Reuters, June 5, 2018 - The state news agency SPA reported on Monday that Saudi Arabia plans to privatize a number of sports clubs beginning in the fourth quarter, giving new life to a strategy that is a part of an ambitious economic program to lessen reliance on oil.
According to the outlet, the Saudi Crown Prince Mohammed bin Salman's initiative will permit significant corporations and development organizations to make investments in sports teams in exchange for the transfer of ownership.
In a statement released by the state media, it was stated that the idea will offer a number of sports clubs for privatization, beginning in the fourth quarter of 2023. However, it was not stated how many clubs would be privatized.
One of the cornerstones of the government's Vision 2030 economic diversification strategy, which aims to establish new businesses and generate employment, is sports.
According to the statement, football, the nation's national sport, is a primary emphasis of the project.
In late 2016, the government gave its approval to plans to privatize state-owned sports clubs. Reuters was informed by sources in February 2017 that Saudi Arabia had recruited the local private investment bank Jadwa Investment to provide guidance on the privatization of up to five clubs.
However, the country's football federation's then-president stated in early 2019: "I don't know whether it will be 2020 or 2022 until the plan is ready."
The monarchy has been investing heavily in improving its football position in the meanwhile. In October 2021, a consortium was led by its sovereign wealth fund, PIF, which is at the heart of Vision 2030, to purchase Premier League team Newcastle United.
Some of the most decorated athletes in the sport have also been drawn to the league.
Cristiano Ronaldo, a legendary player in Portuguese football, joined Al Nassr in Saudi Arabia at the conclusion of last year.
Last month, a source close to Lionel Messi informed Reuters that he had been made a formal offer to play for Saudi Arabian side Al-Hilal next season. Messi is Ronaldo's competition for the finest player of his generation.
Additionally, club Al Ittihad and French forward Karim Benzema have agreed to terms for a two-year contract, according to Saudi official media on Sunday.
By 2030, the kingdom hopes to increase the league's earnings from 450 million riyals yearly to 1.8 billion riyals ($480 million), according to the SPA.
expects the market value of the league to increase by 8 billion riyals in the same time frame from about 3 billion.
(1 USD = 3.7502 R)
Jana Choukeir reported; Yousef Saba wrote; Andrew Cawthorne and Sriraj Kalluvila edited
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