Surj Sports Investment, the sports investment unit of Saudi Arabia’s sovereign wealth fund (PIF), has acquired a minority stake in billionaire Len Blavatnik’s DAZN sports streaming service in an agreement that could radically change the sports content ecosystem in the Middle East.

The long-gestating deal — widely believed to involve PIF paying $1 billion in exchange for 10 per cent of DAZN — gives Saudi Arabia a piece of DAZN, which in the Middle East and North Africa (MENA) region rivals powerhouse beIN Sports, from neighboring Qatar. Qatar, incidentally, hosted the FIFA soccer World Cup in 2022, while Saudi Arabia will be hosting the 2034 edition of that event. 

Founded in 2007, London-based DAZN, which has been dubbed the “Netflix of sports,” is now operating in more than 200 markets, having gone on a systematic sports rights’ buying spree that caused the streamer to report a £1.2 billion ($1.51 billion) loss for 2023. The deal with Surj Sports will certainly help shore up DAZN’s finances.

On the Saudi side, Surj and DAZN are setting up a joint-venture called DAZN MENA “that will unlock new broadcasting opportunities for Saudi Arabia’s growing sports sector,” the companies said in a joint statement. “The partnership aims to strengthen Saudi Arabia as a leading market for sports investments, while capitalizing on the significant growth in demand for high-quality sports broadcasting,” the statement added.

Saudi Arabia has been investing massively in soccer, boxing, and tennis in recent years. DAZN is already the streamer-of-choice for Saudi boxing and soccer. And more is yet to come.

“Surj supports the leadership of DAZN, and our partnership will accelerate the growth of DAZN and capitalize on the significant and growing demand for high-quality sports broadcasting,” said Danny Townsend, CEO at Surj Sports Investment, in the statement.

“This investment will help Surj achieve its mandate of driving fan engagement, encouraging sports participation, unlocking game-changing opportunities, and further showcasing the region as a destination for world-class sports,” the statement went on to add.

Shay Segev, CEO of DAZN commented: “DAZN is the only truly global entertainment platform dedicated to sport, which makes us ideally positioned to expand access to sports content globally from Saudi Arabia’s growing sports sector.”

“As part of the DAZN MENA joint venture with Surj, DAZN is committed to maximizing the reach and accessibility of sports, while delivering the best entertainment experience to a global community of passionate fans,” he added, noting that “This is a milestone partnership for the group, which is bound to transform the sports entertainment landscape in Saudi Arabia and the wider region.”