The cat is out of the bag on Saudi Arabia’s talks with Real Madrid, and the question now turns to whether the unwanted attention will scuttle the deal.

The reigning La Liga champions have discussed a $182 million partnership that would make the Saudi state-owned Qiddiya project the lead sponsor of Real Madrid’s women’s team for a decade, according to leaked documents seen by The Times.

The deal would also require at least four players from the men’s first team to promote Qiddiya.

• Qiddiya, which broke ground in 2019 on a massive construction project near Riyadh, is a sports, arts, and entertainment mega-complex slated to open in 2023. 
• The project is part of Saudi Arabia’s 2030 Plan, which aims to diversify the revenue of the world’s second-biggest oil producer as global concern over climate change threatens its primary source of income.
• The country’s $400 billion sovereign wealth fund has been pouring assets into U.S. markets, including a recent $3.3 billion worth of investments in major video game companies. 

The now-exposed talks are likely to stir controversy. Saudi Arabia’s sovereign wealth fund withdrew its bid to acquire Newcastle United of England’s Premier League last summer after human rights groups objected to the country’s potential involvement.

Neither Saudi Arabian officials nor Real Madrid have acknowledged the talks, perhaps hoping to stave off the attention that thwarted the country’s last attempt at investing in European soccer.

In 2006, Cristal executive Louis Roederer voiced his displeasure over the hip-hop community’s association with the high-end champagne brand.

“We can’t forbid people from buying it,” Roederer told The Economist. “I’m sure Dom Pérignon or Krug would be delighted to have their business.”

Jay-Z, who had been instrumental in the popularity of Cristal among hip-hop fans, took offense. “I view his comments as racist and will no longer support any of his products through any of my various brands, including the 40/40 Club, nor in my personal life,” said the rapper and mogul.

He took his business to Armand de Brignac, which makes Ace of Spades champagne, buying 50% of the company in 2006 and the other half in 2014.

Now, Moët Hennessy Louis Vuitton, or LVMH, has purchased 50% of Armand de Brignac. The deal could facilitate cross-pollination in the sports world, in which both sides are deeply involved.

• LVMH-owned Spanish fashion house Loewe sponsors captain of the World Cup-winning U.S. Women’s Soccer Team, Megan Rapinoe. Hennessy became an NBA sponsor in February 2020.
• Other LVMH subsidiaries take part in athletics, too. Dior released a Nike Jordan sneaker last summer, Tag Heuer sponsors Porsche racing and athletes like Naomi Osaka and golfer Tommy Fleetwood, and champagne line Veuve Clicquot sponsors the Polo Classic.
• Louis Vuitton turned heads in 2019 by partnering with Riot Games, sponsoring its League of Legends Championship and producing a brand line based on the game.
• Jay-Z’s Roc Nation Sports represents Kyrie Irving, Leonard Fournette, Marcus Rashford, and many other athletes. The company also has an ongoing partnership with the NFL for entertainment and social justice initiatives.

Though Jay-Z is no longer a co-owner of the Brooklyn Nets, should the team’s Big 3 win the NBA Finals, they will receive the Larry O’Brien trophy in a case designed by Louis Vuitton as part of a multiyear partnership with the NBA.

“Just the idea of this partnership is a signal to a more diverse way of looking at things,” Jay-Z told The New York Times regarding his new agreement with the French luxury brand conglomerate.

If you want to cash in on sports collectibles without the labor of searching for unique mementos, meet Joel Platt.

The 82-year-old’s collection of sports memorabilia items — all locked in a high-security vault in Florida — has gone public.

After opening the Sports Immortals Museum in 1995, Platt is now selling shares of his collection through IPOs for individual items on collectable.com.

“The IPO sold out, but shares have begun trading at prices based on investor demand, via a secondary market [on the site] — similar to that of Wall Street,” said Ezra Levine, CEO of Collectable. “It’s one way for investors to realize profits.”

Platt sourced his collection of more than one million items by creating relationships with sports moguls, traveling the world, and understanding which mementos will carry value.

He started collecting when he was four years old. His parents got him a Babe Ruth baseball card when he was bedridden after suffering injuries from a gasoline explosion.

Platt’s collection includes:

• Michael Jordan’s 1984 game-used rookie jersey, valued at $242,000. The IPO sold out in under 15 minutes.
• Muhammad Ali’s “Rumble in the Jungle” championship belt, valued at $428,000. The IPO sold out in 24 hours.
• A signed Wilt Chamberlain high school jersey from 1954, valued at $316,000. The IPO sold out in 15 minutes.

While Platt’s entire collection is not yet on Collectable, he plans to add new pieces soon.

As sports betting surges, operators are working to establish long-term relationships. 

On Tuesday, Penn National Gaming Inc. announced a strategic partnership with Capital Region Gaming allowing the Pennsylvania-based gaming company to operate in New York once state lawmakers approve mobile sports wagering. 

The deal lasts for 20 years. Capital Region operates Rivers Casino & Resort in Schenectady, New York, giving Penn National an immediate home. 

“Gaining potential access to what could become one of the nation’s most lucrative sports betting markets has been a major priority for our company,” said Jon Kaplowitz, Penn National’s senior vice president of interactive gaming.

But Penn National isn’t the only sports betting operator getting in on the action early and establishing a long-term foothold across the U.S.

• On Monday, Rush Street Interactive, Inc. announced that it will offer its online casino and sports betting platform, BetRivers.com, for up to 20 years in Ohio, Maryland, and Missouri. 
• RSI currently operates in eight states with a combined population of over 68 million. With the addition of Ohio, Maryland, and Missouri, RSI could reach more than 35% of the U.S. population.
• This past September, Flutter Entertainment and Scientific Games agreed to a five-year extension after first partnering in 2000.
• In 2019, PointsBet agreed to a 20-year partnership with Hawthorne Race Course in Illinois.

Everyone in the gaming industry will be locked up in contracts until 2040 before we know it.