SURJ Sports Investments, the sports arm of Saudi Arabia’s Public Investment Fund (PIF) sovereign wealth investment vehicle, has finalized a major investment into international sports-focus streaming service DAZN.
Reported to be worth $1 billion in exchange for a 10% stake in the business, SURJ’s investment will see the creation of a media joint venture, DAZN MENA, centered around the Middle East and North Africa (MENA) region.
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The joint venture will be an “official streaming and broadcast partner” for Saudi sports events broadcast both live and on-demand.
Speaking on the announcement, SURJ Sports Investment chief executive Danny Townsend stated: “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.
“This investment will help SURJ achieve its mandate of driving fan engagement, encouraging sports participation and unlocking game-changing opportunities, and further showcasing the region as a destination for world-class sports.”
Shay Segev, DAZN chief executive, added: “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.
“This is a milestone partnership for the group, which is bound to transform the sports entertainment landscape in Saudi Arabia and the wider region.”
Rumors had been circling regarding the PIF’s interest in DAZN since October 2024 – although that same month the PIF publicly stated it had no interest in DAZN.
DAZN has a good relationship with authorities in the Kingdom and in October 2024 agreed a major multi-year broadcast partnership with the Riyadh Season brand of sporting and entertainment events from the Saudi capital, becoming the exclusive global broadcaster of its events (excluding the Middle East and North Africa).
The broadcaster is also a significant rights-holder for the Saudi Pro League soccer competition, while earlier this year it provided coverage of the Esports World Cup from Riyadh, as well.
In addition, the ties between the country and DAZN were strengthened in September when the streaming platform announced the signing of a memorandum of understanding (MoU) with Saudi Arabian soccer side Al-Hilal for the establishment of a new global channel – backed by Riyadh Season – on the service.
This partnership was much needed for DAZN, which in the calendar year 2023 posted yet another hefty loss despite the continued investment of owner Len Blavatnik.
Over that year DAZN posted a pre-tax loss of $1.43 billion (up from the loss of $1.2 billion in 2022) despite a growth in revenue year-on-year from $2.19 billion to $2.86 billion.
DAZN’s user base grew in the year, as did its paid subscription tier, but that was still not enough to offset its operational costs, mostly composed of spiraling accumulated rights fees.
Rights costs for DAZN in 2023 amounted to $3.1 billion, up by 32% ($757 million) on the $2.4 billion it paid across 2022.
The service still has $9.4 billion in sports rights fees it has committed to pay across the coming years, and will likely still add more as it looks to compete with the likes of Amazon Prime Video and new sports rights entrant Netflix.
Its struggle, however, is competing against diversified media businesses that offer entertainment such as film and TV along with other benefits alongside their sports programming whereas DAZN, solely sports-focused with a heavy priority in boxing (globally) and soccer (in certain markets), charges a similar if not larger fee for what is a less expansive offering.
