Saudi Arabia passes four domestic football teams to sovereign fund

The Saudi government has handed ownership of four top domestic football teams to its deep-pocketed sovereign wealth fund, putting increased financial firepower behind the country’s ambitious plans in the sport.

The Public Investment Fund said on Monday that Al Ittihad, Al Ahli, Al Hilal and Al Nassr — where Portuguese star Cristiano Ronaldo plays — had been converted into corporate entities, having previously been run by the state. The $600bn fund will own 75 per cent of each of the four clubs, with the remaining shares held by new non-profit foundations.

The move to change the ownership structure of the biggest domestic clubs coincides with a push to bring more top players to the country. Since Ronaldo arrived in January, lucrative offers have reportedly been made to Argentina’s World Cup-winning captain Lionel Messi and Karim Benzema, winner of the 2022 Ballon d’Or. The trio are among the greatest footballers of the past 20 years, although all of them are nearing the end of their careers. Messi already has a promotional deal with Visit Saudi, the country’s tourism board.

The Saudi Press Agency said the changes at the four clubs were aimed at enticing investment into the sport, improving competitiveness in the league, and making the game more professional and financially sustainable. Riyadh wants the Saudi Pro League to be one of the top 10 leagues in the world and hopes the privatisation project will help quadruple annual revenue in the league to 1.8bn rials ($480mn), SPA said.

PIF said the new structure would “unleash various commercial opportunities” and enable “further investment and sponsorship”.

The wealth fund, chaired by Crown Prince Mohammed bin Salman, is steering the country’s economic reform plan to diversify revenues beyond oil. It has acquired or invested in companies ranging from electric vehicle manufacturers to construction and green energy. 

Saudi Arabia has been pouring money into sport globally, including football, Formula One and a $2bn assault on golf. LIV Golf, now in its second year, has sought to disrupt the sport by luring some of its best-known players to its rebel tour with huge pay packets.

Riyadh also launched an events investment fund for culture and sports in January.

Football is a particular focus due to its popularity both at home and globally. PIF led the £310mn takeover of English Premier League club Newcastle United in 2021. Under Saudi ownership, the team has climbed rapidly up the league table, and qualified for next year’s Champions League after finishing above Manchester United and Liverpool.

In a sign of Saudi ambitions in the sport, PIF has committed more than $2bn to long-term sponsorship deals in the domestic league.

Saudi Arabia has also been mooted as a potential World Cup host, following the successful tournament held in neighbouring Qatar late last year.

Additional reporting by Samer Al-Atrush in Riyadh