Insights

Middle East's Sports Growth | Media Consulting | Altman Solon

Written by Altman Solon | March 2024

Altman Solon is the largest global TMT consulting firm with expertise in sports media consulting. Our latest edition of Altman Solon's Global Sports Survey delves deep into an industry that is rapidly transforming. In 2024, we surveyed over 3,000 sports fans located in the U.S., U.K., Germany, Saudi Arabia, and China, and spoke with 220 senior sports executives globally, including rights owners, media

Sports in the Middle East have experienced immense growth, driven by increasingly diverse stakeholders, including royal affiliations, sovereign funds, and state corporations. Investments have ranged from acquiring stakes in and sponsoring international clubs and leagues, as well as hosting major events and developing domestic sports ecosystems. Once driven by members of royal families, sovereign funds now lead the charge, focusing on sustainable local economic growth.

Thanks to the regions' increasing investments in sports ecosystems, a growing cohort of young sports fans in the Middle East has emerged. In contrast to their European and American peers, Generation Z in the Middle East shows higher sports viewership. While these fans show greater interest in international teams and leagues than domestic properties, those who do follow Middle Eastern domestic leagues are more likely to watch live televised games. Investing in local leagues, star signings, and improved fan experiences could help further increase fan engagement with regional teams.

With a solid asset base in place, we believe the Middle East's next phase of sports value creation will focus on optimizing regional assets to match top-tier global benchmarks. In football especially, sovereign funds can achieve this by using team ownership to operate like centralized leagues or multi-club ownership structures, driving efficient value creation through scaling best practices.

The key steps to achieve this include:
  1. Operational optimization: Improve sports (e.g., transfers, local athlete performance) and non-sports (e.g., commercial, business operations) processes of regional sports assets.
  2. Fan centricity: Consider regional specificities to boost fan engagement (e.g., establishing new local competitions, bringing international sports stars, developing community sports), including collecting and analyzing fan data.
  3. Broader value creation strategy: Identify synergies between sports and adjacent assets to maximize sports-related investments, including leisure, tourism, and entertainment (e.g., use sports venues and operating capabilities for hosting live events and festivals).
  4. Strategic implementation: Define goals and KPIs for each initiative; continuously monitor impact and improve accordingly.