[Must Read] A power-packed edition featuring MSKhan Lab's first on-the-ground report and KSA's esports and gaming strategy

Top of Mind

[Exclusive On-the-Ground Report] Saudi Pro League (SPL) Club Football Kits in the United Arab Emirates (UAE)

• The SPL’s “Big Four” football clubs are Al-Ahli, Al-Hilal, Al-Ittihad, and Al-Nassr.

• Each of the “Big Four” football clubs is “privatized” and majority owned by the Public Investment Fund (PIF).¹

• MSKhan Lab visited Dubai Mall, the world’s largest mall (by land area),² in Dubai (UAE) to buy a “Big Four” football jersey.

Adidas and Nike stores in Dubai Mall

• Al-Ahli and Al-Nassr →

  • Adidas is the Kit Supplier of Al-Ahli.

  • In April 2023, Al-Ahli signed a 3-year agreement with Adidas.³

  • Nike is the Kit Supplier of Al-Nassr.

    

    Source [X (formerly Twitter)]: Al-Nassr

  • The 2023/24 Al-Ahli and Al-Nassr kits are not available at the Adidas and Nike stores respectively. According to the staff at respective stores, the kits have not yet launched in UAE, even though the 2023/24 SPL season kicked-off on August 11, 2023.

  • Why are the kits not available in UAE, given the agreements were signed long before the start of the 2023/24 SPL season?

  • “Supply chain disruption amid Covid-19 pandemic” is not a valid excuse, given the World Health Organization (WHO) has declared an end to Covid-19 as a public health emergency⁴ and the kits of other football clubs such as Real Madrid CF and Paris Saint-Germain (PSG) are available in UAE.

    

    The PSG collection at the Nike store in Dubai Mall

  • Cristiano Ronaldo is a “Nike Athlete”.⁵ Why is his football club’s kit not available at the largest Nike store in the Middle East region?⁶

    

    Current situation

• Al-Ittihad →

  • Nike is the Kit Supplier of Al-Ittihad.

    

    Source (Instagram): Al-Ittihad

  • The 2023/24 Al-Ittihad kit has sold out in just one month!

  • No updates yet on re-stock.

• Al-Hilal →

  • Puma is the Kit Supplier of Al-Hilal.

    

    Source [X (formerly Twitter)]: Al-Hilal

  • The 2023/24 Al-Hilal kit is available at the Puma store.

    

    2023/24 Al-Hilal Away Kit at the Puma store in Dubai Mall

  • Recommended Retail Price (RRP) of the 2023/24 Al-Hilal Football Jersey = AED 395 (USD 107.5)

  • The 2023/24 Al-Hilal football jersey is also available at the Puma online store.

    • Home Jersey – Al Hilal 23/24 Home Replica Football Jersey Men

    • Away Jersey – Al Hilal 23/24 Away Replica Football Jersey Men

    • Third Jersey – Al Hilal Third 23/24 Replica Football Jersey Men

  • Al-Hilal’s kit is the only “Big Four” kit available online in UAE.⁷

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[ICC Men’s Cricket World Cup 2023 Special]

The gentleman’s game at the Adidas store in Dubai Mall

• Price of India Cricket ODI Jersey Men →

  • India = INR 4,999 || USD 59.9 || EUR 56.7 || GBP 49.4 || AED 220.1

  • Germany = EUR 75 || USD 79.4 || GBP 65.4 || AED 291.4 || INR 6,618.6

  • UAE = AED 279 || USD 76 || EUR 71.8 || GBP 62.6 || INR 6,336

  • United Kingdom (UK) = GBP 65 || USD 78.8 || EUR 74.5 || AED 289.6 || INR 6,575.7

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The Footballco Future of Fandom Report

• Thank you, Andy Jackson, for sharing Footballco’s “Future of Fandom” report.

• Key findings of the report:

  • The Middle East sports market is expected to grow faster than anywhere in the world over the next three to five years.

  • 38% of Gen Z (Age = 16 - 24) football fans in KSA are more interested in following specific football players than football teams.

  • Gen Z from growing football markets (KSA and USA) with less heritage than established football markets are more likely to switch their football teams, should their favorite football star leave.

  • Gen Z are in fact following more football teams overall in less established football markets (KSA and USA), showing that heritage catalyses loyalty.

• The findings of the report justify the “superstar-acquisition” model⁸ adopted by SPL, given 63% of the KSA population is under the age of 30.⁹

  • 2023/24 SPL Attendance

    • Matchweek 11

      • Al-Hilal vs Al-Ahli = 50,986

      • Damac vs Al-Okhdood/Al-Akhdoud = 1,614

• In an off-the-record chat with a “Big Four (USA)” sport executive based in New York, we mutually agreed that in the digital age, sports consumption is increasingly player-driven.

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Sports Betting in KSA?!

• Yes, you read that right. Do not rub your eyes!

• According to an Ernst & Young (EY) (2021) report titled “The sports event opportunity in the Kingdom of Saudi Arabia”, KSA should allow sports betting to improve fan experience.

Source: EY

Source: EY

“Betting is prohibited.” – The Embassy of KSA in Washington, DC (2023)

• The official religion of KSA is Islam.¹⁰

• The judicial system of KSA is based on Islamic law.¹¹

• Islam prohibits betting.

• Did the “contributors” of the report have access to the above information before publishing the report? Were they aware of betting in KSA? Were EY’s staff based in KSA involved in the creation of the report?

• Is sports betting absolutely necessary to improve fan experience in KSA?

• How can a management consulting firm override the rule of law and propose a recommendation?

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KSA’s Esports and Gaming Strategy

• The goals and key performance indicators (KPIs) of the National Gaming and Esports Strategy (NGES, KSA) →

Source: NGES

• KSA is on track to achieve the fourth goal and KPI, given the launch of the Esports World Cup and past editions of Gamers8.

• Why has KSA not introduced an esports and gaming visa?

  • The visa will enable KSA to achieve all the goals and KPIs of NGES.

  • Case Study (Germany): Esports Visa

• Let us assume that KSA achieves the third goal and KPI.

  • Does KSA have an action plan to prevent overtraining, burnout, and career-ending injuries¹² in professional esports players?

  • Does KSA have an Esports Players Association (EPA) to combat exploitation¹³ of professional esports players?

  • The average competitive career of a professional esports player lasts four to five years.¹⁴

  • The average retirement age of a professional esports player is 25.¹⁵

  • What are the career opportunities available for former professional esports players in KSA?

  • What happens to amateur esports players who are not “good enough” to turn professional?

    • Case study (Youth football players in UK):

      • Being released from a football academy takes a serious toll on young players – new research

      • All clubs urged to give three-year support to released youngsters

      • Youth football: What happens to those who don't 'make it'?

      • Exclusive: 'Disturbing' findings of ITV News survey of young footballers released by clubs

      • ‘Football’s biggest issue’: the struggle facing boys rejected by academies

• The first and second goals and KPIs are inextricably linked.

“Challenges facing local game companies include access to funding, access to local talent, high cost of living, and attracting international talent.”

“Only two companies hold a ‘game studio license’ from General Commission for Audiovisual Media (GCAM).”

– Nine66’s Game Developers in Saudi Arabia Report (2022)

• How will it be possible to measure the achievement of the first goal and KPI if gaming companies do not acquire a relevant license?

• Investment in the education sector is vital to develop local esports and gaming talent.

  • Case Study [United States of America (USA)]:

    • United States Academic Esports

    • United States Army eSports Team

      • How the US Army uses video games to attract Gen Z

      • Military Esports: How Gaming Is Changing Recruitment & Morale

  • Case Study (Japan):

    • Esports High School

    • Esports Gym

    • Japanese construction firms hoping to attract talent from eSports to operate machinery

  • Case Study (UK):

    • Esports University Degrees

    • Careers in Esports

  • Case Study (South Korea):

    • GEN.G Global Academy

• KSA has an opportunity to take the lead and create a formal and structured pathway for talented esports players and coaches in the world, similar to Premier League’s Elite Player Performance Plan (EPPP) for talented youth football players.

• KSA must fund research by homegrown (GCC) scholars and establish advisory councils to further develop the local esports and gaming ecosystem.

• Further Insights:

  • Wadih Al Sayah on LinkedIn

    • Game Servers in the MENA region

    • Talent Acquisition in the MENA region

  • Amazon University Esports UAE

  • Saudi Seasons cannibalising revenue from non-season period

• Notable Mentions in KSA’s Burgeoning Esports and Gaming Industry:

  • University GameDev League 2022

  • Saudi Esports Academy

  • Saudi E-Leagues

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Brand Spotlight: First Abu Dhabi Bank (FAB)

• FAB is the largest bank in UAE.¹⁶

• It has the strongest combined credit rating (AA-) in the Middle East and North Africa (MENA) region.¹⁷

• FAB’s Sports Sponsorship Portfolio:

  • Football

    • Al-Ahly

    • Al-Ain

    • Manchester City

  • Cycling

    • UAE Team Emirates

  • Jiu-Jitsu

    • UAE Jiu-Jitsu Federation (UAEJJF)

    • Abu Dhabi Jiu-Jitsu Pro (AJP) Tour Africa and Egypt Jiu-Jitsu Championships 2023

  • Motorsport (Athlete)

    • Rashid Al Dhaheri

  • Events

    • Spartan Abu Dhabi World Championship 2022

    • Gov Games 2023

  • Special Olympics UAE

LinkedIn Update

• “Nurturing Sustainable Prosperity through Innovative Methods in the Arabian Gulf.”

Recommended Reading

LIV Golf

“Anyway, McKinsey participates with us (KSA) in many studies.” – The Economist (2016)

“A joke among Riyadh businessmen is that Saudi Arabia’s Ministry of Planning has become the Ministry of McKinsey.” – Financial Times (FT) (2016)

• New York Times (NYT)

  • Confidential Records Show a Saudi Golf Tour Built on Far-Fetched Assumptions

  • The World of LIV Golf

  • What is LIV Golf? It Depends Whom You Ask.

PSG

• Harvard Business School (HBS) Case

  • Paris Saint-Germain: Building One of the World's Top Sports Brands

Sports League Highlights

• Sportico

  • Sports Leagues Only Partially Monetize Highlights. That May Soon Change

1. Reference (The National): PIF takes control of Al Hilal, Al Nassr, Al Ittihad and Al Ahli in Saudi Pro League

2. Source (Insider): I spent 8 hours in the world's biggest mall in Dubai. It's like an indoor city and has everything — an aquarium, an ice rink, and a Cheesecake Factory.

3. Source (Arriyadiyah): (Link)

4. Source (WHO): WHO chief declares end to COVID-19 as a global health emergency

5. Source (Nike): Athletes: Europe

6. Reference (Gulf Business): Pictures: Largest Nike store in the Middle East opens in Dubai Mall

7. MSKhan Lab Analysis

8. Reference [Harvard Business School (HBS)]: Investing in Superstars: Lessons from the World of Football

9. Source (Reuters): Saudi population at 32.2 million, 63% of Saudis under 30 years old, census shows

10. Reference (The Embassy of KSA in Washington, DC): Islam

11. Source (The Embassy of KSA in Washington, DC): Legal and Judicial Structure

12. Reference (The Washington Post): Esports stars have shorter careers than NFL players. Here’s why.

Reference (Quartz): Why do so many esports players retire before they’re 25?

13. Reference (The Washington Post): Inside ‘contract hell’: Esports players say predatory contracts run ‘rampant’

14. Reference (The Hollywood Reporter): Gamers’ Plight: Why So Many Esports Players Retire by 25 — and What Comes Next

15. Source (Nikkei Asia): Life after esports: What happens when pro gamers hang up the joystick?

16. Source (FAB): Investor Presentation

17. Source (FAB): Investor Presentation