Football team in Saudi Arabia transitions to foreign control for the first time
In a groundbreaking move, American-led investment holding company Harburg has officially purchased 100% of Saudi Pro League (SPL) football club Al Kholood. This marks the first time a foreign company owns a club in the Saudi league, signalling a significant shift in the ownership and operation of football clubs under Vision 2030 reforms.
The acquisition was announced by the Ministry of Sports in Saudi Arabia on Thursday. Harburg, led by Ben Harburg, is a sports, press, and technology investment holding with a 6.5% stake in the Spanish second division club Cadiz.
This purchase is part of the privatization process of three SPL teams, which also includes Al Ansar and Al Zulfi. While Al Ansar was transferred to a joint venture between Audat Al-Biladi and Ayana, Al Zulfi ownership went to Nujoum Al-Salam.
The transfer of ownership to these private entities followed regulatory and corporate restructuring by Saudi Arabia’s Ministry of Sport and the National Center for Privatization. The privatization process is part of a broader initiative aimed at diversifying the economy and increasing private sector involvement in sports.
Until recently, the SPL was fully owned by the Saudi Ministry of Sport, with only some clubs supported by wealthy benefactors. However, in 2023, the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, acquired 75% stakes in the four biggest clubs, injecting substantial capital and attracting international stars like Cristiano Ronaldo.
This move is a strategic step towards making the league more competitive and commercially appealing internationally. The league aims to increase its annual revenue to approximately $480 million by 2030 through these reforms and investments.
Al Kholood, based in the city of Ar Rass, finished ninth out of eighteen teams in the last Saudi league. The other two privatized clubs in the league remain owned by Saudi companies.
This news was sourced from the reputable Saudi news service Arabia Saudi. The privatization of these three SPL football clubs is a significant step forward in Saudi Arabia's efforts to modernise and globalise its football industry.
- The news of Harburg's purchase of Al Kholood marks the entry of foreign finance into the ownership of Saudi football clubs, a move that aligns with Vision 2030 reforms aiming to increase private sector involvement in sports and diversify the economy.
- As part of the privatization process, other Saudi Pro League teams, such as Al Ansar and Al Zulfi, have also been transferred to private entities like Audat Al-Biladi, Ayana, and Nujoum Al-Salam, in efforts to make the league more commercially appealing globally.
- With key investments in football clubs like Al Kholood, Harburg, a sports, press, and technology investment holding, could potentially expand its influence in European-league finance and sports, particularly with its existing stake in the Spanish second division club Cadiz.
