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Privatization of football clubs and Saudi Pro League (SPL) spending caught the attention of the foreign press, with CNBC shedding light on the bns of USD spent to bring home global stars from Europe, such as Cristiano Ronaldo, in a bid to compete with big leagues. With spending easing from USD 1 bn in 2023 to USD 486 mn this year, the strategy has recently shifted toward privatization, part of Vision 2030 of economic diversification.
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The Public Investment Fund and the Sports Ministry target widening SPL’s annual revenue to USD 480 mn by 2030. They are reportedly mulling selling their stakes in the big four clubs, as the PIF has already “done the initial investment” of building infrastructure and forming a squad that will attract interest, Kieran Maguire, Finance of Football podcast host, told the news outlet. Privatization brings home global networking of foreign investors, making the SPL an attractive destination for global stars, Kristian Coates Ulrichsen, a Middle East fellow at the Baker Institute, told CNBC.
CNBC highlighted the shift that began with three clubs sold to private entities, beginning with Al Kholood, which was acquired by US-based Harburg Groups in July. The news outlet hosted Al Kholood’s new owner Ben Harburg (watch, runtime: 05:48), whose main financial focus is to break even from the start. The strategy is to make money by developing young local talent and selling them to bigger clubs, along with attracting global talent to the club also before selling them, Harburg said.
Meanwhile, Reuters spoke with SPL CEO Omar Mugharbel about the newly launched financial regulations aiming for sustainable financial growth through privatization. Mugharbel referred to the growing revenue from both the league and individual clubs, the SPL’s progressively younger squads (with an average age of 26 years) and the smaller squad sizes (25 players instead of 30 previously) — all boosting local talents in the league.
