Is Saudi Arabia the financial savior of DAZN?

The Saudi Arabian sports scene is becoming an increasingly lucrative arena, and DAZN, the streaming giant backed by billionaire Len Blavatnik, may have found a lifeline there. After years of significant financial losses, DAZN is exploring potential partnerships and expanding its footprint in the Middle East. The streaming platform’s relationship with the Saudi Pro League deepens and more prominent sporting events take place in the area. Thus, DAZN may be putting itself in a position to attract strategic and financial backing from Saudi businessmen.

Many in the sports broadcasting industry have long anticipated its arrival as a revolutionary step; particularly toward a more universally accessible and engaging sporting experience. Len Blavatnik’s company made significant strides in acquiring broadcasting rights for major sports leagues; including Italy’s Serie A and Germany’s Champions League. However, despite its impressive portfolio, DAZN has struggled financially.

In 2022 and 2023 alone, DAZN lost over $3 billion, a staggering figure for any business, regardless of its backer’s wealth. Although Blavatnik injected $240 million into the company this year, that figure is down from the $730 million he invested last year; signaling a shift in strategy. The broadcaster has been seeking external investors; reportedly aiming to raise up to $1 billion to stabilize its operations and accelerate global expansion, per Bloomberg.

Saudi Arabia’s growing sports ambitions

Saudi Arabia’s ambitions in the sports world have skyrocketed in recent years; as part of its Vision 2030 plan, which seeks to diversify the country’s economy beyond oil. The Kingdom has invested heavily in sports, acquiring high-profile athletes for the Saudi Pro League. They have also hosted major international events such as boxing, tennis, and motorsport. Following in the footsteps of Qatar’s Al Jazeera, which launched a global sports network in beIN Sports, Saudi Arabia has been mulling over establishing its own major sports broadcaster to compete on the world stage.

This is where DAZN’s financial woes and the Saudi ambitions intersect. Through its programming of the Saudi Pro League and recent collaborations with key Saudi sports teams, DAZN is becoming more integrated into the Saudi sports ecosystem. This might be a win-win situation for both sides.

Recently, the corporation formed a relationship with Al-Hilal, clearly indicating its goal to develop connections with Saudi Arabia. The deal includes the creation of a dedicated global channel for the club; offering exclusive content and behind-the-scenes access to fans worldwide. This marks an exciting step in DAZN’s collaboration with the Saudi Pro League.

DAZN and Saudi Arabia: Strategic partnership in making?

DAZN’s involvement with Saudi sports extends beyond soccer. In December 2023, the company broadcasted the “Day of Reckoning” boxing event; a headline show featuring some of boxing’s biggest stars. It was part of the Riyadh Season, a series of cultural and entertainment events that has also drawn international attention. DAZN was also named the official broadcast partner for the Riyadh Tennis Cup; showcasing exhibition matches between tennis greats like Novak Djokovic, Carlos Alcaraz, Aryna Sabalenka, and Ons Jabeur.

These moves align DAZN closely with Saudi Arabia’s efforts to promote itself as a hub for international sports; leveraging both the Kingdom’s financial clout and DAZN’s global platform to broadcast events to a worldwide audience.

The potential for Saudi investment in DAZN could provide the broadcaster with the financial stability it desperately needs. As DAZN seeks to raise fresh funding, its blossoming relationship with Saudi Arabia may present an opportunity for a deeper financial partnership. Bloomberg adds that the streaming service is exploring ways to raise up to $1 billion. Consequently, Saudi investors may be a perfect match, considering their goals of increasing their worldwide influence in sports.

While no formal deal has been struck, industry insiders believe that the British platform’s growing presence in the Saudi sports scene could pave the way for a financial partnership. Saudi Arabia has the resources and ambition, while DAZN has the platform and the audience. A collaboration between the two could be mutually beneficial, providing DAZN with a much-needed financial injection while giving Saudi Arabia a global broadcasting partner to amplify its sports endeavors.

Photo: IMAGO / Kirchner-Media