RIYADH: The Saudi Sports Ministry has launched the latest phase of the Sports Club Investment and Privatization Project, aimed at privatizing 14 more clubs.
The project, launched in June last year by Crown Prince Mohammed bin Salman, is being implemented in partnership with the National Privatisation Centre and aims to accelerate the development of the sports industry in the Kingdom by inviting the business sector to work with clubs.
Six additional clubs are now available for privatization from August: Al-Zulfi, Al-Nahda, Al-Okhdood, Al-Ansar, Al-Orouba and Al-Kholoud. The clubs were selected based on their operational readiness, financial condition, administrative capacity and sports facilities.
Eight more clubs — Al-Shoalah, Hajar, Al-Najmah, Al-Riyadh, Al-Rawdhah, Jeddah, Al-Taraji and Al-Sahel — will also be earmarked for privatisation at a later stage.
Following the successful privatisation of the Al-Hilal, Al-Nassr, Al-Ahli and Al-Ittihad plants in the first phase, the project has now entered the second phase.
As part of its commitment to accelerate the transformation of the sports sector, the project aims to strengthen the administrative and financial management of clubs, creating new opportunities for sports investments in the country to develop club infrastructure, among other things. This in turn will take the fan experience to a new level, the ministry said in a statement.
The Roshn Saudi League has shown a significant increase in commercial revenues compared to last season following the privatization of clubs. It is targeting a potential annual total of 1.8 billion Saudi riyals ($479,819).
With over 80 percent of the population following, watching or playing soccer, the league’s growth is increasing the sporting and entertainment experience for a large fan base. This progress raises the bar for clubs in the league, encouraging them to invest in facilities and stadiums.
With the help of the ministry, Al-Fateh, Al-Ettifaq, Al-Taawoun, Al-Shabab and Al-Hilal have moved to their own stadiums for the 2023-2024 season.
The Investment and Privatization of Sports Clubs Project operates on two main tracks. The first involves granting development companies and organizations permission to invest in sports teams in exchange for transfer of ownership. The second involves offering public sports clubs for privatization. Investors interested in participating in this project can visit the ministry’s website for application details and further information.