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Saudi Crown Prince and Prime Minister Mohammed bin Salman has launched an investment and privatisation plan for sports clubs.
In the first stage, Al Ittihad, Al Ahli, Al Nassr, and Al Hilal will be transformed into companies, each of which will be 75 percent owned by the Public Investment Fund (PIF) and the remaining by the non-profit foundations of each club, the Saudi Press Agency reported on Monday.
Furthermore, it includes the transformation of four clubs into development bodies. Al-Qadisiyah Club’s ownership will be transferred to Saudi Aramco, while AlUla Club will be transferred to the Royal Commission for AlUla.
The Diriyah Club will be owned by Diriyah Gate Development Authority and Saudi Falcon Club will be transferred to NEOM.
The project has two primary components. The first includes the approval of corporations and public sector organisations investing in sports clubs, while the second component involves privatising sports clubs starting from the final quarter of 2023, the SPA statement said. The move aims to raise the Saudi Pro League’s commercial revenues from 450 million Saudi riyals ($119.97 million) in 2022 to over SAR1.8 billion annually. In addition, it will generate private-sector investment opportunities and increase the market value of the Roshn Saudi League from SAR3 billion to more than SAR8 billion by 2030, the report said.
(Writing by D Madhura; Editing by Anoop Menon)
