Saudi Arabia closes in on deal to create new cycling league – sources
- An investment firm owned by Saudi Arabia’s Public Investment Fund (PIF) has emerged as a frontrunner to back a new cycling league, three people familiar with the matter told Reuters, the latest move by the kingdom to buy into global sports.
SRJ Sports Investments, founded last year, is in exclusive negotiations over a potential investment of around 250 million euro ($270 million) in the venture being spearheaded by a number of major European cycling teams, one of the people said.
If successful, it would mark Saudi Arabia's first significant involvement in cycling after pouring billions into other sports worldwide such as football, motorsports and martial arts. Sports is one of the pillars of the government's Vision 2030 economic diversification plan that seeks to build new industries and create jobs. Some critics have called it an effort to distract from its human rights record.
SRJ is expected to finalise commercial aspects of a deal over the next two months after prevailing in an auction over other investors including private equity fund CVC, the person said.
Consulting firm EY had been seeking expressions of interest from investors for a new project, Reuters reported in October. Some top cycling teams are concerned that the lion's share of profits from the main races, including the Tour de France, go to their organisers and a new league could be a way to recalibrate earnings, sources previously told Reuters.
The venture, which may amalgamate new and existing races, is being led by a handful of teams including Visma-Lease a Bike and billionaire businessman Jim Ratcliffe’s Ineos Grenadiers, those sources said. The sources for this story, speaking on condition of anonymity, cautioned a deal may not be sealed and talks are ongoing.