Gulf countries' sports investments are being put to the test in terms of returns.

According to the specialized sports economics platform, massive investments by Gulf countries in international sports have raised serious questions about economic returns, financial sustainability, and the success of business objectives. A Financial Times report published in October 2026 suggests that some costly sports projects can no longer guarantee long-term success based solely on government funding and strategic goals.

A notable example is the LIV Golf League, a project backed by Saudi Arabia’s Public Investment Fund, which has struggled to become a sustainable business. Changes in player composition, business challenges, and doubts about return on investment have fueled discussions about the competition’s future.

These developments come at a time when countries in the region have increasingly used sports to boost tourism, enhance national branding, attract investment, and increase international influence in recent years. However, shifting geopolitical conditions and the need for more accurate cost assessments have made it crucial to differentiate between strategic goals and the financial performance of projects.

For the sports industry, this trend sends a clear economic message: attracting major stars and hosting expensive events alone is insufficient to ensure profitability. Sustainable revenue from broadcasting rights, sponsorships, ticket sales, merchandise, and fan experiences must be evaluated alongside operational and capital costs.

This experience is also highly relevant for Iranian clubs and organizers. While the scale of investment and market conditions in Iran differ, designing a business model before incurring costs, diversifying revenue streams, and measuring project economic returns can prevent long-term reliance on unstable resources.

Source: Financial Times report on changing conditions of Gulf countries’ investment in sports, October 11, 2026.

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