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WASHINGTON — Qatar’s sovereign wealth fund is close to acquiring a stake in three US sports teams in a significant move that will potentially alter US sports, increase Qatari influence in Washington and more.
The US news outlet Sportico reported on June 22 that the Qatar Investment Authority is buying a roughly 5% stake in Monumental Sports & Entertainment as part of a $4.05 billion deal. Monumental is the parent company of the Washington Wizards, Capitals and Mystics in the National Basketball Association (NBA), the National Hockey League (NHL) and the Women’s National Basketball Association (WNBA), respectively.
The news followed the NBA approving last November a rule change to allow sovereign wealth funds to acquire minority stakes in teams. An NBA spokesman told The Associated Press that it is reviewing the Qatari investment, per their policy. The NHL has already approved the investment, according to the outlet.
The NBA did not respond to Al-Monitor’s request for an update on the Qatari investment.
All three teams play in the US capital. As a result, some observers view the move as Qatar seeking to gain further influence in the United States.
“I can envision the teams' partial Qatari owners letting prominent politicians, officials, lobbyists, business leaders and their kids from DC and along the northeast corridor meet basketball and hockey stars, hosting the fans in their luxury suites at games and then discussing, by the by, the latest weapons order from the US, bilateral energy deals, visas on arrival for Qatari nationals and any other number of desires,” Justin D. Martin, an associate professor of journalism at the Doha Institute for Graduate Studies, told Al-Monitor. “And it will probably work.”
“It's a clever strategy on Qatar's part,” he added. “Qatar's beltway shopping spree likely supports military and government ties.”
Martin is not alone in this assessment. In an interview with NBC News on June 23, Rep. Colin Allred (D-Texas), who notably used to play in the National Football League, called Qatar's pending purchase of minority stakes in the three Washington teams “an extremely high-profile form of lobbying.”
If Qatar’s bid is approved, it could help the Gulf gain more of a foothold in US sports. In an interview with Al-Monitor in June, former professional baseball executive David Samson notably predicted the Wizards would be among the NBA teams to accept sovereign wealth fund investment. Samson pointed to owner Ted Leonsis' recent purchase of NBC Sports Washington, arguing that the businessman could use a cash infusion as a result.
Marty Conway, a professor of sports management at Georgetown University, tweeted on June 22 that the pending Qatar deal to buy the Wizards is an example of foreign direct investment moving from the East to the West, as opposed to the other way around in the past.
“If you're not comfortable w/the investment trail being East-to-West, well, get over it,” he said on the social media platform.
Money from Qatar and the Gulf is already all over association football (soccer) in Europe. Qatar Sports Investments bought a majority stake in Paris Saint-Germain in 2011. Qatar Airways also sponsored Bayern Munich in Germany for several years, though the club announced in June that it is ending the partnership amid protests from fans. Qatari royal Sheikh Hamad bin Jassim bin Jaber Al Thani is now seeking to buy Manchester United. In 2021, the Saudi Public Investment Fund acquired Newcastle United in the English Premier League. Emirates airlines sponsors Arsenal FC in the same league.
Qatar’s bid to buy a stake in Monumental Sports follows a major move by Saudi Arabia into US sports. In June, the Saudi Public Investment Fund’s LIV Golf league announced a merger with the US-based PGA Tour.
Saudi Arabia is investing more in sports as part of its efforts to diversify economically and reduce dependence on oil. The kingdom has been linked to the 2030 World Cup, following Qatar’s World Cup last year. Several international soccer stars have signed with Saudi Pro League in recent months, including Chelsea's N’Golo Kante most recently. Saudi Arabia is also in talks to host men and women's professional tennis tournaments.
Qatar’s attempt to purchase a stake in the Washington sports teams is already being criticized. A June 24 op-ed in The Washington Post accused Qatar of “sportswashing” with the purchase.
“It’s following a troubling pattern set in motion by LIV Golf and FIFA with the 2022 World Cup,” wrote Candace Bruckner. “It’s the same game plan, and it knows that over time, we will just stop caring.”
Qatar also received heavy international scrutiny in the lead-up to its hosting of the FIFA World Cup last year. The criticism largely focused on the treatment of migrant workers in the country, but also on the treatment of LGBTQ people in Qatar, among other things.
LIV Golf has also been heavily criticized in the United States due to Saudi Arabia’s human rights record and, to a lesser extent, the Saudi government’s alleged connection to the September 11 attacks. Moreover, the US Justice Department is investigating the LIV Golf-PGA Tour merger for potential antitrust violations. Sen. Richard Blumenthal (D-Conn.) is also investigating the deal, and Rep. John Garamendi introduced a bill to strip the PGA Tour of its tax-exempt status in response.
Qatar’s pending deal with Monumental Sports & Entertainment has yet to face such a backlash, though this could change as the deal progresses.
