Summary: Emboldened by surging crude oil prices, Saudi Arabia make waves on the international stage, as it manages to create a World Champions League after successfully buying the UEFA Champions League franchise.
Saudi Arabia’s radical restructuring of its economy away from its dependency on oil revenues towards becoming a tourism, leisure and entertainment powerhouse, receives an added boost from a meteoric rise in oil prices, which reach $150 per barrel around mid-year on stronger-than-expected demand, as the green transformation begins to sputter amid rising costs, and after OPEC+, led by Saudi Arabia, maintains a firm grip on supply.
In recent years, Saudi Crown Prince Mohammed bin Salman, a known football enthusiast, has overseen the revamping of the Saudi Pro League, with a focus on improved on-pitch performance through the acquisition of world-class players in order to become one of the top 10 football leagues in the world. However, with oil revenues surging, MBS sees an excellent opportunity to go one step further and, backed by FIFA, the Kingdom launches a successful attempt to buy the UEFA Champions League, one of the world’s most prestigious football tournaments.
Now holding the keys to the cherished football competition, the Saudis immediately move to transform it into a global club competition that FIFA, despite offering prize money of $150 million, had tried but failed to establish amid resistance from UEFA and the European Club Association, and not least the biggest clubs in Europe, fearing risk of players' fatigue. However, with the Saudi takeover, the new offer reaches a level where the big clubs cannot say no, especially after being offered money for all 220 leading clubs under the European Club Association umbrella. A FIFA World Champions League becomes a reality, with a considerable number of games being played in Riyadh. The new competition ends up consisting of 48 teams, with European clubs just like the current UEFA Champions League format being guaranteed 32 spots, Asia/Middle East, Africa, and the Americas getting five spots each in the tournament, and the remaining going to Oceania.
Market impact: Manchester United stock price doubles and Brent crude go to $150 per barrel.
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Commodity Strategy
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Head of Commodity Strategy
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)