Under New Management?: Sovereign Wealth Funds and Their Ownership of U.S. Sports Teams

Authors

Benjamin K. Moyer

Abstract

In October 2021, Saudi Arabia’s sovereign wealth fund (“SWF”) successfully purchased the English Premier League soccer team Newcastle United F.C. for $400 million. With this transaction, Saudi Arabia joined fellow Gulf countries, Qatar and the United Arab Emirates, in owning a major European soccer team through one of its state’s SWF. States have long used their SWFs to invest in foreign markets, but recent trends have transformed these originally strictly financial vehicles into political tools. Since the 2007–2008 financial crisis, many states have used their SWFs not only to produce financial gains but also to generate soft power through political and social influence. For example, for the past five years, Saudi Arabia’s SWF has invested billions of dollars into the global sports industry.

While SWFs have yet to fully enter the U.S. sports industry, many predict that it will only be a matter of time before teams in the United States attempt to dip into these enormous sources of capital. However, teams in the United States are not just financial instruments but are seen by many as cultural institutions. Would the United States allow U.S. sports teams to be bought by foreign states? The answer to this question would come from the Committee on Foreign Investment in the United States (CFIUS). Along with the president, this agency has the power and jurisdiction to prohibit foreign transactions they think threaten national security. Therefore, CFIUS could have the power to prohibit future attempts by SWFs to purchase U.S. sports franchises. Regardless of the current legal landscape, this Comment argues that the United States should allow foreign states to purchase U.S. sports teams. Although it would likely make Americans uncomfortable, allowing SWFs to purchase U.S. sports teams would only promote international cooperation and benefit local communities.

Recommended Citation

Benjamin K. Moyer, Under New Management?: Sovereign Wealth Funds and Their Ownership of U.S. Sports Teams, 129 Dick. L. Rev. 751 (2025).
Available at: https://ideas.dickinsonlaw.psu.edu/dlr/vol129/iss2/9