The government of Saudi Arabia has revived a plan to privatise numerous state-owned sports teams, and the sovereign wealth fund will acquire control of four of the kingdom’s biggest football clubs, including Al-Nassr, for which Cristiano Ronaldo plays.
According to the sports ministry’s Twitter post on Monday, the Public Investment Fund (PIF) will control 75% of al-Ittihad, Al-Ahli, Al-Nassr, and Al-Hilal beginning in the fourth quarter, following a report by the state news agency SPA that Saudi Arabia will privatise numerous sports teams.
All but Al-Ahli play in the Saudi First Division, the league below the top level Saudi Professional League. PIF has a history of partially privatising the businesses it has acquired.
PIF is at the centre of the government’s Vision 2030 economic diversification plan, which uses sports as one of its cornerstones to generate new businesses and create new jobs.
Earlier on Monday, SPA stated that Saudi Crown Prince Mohammed bin Salman had initiated a privatisation plan that would primarily target football clubs and would allow enterprises and development agencies to invest in and take over the teams.
By 2030, the Saudi Arabian government hopes that the league’s annual earnings will have increased from its current 450 million riyals to 1.8 billion riyals ($480 million). SPA further noted that the company anticipated a gain in market value from 3 billion riyals to more than 8 billion during the same time frame.
According to the kingdom’s sports ministry, the Second Division football club al-Suqoor would be converted into a corporation and owned by NEOM, the organisation responsible for the construction of the desert metropolis being planned by the monarchy.
Al-Qadsiah FC, a team in the Saudi First Division, will be owned by Saudi oil company Aramco, Alula FC, a team in the Saudi Third Division, will be owned by the Royal Commission for Al-Ula, and al-Diraiyah FC, a team in the Saudi First Division, would be managed by the Diriyah Gate Development Authority.
Saudi government is gaining revenue input from sports
An international magazine reported in February 2017 that unnamed sources said the Saudi government has retained the services of a private investment firm, Jadwa Investment, to assist in the privatisation of up to five football clubs.
At the start of 2019, though, the country’s football federation chief said, “I don’t know whether it will be 2020 or 2022 until the plan is ready.”
The kingdom, however, has invested much in improving its football standing. In October of 2021, PIF led a partnership that purchased Newcastle United of the Premier League.
Some of the sport’s most accomplished players have also gravitated towards the league, most notably the Portuguese legend Ronaldo, who signed with Al Nassr after the season’s close.
A source close to Argentina captain Lionel Messi told Reuters last month that he had received a formal offer to join Al-Hilal for the upcoming season. Messi is Ronaldo’s challenger for the title of best player of his generation.
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