Saudi Arabia’s Public Investment Fund (PIF) has long pursued a clear investment strategy to turn the Kingdom into a global sports hub. This approach involved acquiring sports teams, launching leagues, and hosting major tournaments. However, recent developments have led to a strategic shift. The Iran conflict revealed vulnerabilities in relying heavily on physical sports assets like stadiums and race tracks.

Earlier this year, PIF announced it would stop funding LIV Golf, a high-profile initiative worth billions aimed at attracting top golfers from the PGA Tour. This decision coincided with selling a 70% stake in Saudi Arabia’s top football club, Al-Hilal, and pulling out from hosting the Asian Winter Games and Rugby World Cup.

Rather than a retreat, PIF has redirected its focus. A consortium led by PIF and including Jared Kushner’s Affinity Partners recently completed a $55 billion acquisition of Electronic Arts (EA), a leading video game developer known for sports games like Madden NFL.

The acquisition marks PIF’s entry into America’s favorite sport, reaching NFL fans by controlling the company that licenses all 32 NFL teams in virtual form. As Drew Brees and Larry Fitzgerald approach their Hall of Fame inductions, PIF has carved a new path into the American sports market.

Gaming: A Core Strategy

Saudi Arabia’s investments in sports are fundamental to Vision 2030, which aims to diversify the economy away from oil and increase geopolitical influence. Critics see it as a facade for the country’s poor human rights record.

PIF’s investment strategy has successfully garnered attention. The Kingdom holds rights to host the 2034 FIFA World Cup and remains active in sports like boxing, mixed martial arts, and motorsports.

However, investments in physical sports deliver temporary attention and revenue spikes. Big events bring vast sums but are fleeting. Owning a team may capture fan loyalty and generate merchandise sales, but profits are limited to that team’s success.

The purchase of EA allows Saudi Arabia to surpass these limits, especially entering the American market. EA’s exclusive NFL agreement continues till 2025, ensuring Madden remains the only authentic NFL simulation, played over 2 billion times annually.

EA also holds rights to College Football games, widening its engagement with American fans. The company sees significant revenue, nearly $7.5 billion last year, from these loyal fan interactions.

Data and Revenue from Gaming

Beyond regular revenue, PIF’s interest in EA leverages extensive consumer data. EA collects detailed information on customers’ accounts, purchase histories, gameplay statistics, and more. This data is essential for understanding player retention, purchasing behaviors, and ad responses.

EA is expanding its business model, evidenced by launching EA Advertising. This new venture allows brands access to games reaching over 120 million players monthly, making fan engagement measurable and continually monetizable.

Gaming avoids the instability of physical assets in the Middle East. For instance, the US-Israeli conflict with Iran led to the cancellation of Saudi Arabia’s Formula One race, causing substantial financial losses. Yet, Madden players in various US cities continued playing.

The PIF’s strategy for 2026-30 emphasizes sustained value creation, impacting investment efficiency positively.

Challenges and Future Considerations

Before the Saudi-led acquisition, EA was publicly traded for over thirty years, with shares exceeding $200 before privatization. The acquisition presents challenges for PIF.

Owning EA differs significantly from a straightforward purchase; the expectation is to maintain product quality and meet consumer demands. Of the $55 billion paid for EA, approximately $20 billion is debt, which EA must service. EA plans to cut around $700 million in annual costs, sparking concerns over potential layoffs and quality impacts.

If monetization or cost-cutting undermines product quality, the fan base’s loyalty may diminish. Fans might retain last year’s game, skip new versions, or shift focus elsewhere.

PIF’s ownership of EA allows indirect reach across NFL fan bases, but retaining that connection requires ongoing fan engagement.