Qatar, China and the Geo-Economics of Football Club Ownership
The recent developments in the football world, Neymar's transfer to Qatar-funded PSG in Paris and the emigration of football talent to Chinese football league, only highlight the rise of non-Western financial power in the global economy and in entertainment and sports. Incredible sums of 'new money' have entered the sport since Roman Abramovich took over Chelsea F.C in June 2003. One could see this as a natural development considering the rise of new financial centres, economies and powerful persons around the globe as well as the growing dominance of association football in the sporting and commercial spheres in the 21st century.
The developments around football club ownership deserve a closer discussion in policy, finance and academia. Is the continuing interest around involvement in the sport solely a financial affair, or are there political goals to be obtained as well? Consider the importance of media network around A.C Milan in Italy. Some would argue that the network also extend to the political world, and it was a key element in Silvio Berlusconi's election campaign in the 1990s. Should the Italian public be concerned that the same network is now controlled by Chinese investors who also have close connection with the Chinese state? China, after all, is the prime utiliser of geo-economics in the 21st century, a theory in the geopolitical world in which state actors use economic instruments such as foreign direct investments, strategic asset-seeking investment and energy among other resources in order to drive political interests. Chinese investment in Greek ports is not solely financial but also geo-economic and geopolitical in nature as the investment is founded upon the intent to drive Chinese political interests in foreign territories.
'New money' from China, Qatar or Russia is a curious case in world football and politics. The ownership of Chelsea FC is less interesting as Mr. Abramovich's ties to the Russian political life are vague to say to least, and therefore not directly linked to state affairs. However, Qatar's involvement in PSG is directly related to the state-driven political interests as the Oryx Qatar Sports Investment Fund, which owns PSG, has powers directly linked to state politics. Some would argue that the ownership behind PSG is also linked to the World Cup of 2022, that was handed to Qatar shortly after Oryx Qatar Sports Investment took over the Parisian football club. Several questions over corruption, bribery and money-laundering have been raised over the World Cup since Qatari state acquired the rights to host the tournament in December 2010.
Is the acquisition of Neymar, one of the most marketable sportsmen on the planet, and to larger extent the World Cup and involvement in association football, a political tool for the Qatari state? Often, football is seen as powerful vehicle for channeling soft power of a state or a region. China is beginning to funnel its vast savings to sports in athletics, gymnastics, basketball or football, for the benefit of the Chinese state. The United States is often seen as the primary innovator in the 'entertainment sphere' with the proliferation of Hollywood or sports during the Cold War, to reassure the world that their way of life is superior among all other global civilizations.
Should Qatar, China or Russia be successful in their attempt to use the commercially most powerful sport on the planet for state marketing purposes, we can expect them to gain leverages in political, diplomatic and economics spheres as well. The rising economic powers are only starting to discover the power behind the entertainment and sports industries, and new entries to other sports is highly likely. It would be naïve to envision that non-Western investments in the West are solely for financial purposes. For example sports, after all, is never de-coupled from politics entirely when massive sums of money are involved.
In case you are interested in 'smart power,' the combination of soft (persuasion) and hard (coercion) power, I would recommend to take a look at Joseph Nye's work in the field who has been identified as one of the leaders in research related to these concepts.