have been in talks with Tigers and Saints, as per the Telegraph, with the prospect of pumping huge amounts of money into the clubs being very real. Suggestions have been made that about £60 million could be invested.
Interestingly, this comes less than a year after the Tigers received a £12 million cash injection from executive chairman Peter Tom and board member Tom Scott as the club entered what was described as a ‘cash squeeze’.
Part of the deal would include the naming rights to the stadium as well as setting up a rugby academy in Saudi Arabia. It is also believed that Newcastle Falcons and Gloucester are also on their radar.
Investing heavily in sport
The PIF is no stranger to investing in sports in recent years with the high-profile purchase of Newcastle United in the Premier League a prime example, as is the exorbitant sums pumped in the Saudi Pro League spearheaded by Cristiano Ronaldo, while another case study is the LIV Golf league which shook up the golfing ecosystem.
In this context, the financial injection would be hugely welcomed with the situation in the Premiership incredibly difficult after the Covid-19 pandemic.
Three clubs in the form of Worcester Warriors, Wasps and London Irish all went under in the space of a year underlining the dire financial situation.
The potential move from the PIF has the capacity to significantly strengthen the financial position of not only the teams in question but also provide some much-needed stability to the Premiership as a whole.
Human rights
However, this potential move will have huge moral implications considering Saudi Arabia’s human rights record, which has been described as “appalling” by Amnesty International.
They have also been accused of ‘sportswashing’, which is the act of getting involved in sport to divert attention away from – and indeed improve – a tarnished reputation.
The Premiership refused to comment as the governing body claims it cannot comment on individual club matters.