Saudi football moves from checkbooks to balance sheets

The Kingdom’s football project is moving into a new phase. Two years after the Public Investment Fund (PIF) took control of the country’s four biggest clubs and bankrolled a parade of marquee signings, the fund has recently sold a majority stake in its most decorated team, Al Hilal, to Prince Alwaleed bin Talal’s Kingdom Holding Company (KHC).

The signal? The era of state checkbooks is giving way to one of governance, recurring revenue, and private capital. We spoke to Hassan Malik, managing partner for Monitor Deloitte and Sports and Tourism leader for Deloitte Middle East, to work out what comes next. Edited excerpts from our conversation:

EnterpriseAM: The PIF spent two years and a fortune turning the Saudi Pro League into a global talking point. Is the strategy now shifting away from marquee signings?

Hassan Malik: From the outset, the strategy has always been to have financially sustainable clubs and long-term commercial value. That takes time, of course, and we are now seeing it play out and come to fruition. The early wave of high-profile player acquisitions successfully accelerated the Saudi Pro League’s global profile and positioned Saudi Arabia as a serious player in international football.

What we are seeing now is not necessarily a new direction, but the continued evolution of a longer-term strategy that has been developing over several years, beginning with the national Sports Club Support Strategy in 2019. Areas such as governance, infrastructure, youth development, fan engagement, and operational sustainability have been part of the broader club development vision for some time. The focus today is increasingly on accelerating that maturity and creating commercially viable clubs capable of generating long-term value beyond player transfers alone.

DATA POINT- Deloitte analysis put SPL spending at a record USD 957 mn in the 2023 transfer window, second only to the Premier League globally.

E: How big of a signal is the Al Hilal sale for privatizing the rest of the league?

HM: It is a highly significant development, because it reinforces that privatization is an active market evolution already taking shape. Deloitte’s research highlights that the transformation of clubs into profitable and sustainable enterprises requires stronger governance, financial discipline, and long-term operational planning. Transactions like this help create valuation benchmarks, encourage broader private-sector participation, and signal growing confidence in Saudi football as an investable asset class.

REMEMBER- The PIF sold a 70% stake in Al Hilal to the KHC at an SAR 1.4 bn (USD 373 mn) enterprise value, staying on as a remaining shareholder — its first sell-down since it took controlling stakes in Al Hilal, Al Nassr, Al Ittihad, and Al Ahli in July 2023.

E: Can Saudi clubs actually stand on their own financially? Or, will the state keep writing the cheques?

HM: Over time, many clubs can absolutely become more commercially sustainable, but this is a long-term transformation journey rather than an overnight shift. The biggest challenge is moving from rapid growth and international attention toward sustainable monetization. Visibility can be accelerated relatively quickly through marquee signings, but building recurring commercial revenues takes considerably longer. Areas such as sponsorship diversification, media rights, international fan engagement, merchandising, and matchday revenues still require further development compared to more mature global football ecosystems.

Still, even some of the world’s largest football clubs continue to rely on shareholder support or external capital. The more important objective is creating diversified revenue streams, stronger governance, and sustainable operating models — and Saudi Arabia's advantage is that it is building this ecosystem with strong strategic alignment, infrastructure investment, and government support already in place.

E: The PIF is selling down clubs and pulling the plug on LIV Golf. Is this caution, or something else?

HM: I would describe it less as caution and more as strategic evolution. The initial investment phase was designed to accelerate global relevance, credibility, and market positioning. Once that visibility is established, the focus naturally shifts toward commercial scalability, governance, and sustainable returns. We are increasingly seeing a more portfolio-driven and commercially disciplined approach.

E: Where does this leave the bigger picture — and the 2034 World Cup?

HM: Football is not being viewed purely as a sport, but as a catalyst for tourism, private-sector growth, infrastructure development, youth engagement, and global positioning. Major events like the 2034 Fifa World Cup require far more than elite players; they require mature sporting institutions, commercial ecosystems, world-class infrastructure, and strong fan engagement models.

Over the next three to five years, we are likely to see deeper private-sector participation, more international partnerships, and increasing emphasis on monetization and operational maturity. In football specifically, the focus will likely expand further into academy systems, digital fan engagement, media strategy, infrastructure, and community development.