Savvy Gaming Group, owned by the Saudi Arabian Public Investment Fund (PIF) just pumped a lot of money into esports with a €247 million ($265 million) agreement between them and VSPO.
It’s a big stepping stone for Sauid Arabia, their big plan called Vision 2030 is taking shape as they ramp up their investments. By teaming up with VSPO, they have reached another milestone on becoming one of the leaders on the global gaming market. Combining Chinese reach (the biggest esports market) with their ambitions to host more events and be a center for esports. The investment is also quite critical, as many believe the money from Saudi Arabia is meant to greenwash the country’s human rights issues, including the 2018 murder of journalist Jamal Khashoggi.
Savvy makes massive investment in VSPO
VSPO (formerly VSPN) manages multiple teams and individual players and acts as an esports agency. The acquisition makes Savvy VSPO’s largest shareholder. Saudi Arabia thinks that esports will eventually be 1% of the countries total revenue, which would be huge! The King of Saudi Arabia Prince Faisal bin Bandar bin Sultan Al Saud said the following:
“We see a thriving global esports sector with a vibrant, talented and dynamic community at its core. We appreciate the immense opportunities for this industry, especially here in the Kingdom of Saudi Arabia with such a young population of around 23 million enthusiasts,” he is also the Chairman of the Savvy Games Group
A HISTORY MAKING DEAL: VSPO has signed a deal to receive the largest direct investment in industry history: $265 million from Savvy Games Group, a wholly owned subsidiary of Saudi Arabia’s Public Investment Fund. pic.twitter.com/IkmNTrBdjd
— VSPO (@vspoesports) February 16, 2023
“This investment is part of the ambitious plan that will enable and support the esports ecosystem in Saudi Arabia. Attracting international companies to Saudi Arabia through investment and partnerships will help provide skills, transfer knowledge and strengthen the entire ecosystem.”
Saudi Arabia wants to break into esports
The Saudis made headlines by trying to bring the LEC into their “Esports City” NEOM, which ultimately failed due to negative community feedback, the same goes for other tournaments that should have happened in NEOM. Saudi Arabia also invested about $3 billion in U.S. gaming companies such as Activision Blizzard and holds a 3% stake of Nintendo The capital, Riyadh, will also host the Global Esports Games this December. “This is an exciting time for the global Esports industry, and we are pleased to be working with Savvy to grow the sector globally,” said Dino Ying, managing director of VSPO.
“We are convinced that we can take this industry to the next level and realize our shared vision: Bringing communities together through esports. “This historic investment will strengthen our ambitious global strategy, with a particular focus on Asia and the Middle East, where we will support Savvy’s vision to grow esports in this incredibly dynamic and young region.”