Business of Sport

Investor bids invited for six Saudi football teams

August 8, 2024, 10:07 AM

bids Saudi football teams — Solomon Kvirkvelia, of Al Okhdood, one of six Saudi teams put up for sale, challenges Al Nassr's Cristiano Ronaldo

Gulf investment interest likely
September 19 bid deadline
8 more teams to be sold

Saudi Arabia this week opened bids for six football teams as part of its new drive to monetise the kingdom’s sport sector and raise its foreign direct investment numbers.

Local and international investors are invited to bid for Al-Okhdood, Al-Orouba and Al-Kholoud – all in Saudi Arabia’s top Pro League – as well as Al-Zulfi, Al-Nahda and Al-Ansar. Applications are open until a deadline of September 19.

A negotiation process will then start with the best offers, the Saudi Press Agency (SPA) reported, citing the ministry of sport.

A further eight teams will be put up for sale at a later stage.

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“This move is part of the ongoing implementation of the sports clubs’ investment and privatisation project launched by the Crown Prince, in line with the goals of Saudi Vision 2030,” SPA said, referring to Saudi Arabia’s economic transformation programme.

Foreign direct investment in Saudi Arabia is well below the government target of $100 billion a year by 2030, including in sports, tourism and entertainment. The sports sector is hoped to account for 10 percent of GDP by 2030.

Last year the Saudi government transferred to the Public Investment Fund 75 percent ownership of four Pro League teams: Al-Ittihad, Al-Ahli, Al-Hilal, where the Brazilian superstar Neymar plays, and Al-Nassr, for which Portuguese striker Cristiano Ronaldo plays.

The state oil giant Aramco was given ownership of the Pro League team Al-Qadsiah, and the PIF-owned giga-project Diriyah Gate was given Al-Diriyah, which plays in the lower leagues.

PIF is leading the economic reform plans through its ownership of around 168 subsidiaries. They are mostly local, including the giga-projects at the heart of the $1.25 trillion reform project.

Observers say the new clubs for sale are more likely to draw interest from Gulf rather than international investors, who could have concerns about profitability.

Saudi sports investments have extended to those once seen as niche or non-existent in the kingdom including golf, snooker, Formula 1, boxing, mixed martial arts, tennis, baseball and darts.

But the domestic and international investments appear to have quickly given Saudi Arabia soft power. They have won a large global audience in television and other media, a survey published by the media analytics consultancy Carma said in June.