Yasser Al-Rumayyan reveals developments in the Public Investment Fund's investment in clubs
His Excellency Mr. Yasser Al-Rumayyan, Governor of the Public Investment Fund (PIF), affirmed that the PIF's investment project in Saudi sports clubs has achieved its objectives with remarkable success. In his recent remarks to the Okaz newspaper during the government press conference held in Riyadh, he noted exceptional and significant growth in commercial revenues and matchday income, in addition to a substantial increase of approximately 120% in revenues from official club stores and merchandise, as well as an unprecedented boost in sponsorship revenues.
Historical context of the sports investment project
This success is a continuation of the investment and privatization project for sports clubs launched by His Royal Highness Prince Mohammed bin Salman, Crown Prince and Prime Minister, in mid-2023. The first phase of this landmark project involved transferring ownership of 75% of Al-Hilal, Al-Nassr, Al-Ittihad, and Al-Ahli clubs to the Public Investment Fund. This strategic transformation aims to build an effective and sustainable sports sector and incentivize the private sector to enable growth in the sports industry, in line with the goals of Saudi Vision 2030 to diversify sources of income.
A major surprise is expected, and corporate governance
In a related context, Al-Rumayyan revealed plans to announce a major surprise soon regarding investment in clubs, in cooperation and coordination with the Deputy Governor, Mr. Yazid Al-Humaid. This step reflects the continued diligent work to develop this vital sector and enhance its investment appeal both locally and internationally.
The governor of the Public Investment Fund emphasized that the fund treats sports clubs as fully integrated investment "companies," subject to a rigorous governance system managed according to the latest commercial and professional principles. He categorically affirmed that fairness in the provision of financial and logistical support is fully ensured among all club companies under the fund's umbrella.
The reality of the disparity between sports clubs
To settle the ongoing debate in the sports community, Al-Rumayyan clarified that the media and public discussions about disparities in support between clubs do not reflect the actual mechanisms of the fund. He explained that this perceived disparity is closely linked to other factors outside the fund's purview, most notably the varying levels of financial support and generous donations received by some clubs from honorary members and independent backers, which creates differences in purchasing and operational capabilities between one club and another.
Local, regional and international impact
The experience of investing in clubs has not only yielded financial returns but has also had profound impacts on several levels. Locally, this transformation has contributed to creating new job opportunities for Saudi youth, developing stadium infrastructure, and raising the level of competitiveness in the Saudi Professional League. Regionally and internationally, Saudi clubs have become the focus of global attention after attracting some of the world's most prominent football stars, leading to an unprecedented increase in sales of global television broadcasting rights to more than 140 countries and enhancing the Kingdom's soft power as a leading global sports destination.
Al-Rumayyan concluded his remarks by emphasizing that the fund operates according to clear and comprehensive governance that ensures equal opportunities for all, noting that this pioneering investment experience has achieved great success on various levels, whether in terms of developing sustainable revenues or enhancing public attendance, which is the real backbone of the success of any sports project.
