- Boxing is the latest sport to attract potential investment from Saudi Arabia's PIF
- PIF is looking to invest in joint ventures with stakeholders in the sports world.
- Matchroom Boxing and Golden Boy Promotions are involved in the talks.
Saudi Arabia's Public Investment Fund (PIF) is in talks with boxing officials over the creation of a new £4 billion league that could transform the competitive landscape of the sport, people familiar with the matter told Reuters.
The PIF is considering investing in a joint venture with boxing interests to host more matches, the people said, asking not to be identified discussing the matter.
Several major promoters, including Matchroom Boxing and Golden Boy Promotions, are involved in the talks and the new company could be valued at $4 billion to $5 billion (£3.1 billion to £3.9 billion), one of the people said. PIF wants to set up a venture bringing together major sports organizers and will take a minority stake, the person added.
Turki Al-Sheikh, a close aide to Crown Prince Mohammed bin Salman with extensive ties to sports and who serves as chairman of the Saudi General Entertainment Authority, oversaw final talks on a potential deal about a month ago, the second person added.
Reuters was unable to provide details about how the league would be structured.
PIF and Matchroom Boxing declined to comment, while Golden Boy Promotions did not respond to requests for comment.
Currently, boxing is made up of several boxing organizations, including the World Boxing Council, the International Boxing Federation, the World Boxing Association, and the World Boxing Organization, each of which has its own rules regarding championship belts.
Saudi Arabia is pouring billions of dollars into sports under de facto ruler Crown Prince Mohammed's Vision 2030 plan to attract tourism, boost the private sector and create jobs while weaning the kingdom off its reliance on oil.
Boxing is the latest sport to receive potential investment from the PIF, which is chaired by the crown prince, after golf, Formula 1 and soccer, and Reuters reports that the fund is also considering investing in a new cycling league.
“Boxing could increase investor interest in Saudi Arabia,” said Sebastion Sans, a senior researcher at consultancy CARPO.
“Through investments in sports, Saudi Arabia hopes to expand market access, establish new political and economic networks, increase its attractiveness as a tourist destination, and raise global awareness of the Kingdom's ongoing transformation.”
