LOGIC Consulting

  • Alumni
Contact Us

March 10, 2025

Thumb

Bigger Than Football | The Journey of Club Privatization

Saudi Arabia's privatization journey transcends the realm of football, marking a comprehensive transformation that intertwines sports, business, and regional identity. Central to this evolution is the Kingdom's Vision 2030, an ambitious blueprint to diversify the economy and reduce dependence on oil revenues. A pivotal component of this vision is the Privatization Program, initiated in 2018, which seeks to enhance the role of the private sector across various domains, including transport, health, education, and municipal affairs.

In the sports sector, the privatization of football clubs is driving significant economic and social advancements. This initiative aims to attract foreign investment, boost local economic activity, and cultivate a thriving sports culture. The Saudi government’s recent decision to privatize 14 additional clubs further highlights its dedication to elevating the professionalism and competitiveness of the sports industry.

Beyond the economic implications, this transformation is reshaping regional identity. By investing in sports and cultural events, Saudi Arabia aims to position itself as a global hub for entertainment and tourism, thereby enhancing its international standing. The Kingdom's focus on cultural, sports, and historical events has positioned it to capture a share of the 1.6 billion travelers expected to grow to 3.8 billion by 2032.
This multifaceted approach to privatization signifies a paradigm shift for Saudi Arabia and the broader region. It reflects a strategic move to intertwine economic diversification with cultural enrichment, positioning privatization as a dynamic change agent in the Kingdom's ongoing
transformation.

Related Articles

Contact Us

Brochure

  1. THE SPORTS PERSPECTIVE

Expanding Beyond Football

Saudi Arabia’s focus on privatization has laid the foundation for a revolutionary
transformation of its sports sector. While football stands as the cornerstone, the
Kingdom’s ambitions transcend the pitch, aiming to create a diversified sports ecosystem
that fosters growth across multiple disciplines. This strategy aligns with Vision 2030 and
leverages the Public Investment Fund (PIF) to elevate Saudi Arabia’s global sports profile.
The Kingdom is actively investing in sports such as golf, tennis, and handball, along with
infrastructure and event capabilities, to ensure a comprehensive sports environment.
These efforts enhance cross-sport promotion, attract international attention, and boost
tourism—positioning Saudi Arabia as a hub for global sports and cultural engagement.

1.1. Key Sports Investments and Developments
  • Football:
  1. Acquisition of major football clubs (e.g., Al-Nassr, Al-Ittihad, Al-Hilal, and Al-Ahli) under the PIF.
  2. Signing renowned players like Cristiano Ronaldo and Neymar to elevate the Saudi Pro League’s global appeal.
  3. Hosting high-profile tournaments, including the AFC Asian Cup 2027 and a bid for the FIFA World Cup.
  • Golf:
  1. Establishing LIV Golf as a global competitor to traditional golf tours.
  2. Hosting premier golf events like the Saudi International, attracting top players worldwide.
  • Tennis:
  1. Organizing the Diriyah Tennis Cup, featuring elite players in a world-class setting.
  2. Developing tennis infrastructure and fostering grassroots programs to grow the sport domestically.
  • Motorsports:
  1. Hosting the Saudi Arabian Grand Prix (Formula 1) and the Dakar Rally, showcasing state-of-the-art racing infrastructure.
  2. Investing in Extreme E and Formula E to promote sustainable motorsports and innovation.
  • Combat Sports:
  1. Attracting global attention with high-profile boxing matches, including bouts featuring Anthony Joshua and Tyson Fury.
  2. Hosting WWE events, including Crown Jewel and Elimination Chamber, as part of a long-term partnership.

2. LEVELING UP

Saudi Football’s Shift to Global Operational Excellence

Saudi Arabia’s privatization of football clubs goes beyond financial restructuring; it embodies
a holistic shift in management and operations aimed at fostering long-term success and sustainability. This transformation focuses on implementing modern governance structures, enhancing operational efficiency, and adopting best practices to compete at an international level.

2.1. Establishing Strong Governance: The First 100 Days

The initial 100 days of the privatization journey are critical for laying a foundation of strong
governance to drive long-term success. Key priorities during this phase include:

  • Formation of Independent Governance Bodies:
  1. Establishing a board of directors with diverse expertise in sports, finance, and management to oversee the club’s strategic direction.
  2. Creating specialized committees to enhance decision-making and accountability.
  • Development of Governance Frameworks:
  1. Defining clear roles and responsibilities for stakeholders, including club management, investors, and regulatory authorities.
  2. Drafting policies for ethical conduct, compliance, and conflict resolution to ensure transparency and trust.
  • Engagement with Stakeholders:
  1. Conducting meetings with investors, regulators, and fans to align expectations and foster collaboration.
  2. Launching communication initiatives to build trust and maintain transparency about the privatization process.
  • Compliance with National and International Standards:
  1. Ensuring the club adheres to FIFA regulations, Saudi Football Federation guidelines, and Vision 2030 objectives.
  2. Conducting regular audits to verify compliance and identify areas for improvement.

Want To Read More?

You can download it and read it any time you want

Download Now