Freakonomics Radio Episode 640: Why Governments Are Betting Big on Sports

Release Date: July 11, 2025
Host: Stephen J. Dubner
Guests: Kash Shaikh, Simon Chadwick, Rory Smith, Derek Fisher
Podcast Network: Freakonomics Radio + Stitcher

Introduction: The Intersection of Sports, Economics, and Geopolitics

In Episode 640 of Freakonomics Radio, Stephen Dubner delves into the complex relationship between governments and the world of sports. The episode explores how nations are leveraging sports not just as a form of entertainment, but as strategic tools for economic diversification, soft power, and geopolitical influence. Through insightful interviews with entrepreneurs, academics, journalists, and former athletes, the podcast uncovers the hidden motivations and multifaceted impacts of government investments in sports.

Building Baseball in the Middle East: An Entrepreneurial Venture

Guest: Kash Shaikh, Co-founder, Chairman, and CEO of Baseball United

Kash Shaikh shares his ambitious journey to establish Baseball United, the first professional baseball league focused on the Middle East and South Asia.

• Personal Background and Motivation:
  Born in Texas to parents from Pakistan and India, Shaikh emphasizes his belief in sports as a unifying force amidst cultural and political divisions. His passion for baseball, ignited by childhood experiences and inspired by Hall of Famer Barry Larkin, led him to pursue the creation of Baseball United.

  “Sport is one of the great unifiers of all time in the history of mankind.”
  — Kash Shaikh [50:02]

• Challenges Faced:
  Shaikh discusses the immense hurdles in launching a new league, including government relations, infrastructural developments, and cultural adaptation. He highlights the complexities of securing partnerships with sovereign wealth funds and navigating regulatory landscapes.

  “We built this in the middle of the fricking desert like it was all dust and dirt.”
  — Kash Shaikh [09:21]

• Innovative Approaches:
  To make baseball appealing in a cricket-dominant region, Shaikh introduces unique elements like the "Moneyball" pitch, which allows strategic gameplay twists to engage local fans.

  “Our Moneyball is a gold ball that each manager can call into play three times a game when his team is up to bat.”
  — Kash Shaikh [12:32]

• Future Prospects:
  Despite financial strains and the nascent stage of the league, Shaikh remains optimistic about Baseball United's potential to become a cornerstone of sports in the Middle East.

  “Anything is possible when you're more confident.”
  — Kash Shaikh [55:11]

The Geopolitical Economy of Sport

Guest: Simon Chadwick, Professor of Sport

Simon Chadwick provides a scholarly perspective on how sports serve as instruments for geopolitical strategy and economic policy.

• Historical Evolution:
  Chadwick outlines three eras of professional sports, emphasizing the current phase where nations like China and members of the Gulf Cooperation Council (GCC) are heavily investing in sports infrastructure to diversify their economies and enhance global influence.

  “Sport being deployed as a policy instrument for geopolitical purposes.”
  — Simon Chadwick [22:39]

• Case Studies:
  He examines China's construction of stadiums in Africa and the GCC's investment in global sports franchises, illustrating how these moves extend beyond mere economic investment to strategic dominance.

  “They're using sport for nation building, nation branding, soft power diplomacy.”
  — Simon Chadwick [24:41]

• Implications:
  Chadwick warns of the complexities and ethical considerations, such as "sport washing," where countries with questionable human rights records use sports to improve their global image.

  “It's not straightforward. It is complex. There are multiple motives underpinning what they're doing.”
  — Simon Chadwick [25:54]

Foreign Ownership and Its Impact on Local Sports

Guest: Rory Smith, Soccer Reporter for The Observer

Rory Smith explores the effects of foreign, particularly Gulf state, ownership of European soccer clubs, focusing on the case of Manchester City.

• Transformation of Clubs:
  Smith traces the transformation of Manchester City from a traditionally UK-owned club to one under the ownership of Abu Dhabi United, highlighting the influx of capital and the subsequent on-field success.

  “Manchester City Football Club now represents a bottomless river of glory.”
  — Rory Smith [36:26]

• Community and Identity:
  He discusses the tension between globalized ownership and local community identity, questioning the implications for fans and the authentic connection between a club and its city.

  “There is this sense that soccer teams belong in a place and belong to a place.”
  — Rory Smith [37:16]

• Economic and Ethical Concerns:
  Smith raises concerns about the opaque nature of such ownership deals and the potential for economic imbalances, as seen in the Manchester Life real estate development project.

  “The council obviously deny them intensely.”
  — Rory Smith [38:21]

Expanding the NBA's Global Footprint

Guest: Derek Fisher, Former NBA Player and Coach

Derek Fisher discusses the NBA's strategic expansion into the Middle East, particularly through exhibition games and potential long-term investments.

• Cultural Exchange and Diplomacy:
  Fisher emphasizes the role of sports in fostering cultural understanding and diplomacy, recounting his positive experiences during NBA barnstorming trips in Abu Dhabi.

  “We're continuing to test and focus groups what NBA basketball would be like in countries outside of the United States.”
  — Derek Fisher [45:27]

• Strategic Vision:
  He outlines the NBA's vision to create unique basketball experiences abroad, suggesting that future ventures could involve more intimate and innovative arena designs tailored to local tastes.

  “Create a different experience for fans, a more intimate environment, be as innovative as possible.”
  — Derek Fisher [47:16]

• Political Considerations:
  Fisher touches on the delicate balance between sports and politics, advocating for athletes to act as bridges between cultures rather than engaging in political disputes.

  “We have to keep in mind as athletes ... bringing diplomacy and opening people's minds up to seeing people for who they actually are.”
  — Derek Fisher [48:12]

Conclusion: Sports as a Multifaceted Tool for Global Strategy

In this episode, Freakonomics Radio unpacks the sophisticated ways in which sports are intertwined with economic strategies and geopolitical ambitions. From Kash Shaikh's entrepreneurial efforts to introduce baseball in the Middle East to governmental tactics of nation branding through sports investments, the podcast illuminates the broader implications of these actions. The discussions with Simon Chadwick, Rory Smith, and Derek Fisher highlight both the opportunities and challenges that arise when sports transcend their traditional roles, serving as instruments of soft power, economic diversification, and cultural diplomacy.

Notable Quotes

• Kash Shaikh [50:02]:
  “Sport is one of the great unifiers of all time in the history of mankind.”

• Simon Chadwick [22:39]:
  “Sport being deployed as a policy instrument for geopolitical purposes.”

• Rory Smith [36:26]:
  “Manchester City Football Club now represents a bottomless river of glory.”

• Derek Fisher [45:27]:
  “We're continuing to test and focus groups what NBA basketball would be like in countries outside of the United States.”

Further Insights

The episode also touches on broader themes such as the commercialization of sports, the ethical implications of foreign investments, and the potential for sports to influence societal change. Through engaging narratives and expert analyses, listeners gain a comprehensive understanding of why governments are increasingly viewing sports as valuable assets in their global strategies.

For those interested in the intricate dynamics between sports, economics, and politics, Episode 640 of Freakonomics Radio offers an enlightening exploration of why governments around the world are placing significant bets on the realm of sports.