The Public Investment Fund (PIF) of Saudi Arabia, through its sports-focused arm SURJ Sports Investment, has finalized a $1 billion deal to acquire a minority stake (less than 10%) in DAZN Group, the global sports streaming platform owned by billionaire Sir Leonard Blavatnik. The deal values DAZN at approximately $10 billion and establishes a joint venture—DAZN MENA—aimed at expanding live and on-demand sports content in the Middle East and North Africa (MENA) region.
This partnership provides DAZN with critical financial support to offset its ongoing losses and maintain its competitive content acquisition strategy. Saudi Arabia’s investment in DAZN aligns with the kingdom’s Vision 2030 agenda, which seeks to reduce reliance on oil by developing sectors such as tourism, entertainment, and sports. Over the past decade, the Public Investment Fund (PIF) has orchestrated high-profile acquisitions, including Newcastle United Football Club, the LIV Golf series, and partnerships with major boxing and tennis events. These ventures aim to position Saudi Arabia as a global sports hub while enhancing its international reputation.
SURJ Sports Investment manages a $4 billion sports fund in collaboration with Enfield Investment Partners, reflecting Saudi Arabia’s broader commitment to the sports sector. DAZN’s existing relationships in the region—such as a 2024 PGA Tour Pass launch, a partnership with Pulse Media, and free WTA streaming—suggest that the MENA market was already on the company’s radar. The new joint venture, DAZN MENA, will now centralize these efforts and broadcast Saudi-hosted events globally, expanding the kingdom’s cultural and economic influence.
Launched in 2016, DAZN has become a major player in sports streaming, holding rights to elite European football leagues (Serie A, La Liga, Bundesliga), UFC events, and various boxing matches. Nevertheless, DAZN has faced significant financial challenges, reporting a $1.4 billion loss in 2023 despite $2.9 billion in revenue. Its content acquisition costs climbed to $3.1 billion, partly due to bidding wars with tech giants like Amazon Prime and Netflix.
Sir Leonard Blavatnik, DAZN’s principal backer through Access Industries, has injected over $6.7 billion into the company since its inception, including $827 million in 2023 alone. The Saudi investment offers vital liquidity to help DAZN pursue broader ambitions, sometimes referred to as becoming the “Spotify of sports” by integrating betting, NFTs, and e-commerce into its platform. Although specific revenue projections vary, executives and industry insiders suggest that such a move could eventually place DAZN’s valuation well above its current level.
The newly formed DAZN MENA will prioritize live broadcasts of Saudi sports properties—including the Saudi Pro League, Riyadh Season boxing events, and the Six Kings Slam tennis exhibition—to audiences both in the MENA region and worldwide. Although DAZN retains editorial control, Saudi Arabia’s role in content distribution and strategic decisions in the region could expand the kingdom’s soft power. By securing such high-profile partnerships, Saudi Arabia is striving to rebrand itself on the global stage.
One of DAZN’s most notable recent deals is its $1 billion acquisition of rights to the 2025 FIFA Club World Cup, which the platform plans to broadcast free-to-air in certain markets to attract new viewers. DAZN also acquired Australia’s Foxtel Group in 2023 for $2.1 billion, securing rights to the AFL and NRL and further expanding its reach in the Asia-Pacific region.
DAZN’s move toward a freemium model is another major component of its strategy to attract a large user base. The company recently hired Elena Novokreshchenova to head its free-to-air (FTA) tier globally, which complements the premium subscription model. With an estimated 300 million monthly users—only 20 million of whom are paid subscribers—DAZN hopes to convert casual, FTA viewers into regular pay subscribers over time. Saudi Arabia’s presumed bid to host the 2034 FIFA World Cup has intensified scrutiny, with journalists and NGOs expressing concerns about the influence of state-backed investments on sports governance.
For the kingdom, however, partnering with DAZN offers a direct route to mainstreaming Saudi sports competitions. High-profile events, such as Riyadh Season boxing matches or Saudi Pro League fixtures featuring international stars like Cristiano Ronaldo, will gain traction in over 200 markets through DAZN’s extensive distribution.
As the streaming wars escalate, traditional broadcasters (Sky, ESPN) and tech giants (Amazon, Netflix) are competing fiercely for sports rights. DAZN’s subscription-reliant model has proven expensive to sustain, prompting an expansion of revenue channels such as advertising, free-to-air content, and betting partnerships. The infusion of Saudi capital allows DAZN to remain aggressive in rights auctions, potentially driving up costs for competitors. Still, this approach could overinflate market values and make profitability elusive.
The entry of sovereign wealth funds into sports media has introduced unprecedented financial muscle. DAZN’s reported $1 billion deal for the Club World Cup—if confirmed—illustrates how state-backed investors might outbid traditional media companies. Many in the industry believe that DAZN’s newfound capacity to escalate bids may result in higher overall rights fees for premium sports properties, from the UEFA Champions League to the NBA.
By increasing the availability of free-to-air sports, DAZN MENA could challenge regional paywall-dependent rivals, mirroring strategies used by other platforms. Although Qatar’s BeIN Sports faced substantial financial losses during a piracy dispute linked to Saudi Arabia, the direct parallel to DAZN’s freemium approach is less certain. Rather than piracy, DAZN’s strategy hinges on monetizing a large user base through advertising and eventual premium upgrades, potentially reshaping consumer expectations in MENA markets.
The partnership between Saudi Arabia and DAZN marks a transformative moment in the evolving landscape of sports, media, and geopolitics. For Saudi Arabia, the deal advances its Vision 2030 goals by leveraging sports investments to diversify its economy and bolster global influence. For DAZN, the $1 billion investment offers a financial lifeline that supports continued expansion and experimentation with new revenue models.
Nonetheless, concerns remain about the ramifications of state-backed funding on competition, market inflation, and ethical considerations related to human rights. Whether DAZN’s strategy will yield sustainable profitability or exacerbate volatility in sports media rights is still uncertain. For now, one thing is clear: the rules of engagement have changed, and both industry incumbents and emerging platforms must adapt to a marketplace where capital and strategic influence often converge in ways that transcend pure financial returns.
