Esports Breakup: Why the IOC Backed Out of Saudi Esports Deal

Key insights

4 slides

Deal dissolved

The IOC and Saudi Arabia have terminated their 12-year esports agreement.

The partnership to host and operate the Esports Olympic Games, originally signed in July 2024, has been mutually dissolved.

Key fact. The International Olympic Committee (IOC) and the Saudi Arabian government have officially terminated their partnership to develop an Esports Olympic Games.

Governance issues

Disagreements over democratic processes and organizational autonomy caused friction.

The Saudi government sought to establish a proprietary federation, conflicting with the IOC charter's requirements for democratic structure and stakeholder inclusivity.

Core conflict. Disagreements emerged over the IOC charter's requirement to work with established federations, as the Saudi government sought to bypass existing bodies like the IESF and GEF in favor of creating…

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Summary

The International Olympic Committee (IOC) and the Saudi Arabian government have mutually terminated a 12-year agreement to host and operate the Esports Olympic Games. Originally signed in July 2024 under former IOC President Thomas Bach, the partnership faced significant internal friction following the transition to new IOC President Kirsty Coventry in June 2025. The dissolution marks a major shift in the global esports landscape, as both parties now pursue independent strategies for competitive gaming.

The breakdown of the deal stemmed from fundamental disagreements regarding governance, democratic processes, and organizational autonomy. The Saudi Arabian government sought to establish a proprietary federation to oversee the games, a proposal that conflicted with the IOC charter’s requirements for democratic structure and stakeholder inclusivity. Furthermore, the Saudi contingent reportedly resisted IOC mandates concerning leadership diversity and participation policies for various nations. These tensions were exacerbated by the Saudi government’s long-standing desire to bypass existing organizations like the International Esports Federation and the Global Esports Federation, which they viewed as ineffective.

The collapse of the partnership became increasingly apparent throughout 2025, beginning with the delay of the inaugural event from 2025 to 2027. By August 2025, the Esports World Cup Foundation had pivoted to launching the Esports Nations Cup, a biennial tournament co-developed with major industry publishers including Electronic Arts, Krafton, Tencent, and Ubisoft. This move signaled a shift toward a Saudi-led model that mirrors traditional Olympic structures while maintaining centralized control. The cancellation reflects a broader ideological divide between the IOC’s institutional requirements and the Saudi government’s vision for the future of international esports competition.