Sports

Roshan League club budgets: Performance and viewership determine the future

The Saudi Pro League has announced the launch of the second phase of its program to attract elite football players, introducing a new mechanism for distributing financial allocations to clubs in the Roshan League. This step represents a strategic shift from the establishment phase and attracting global attention to a phase focused on strengthening governance and financial sustainability, where club budgets will be directly linked to their performance on and off the field for the first time in the league's history.

The new mechanism is based on four key criteria for distributing financial support, aiming to create a fair and motivating competitive environment. These criteria include an equal share of 22% for all clubs to ensure a minimum level of financial stability, 22% based on sporting performance and final league position, 28% linked to television viewership ratings, and finally, 28% determined based on commercial performance and each club's ability to attract sponsors and generate its own revenue. This model provides a clear framework that links allocations to the sporting and commercial value of each club.

Background to the transformation: From global polarization to corporate sustainability

This development comes as part of the comprehensive transformation strategy for Saudi sports, which was launched strongly within the Kingdom’s Vision 2030. The first phase of the program, which began in the summer of 2023, focused on raising the technical value and global appeal of the league by attracting big names in the world of football such as Cristiano Ronaldo, Neymar and Karim Benzema, which contributed to achieving huge leaps in the market value of the league and increasing commercial revenues by more than 350%.

Now, the league is moving into a more mature phase aimed at building a sustainable model. Instead of relying entirely on central support, clubs are now given a greater role in determining their financial future through strategic planning and efficient resource management. The league confirmed that recruitment decisions and budget management remain within the clubs' purview, while the recruitment team's role focuses on providing technical and analytical support.

The importance and expected impact on the future of Saudi football

This mechanism is expected to have a profound impact on various levels. Locally, the new system will ignite competition among all clubs, including newly promoted ones, as each club now has a tangible incentive to improve its sporting results, develop its marketing strategies, and strengthen its relationship with fans to increase viewership. Regionally, this step solidifies the Roshan League's position as a leading model in the region, adopting global best practices in financial management and transparency, which may inspire other leagues to adopt similar models. Internationally, this system enhances the credibility of the Saudi League and its attractiveness to global investors and commercial partners, presenting a model that combines ambitious spending with sound financial governance, and moving closer to the revenue distribution models used in major European leagues.

In a statement, Omar Maghrabi, CEO of the Saudi Professional League, said: “Every successful program reaches a stage where it requires development. The second phase of the recruitment program builds on what has been achieved, and moves it to a clearer and more sustainable model that links performance on and off the field, and gives clubs a greater role in determining their course.”.

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