Saudi Arabia is pushing ahead with its plans to bring in more changes to its football structure with the announcement of privatisation plans for six more clubs.
The kingdom's ministry of sport has launched the latest phase of the 'sports clubs investment and privatisation project' to bring in fresh investment at 14 more clubs.
Six clubs will now be available for investments starting in August - Al Zulfi, Al Nahda, Al Okhdood, Al Ansar, Al Orouba, and Al Kholoud. The clubs have been selected based on their operational readiness, financial health, administrative capabilities and athletic facilities.
After that process is completed, eight more clubs - Al Shoalah, Hajar, Al Najmah, Al Riyadh, Al Rawdhah, Jeddah, Al Taraji, and Al Sahel - will also be up for privatisation at a later stage.
It marks the next stage in the transformation process of Saudi football which started last year when Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, took control of four of the country’s most prominent football clubs.
The PIF acquired majority stake in Al Hilal, Al Nassr, Al Ittihad and Al Ahli, ushering in a new era in Saudi football that saw it become one of the new main centres of the sport.
Saudi Pro League thus became one of the most high profile leagues in the world, attracting the biggest names with record deals.
Who will invest in Saudi clubs?
Earlier this year, vice-minister of sport Bader Alkadi said that the kingdom was preparing for a fresh wave of private investments.
“We expect to have another wave of privatisation coming up soon,” Alkadi told Bloomberg in March. “That gives us opportunity to make the investment in sport a sustainable investment.”
Until now, the Saudi PIF has been the main player driving up investments in football and other major sports. With a total of 14 football clubs set for privatisation, outside investors could be sought. Reports from the kingdom stated that the clubs are available for privatisation to foreign investors as well.
Transformation of sports
Five-time Ballon d’Or winner Cristiano Ronaldo laid the foundations by signing for Al Nassr last December in reportedly one of the most lucrative player deals in the game’s history.
In the summer, the SPL embarked on an aggressive player-recruitment programme that included then-Ballon d’Or holder Karim Benzema, Brazil superstar Neymar, and the likes of N’Golo Kante, Sadio Mane and Riyad Mahrez as well.
It was a season to remember as Ronaldo set a new goalscoring record.
Ronaldo, 39, struck 35 goals in 31 games for Al Nassr to set a new mark, overtaking Abderrazak Hamdallah's previous record of 34 in the 2018/19 season. The Portuguese forward also registered 11 assists, taking his SPL goal involvements to 46.
The new investment plans have had significant impact on the Saudi Pro League. The league has seen significant commercial revenue growth from last season, with a goal to potentially reach an annual total of 1.8 billion Saudi riyals (Dh1.76 billion).
Clubs are also making efforts to raise the bar by investing in facilities and stadiums. With the help of the ministry, Al Fateh, Al Ettifaq, Al Taawoun, Al Shabab, and Al Hilal all moved to their own home stadiums during the 2023-24 season.
It is all part of a grand project launched by Crown Prince Mohammed bin Salman, in line with Saudi Arabia's Vision 2030.
The kingdom has been investing heavily in sport to raise the profile of the country as an attractive destination for business, tourism and recreation.
Earlier, the PGA Tour, European Tour and Saudi-backed LIV Golf circuit had announced a landmark agreement to merge and form a commercial entity to unify golf.
Saudi Arabia then shifted its focus to tennis where the PIF and the WTA announced a multi-year partnership. In a similar deal that was unveiled with the men's tour (ATP) in February, PIF will also now become the first ever naming partner of the WTA Rankings.
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