The Esports World Cup is the largest spectacle that the competitive gaming world has ever witnessed. Held in Riyadh, Saudi Arabia, it’s seven weeks of games, months of qualifiers, and takes up a full quarter of the esports calendar every single year. Funded by a grant from the Public Investment Fund, the sovereign wealth fund of Saudi Arabia, the event is organized and operated by the Saudi-owned Savvy Games Group subsidiary, the ESL FACEIT Group (EFG).
Heralded by some as the end of the ‘Esports Winter,’ the massive investment has certainly injected large amounts of capital into the scene. Its prize pools have been some of the largest of the year, and it’s given work to literally thousands in the esports industry, both on-site in Riyadh, and around the world remotely.
So then, should we be concerned when headlines about other major PIF-backed projects having financial issues start hitting the news?
Image source: Esports World Cup
Saudi Arabia’s huge push to diversify its wealth has seen it invest across the board. From its ambitious Vision 2030 project, to promoting tourism, mining, agriculture, and perhaps crucially for our purposes, gaming and technology. As part of Vision 2030, the country has invested heavily in projects like Neom, a technology-filled megacity.
But recently, headlines have emerged stating that Neom and other projects are under financial review. Auditors have been called in, and it looks like Saudi Arabia is tightening its purse strings.
Issues with Neom date back as far as April, where economic reviews from a new acting chief were first brought to light. By March, the project was being called a financial disaster, and just recently $8 billion was cut from the value by the PIF, Saudi Arabia’s sovereign wealth fund. It’s not the only megaproject facing cut backs. The Line, the huge planned linear skyscraper city in the desert is also facing downscaling.
Image source: Esports World Cup
The reasoning behind many of these cuts are numerous, but key points include spiraling budgets, issues with securing capital from outside investors, and overall skepticism about whether these projects are even feasible at all. There’s also concerns about the green credentials of these projects, and, of course, oil prices.
Saudi Arabia is still largely anchored financially to oil, and the relatively low price at the moment hurts the country and its sovereign wealth fund. Some analysts have suggested that the country needs prices above $90 a barrel, and close to $100 or more to balance its books. That’s difficult with a bullish Donald Trump government in the US, Russian shadow fleets, and the discovery of huge new oil reserves in Europe. The Saudi Arabian government has attempted to spur prices by slashing oil production, but as a result, has run a budget deficit since 2022.
All of this means that the exorbitant spending, especially on ambitious construction projects including Neom, Qiddiya, The Line, and other projects like the Esports World Cup, could be cut to subsistence levels.
Neom has had a somewhat tenuous and unfortunately link to esports, beginning all the way back in 2020 when the fledgling city project became partnered with the LEC, the European League of Legends competitive structure. This deal caused massive backlash that eventually led to the withdrawal of the partnership. Fast forward to today, and Riot Games and LEC teams compete directly in the Esports World Cup in Riyadh, Saudi Arabia.
But as for recent links, the primary connection between the Esports World Cup and Neom is the PIF. The EWC relies heavily on a grant from the PIF for its operation, while Neom is one of the fund’s many projects. And any belt-tightening from the PIF could doubtless affect the EWC.
What’s worse, the signs of these cost cutting measures are already there. As first reported by Richard Lewis on July 28, ESL FACEIT Group, the organizers of the EWC are already facing layoffs. The company was hit by several rounds in 2023 and 2024, and that trend has continued this year. Many of those who were let go in the past two years were later re-hired as outside contractors, and a similar offer has been made to those laid off in 2025.
Image source: Esports World Cup
These layoffs come as there’s renewed pressure across the board to make the EWC organizer, EFG, profitable, even if it is just on the balance sheets. That’s where these layoffs come in. On a balance sheet, the variable costs of contractors (month to month, not included in projections for next quarter, etc.) is far preferable to the fixed costs of employees. This translates into a lot less job security for EFG workers, but given some sources called 2026 “make or break” for the company, drastic measures are needed. It’s worth noting that some reports have claimed that ESL has never been profitable during its entire existence, although this claim is disputed and unverified.
The answer to the question of where these pressures to be profitable come from is simple: They’re from the owners of EFG, Savvy Gaming Group. That company, which is part of the PIF, is now likely under orders to cut costs. Just like every other huge project is on the PIF books.
Ultimately, the Esports World Cup seems ripe for trimming. In many ways, it’s served its purpose. In just five years, much of the esports community has gone from decrying Saudi involvement to working alongside the KSA. The EWC has proved the country can cater to huge events, and will host the 2034 FIFA World Cup. Reports also indicate Saudi Arabia will also likely bid for the Olympics in 2040. And so if any event is on the chopping block, it could be the EWC.
A deficit since 2022 and the low price of oil are driving a reduction in investment in construction and large scale projects.
The Esports World Cup is organized by ESL FACEIT Group, a subsidiary of the Savvy Games Group, which is owned by the Saudi Arabian Public Investment Fund, and the EWC also receives a large grant from the same fund.
There has been no confirmation or announcement of a 2026 Esports World Cup at the time of writing.
