Saudi Arabia’s Public Investment Fund (PIF) will take over four of the leading football clubs in the country.
The project aligns with the ambitious objectives of Saudi sports within Vision 2030, emphasising the development of an efficient sports sector by encouraging and enabling the private sector to contribute to the industry’s growth.
PIF takes over top Saudi football sides
PIF will own 75 per cent of each club and will establish not-for-profit foundations for each side and will select board members for the four sides.
In a statement on Twitter, PIF said: “As part of today’s announcement of the Sport Clubs Investment and Privatisation Project, four Saudi clubs – Al Ittihad, Al Ahli, Al Nassr and Al Hilal – have been transformed into companies, each of which is owned by PIF and non-profit foundations for each club.
“PIF’s ownership in the clubs’ companies represent 75 per cent in each club, while their respective non-profit foundations hold 25 per cent ownership of each club.
“The transfer of the four clubs will unleash various commercial opportunities, including investment, partnership and sponsorships across numerous sports.”
PIF owns 80 per cent of English Premier League side Newcastle United.
The new ownership structure places the Saudi sovereign wealth fund atop an impressive roster of players, not the least Al Nassr’s Cristiano Ronaldo.
Saudi clubs have been heavily linked with a summer of transfer activities.
Al Hilal, on the other hand, have been repeatedly linked with a move for World champion Argentina Champion Lionel Messi.
Saudi Arabia’s Sport Clubs Investment and Privatisation Project has three strategic objectives:
- Fostering investment opportunities and an appealing investment environment in the sports sector
- Boosting professionalism
- Governance, and financial sustainability in sports clubs; and enhancing clubs’ competitiveness and infrastructure
The Saudi Pro League, which has players from more than 40 different countries and has seen attendances increase by nearly 150 per cent in the past year, will be supported in its ambition to be amongst the top ten leagues in the world.
Furthermore, the project aspires to raise the league’s commercial revenues from SR450m ($120m) riyals in 2022 to more than SR1.8b ($480m) annually, while generating private-sector investment opportunities and increasing the market value of the Roshn Saudi League from SR3bn ($800m) to more than SR8bn ($2.1bn) by 2030.