In an unexpected twist, it appears that the Saudi connection may be the stumbling block for a highly controversial merger that had previously raised concerns about its approval by US regulators. Earlier this year, On The Money had reported that the ties of former President Donald Trump to the deal could jeopardize its chances of gaining approval in the United States. However, insiders are now suggesting that Saudi Arabia’s involvement could be the catalyst for derailing this high-profile merger.

The Saudi Arabian Public Investment Fund (PIF) has emerged as a major player in the sports industry, having invested a staggering $2 billion over the past two years to launch LIV, a venture aimed at luring top-notch athletes with lucrative financial packages. Notably, golf sensation Phil Mickelson was among those swayed by the allure of Saudi riches.

The deal

Adding to the intrigue, Saudi Arabia’s Crown Prince, Mohammad bin Salman, raised eyebrows during an interview with Fox News last month when he openly admitted that the proposed merger could result in a monopoly. This statement drew the attention of regulators, potentially triggering concerns about antitrust implications.

Simultaneously, Wall Street has been abuzz with speculations that the frosty atmosphere may have already had a negative impact on another major sports deal. Observers point to the stalled negotiations involving the sale of a stake in the renowned football club, Manchester United.

Prior to a critical event on October 7th, reports had indicated that a Qatari investment group was remarkably confident about securing the UK soccer team and was even prepared to increase its offer from $6 billion to $6.5 billion. This unexpected setback has raised questions about the broader implications of the evolving dynamics in the world of sports mergers and acquisitions.

As the fate of the controversial merger hangs in the balance, all eyes remain on the role of Saudi Arabia and its burgeoning influence in the sports industry. The intersection of politics, finance, and sports has created a web of complexities that will undoubtedly continue to captivate observers and regulators alike in the coming months.