Manama: Saudi Arabia’s cabinet has approved a move to privatise sports clubs and turn them into companies.
The decision is expected to revitalise football in the country and put an end to financial crises that often stall teams and to the endless changes of management that often resulted in destabilisation and irregular performances.
The Council of Ministers, chaired by King Salman Bin Abdul Aziz, took the decision after reviewing a recommendation submitted recently by the Council of Economic and Development Affairs, Adel Al Turaifi, the Minister of Culture and Information, said in a post-session statement on Monday.
The privatisation measures will be applied to the clubs that are playing in the professional football league, the country’s top division. They will be turned into companies through the sale of their assets.
The General Authority of Sports, the Ministry of Commerce and investment and the Ministry of Economy and Planning will set the rules and regulations for the regular operation of the companies.
A supervisory committee, comprising representatives from several ministries and football bodies, will be formed to oversee the various phases of the privatisation process.
The privatisation plan is expected to give Saudi Arabia’s top football league a much-needed boost and will provide more money to invest in building new stadiums and sports facilities.
Prince Abdullah Bin Musaed Bin Abdul Aziz, the president of the General Authority for Sports, said that the privatisation process would start within six months.
“We will start with two to four clubs,” he said at a press conference. “Every club will have two components – the assets and the properties. Whoever buys the assets does not have to buy the property or headquarters. He will have the option to build a new stadium for the club.”
Prince Abdullah said that the main objectives are to elevate the status of the Saudi clubs and football league internationally and to ensure a professional management.
“We will set a price tag for each club and it will not be sold if the amount is not offered, even if it means postponing the privatisation for three years,” he said.
The price tag will be decided based on the club’s income in the last three years, he added.
Prince Abdullah said that in the first phase, only Saudi investors will be allowed to bid for clubs.
