After shocking the global football market with a record-breaking $1 billion spending spree in 2023, Saudi Arabia’s Pro League is moving into its next phase: privatization. The kingdom, which has already attracted global stars like Cristiano Ronaldo, Neymar and Karim Benzema, is now turning to structural reform as it seeks to make its football project financially sustainable and internationally competitive.
From record transfers to privatization
The Saudi Pro League’s aggressive transfer policy put it firmly on the global map. Although spending has eased since 2023, it still reached nearly $486 million this year — evidence that the league remains an active player in the global market.
But Saudi authorities, working with the Public Investment Fund (PIF) and the Ministry of Sports, have made clear that the focus is shifting. This summer, three clubs were sold to private owners, including the first foreign investment in July when U.S.-based Harburg Group acquired Al-Kholood. Reports suggest that stakes in the league’s “big four” clubs could also be sold as part of the privatization plan.
Kieran Maguire, host of the Finance of Football podcast, told CNBC that privatization is the natural next step. “The PIF has already done the initial investment,” he said. But he warned it remains a “high-risk strategy,” noting that Saudi clubs are unlikely to be run profitably in the short term.
Why privatization now?
Analysts point to two main drivers: financial sustainability and expertise.
Kristian Coates Ulrichsen, a Middle East fellow at the Baker Institute, noted that fewer blockbuster transfers since 2023 reflect tighter budgets. “If clubs want to purchase a player, they have to make room in their budget,” he said.
Paul Williams, co-host of The Asian Game podcast, added that “spending $1 billion each year is clearly unsustainable.” Instead, clubs are being pushed to balance their books and find new revenue sources.
For new investor Ben Harburg, who acquired Al-Kholood, the logic is clear: “You can’t keep dumping money into clubs that are burning it every year.” Drawing parallels with Europe, he said clubs could make money by developing and selling local talent.
Ulrichsen also highlighted the expertise and credibility that foreign investors bring, along with global networks and capital that could improve facilities, training and professionalism — making the league more attractive to players worldwide.
Global ambitions and local talent
Privatization also aligns with Saudi Arabia’s broader Vision 2030 agenda, which seeks to diversify the economy away from oil. Football is seen as a cultural and commercial lever, with the ultimate goal of boosting Saudi Arabia’s global standing ahead of hosting the 2034 FIFA World Cup.
Williams emphasized that privatization could open the path for Saudi players to Europe’s top leagues, improving the domestic talent pool and helping the national team meet its World Cup ambitions.
Beyond the pitch
Still, analysts caution that privatization alone is not enough. “Saudi Arabia must have a quality product,” Maguire said, adding that the league’s commercial ambitions will only succeed if the football is compelling to fans and broadcasters.
He compared the strategy to a “Trojan horse”: attracting investors through football may lead to wider economic investments across Saudi Arabia.
As the kingdom transitions from lavish spending to long-term sustainability, its football project faces a delicate balancing act — between spectacle and substance, short-term hype and long-term growth. If successful, privatization could not only reshape the Saudi Pro League but also accelerate Riyadh’s broader economic transformation.
