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The Saudi Pro League has engaged in discussions on new broadcast deals and partnerships with private equity companies to bolster foreign investment in Saudi Arabian sports, according to Bloomberg report.
The Kingdom of Saudi Arabia is working to become a powerhouse of professional sports. An effort that started with the influx of star players from Europe, the New York-based news agency said.
Saudi Arabia’s $700 billion wealth fund and oil company Aramco recently acquired several Pro League Clubs, in a bid to build up the teams’ brands and revenues.
The plan is to sell stakes to investors, including specialized global private equity companies, in order to harness their expertise, an unnamed source told Bloomberg.
Accordingly, the targeted investors have significant expertise in overseeing sports teams, but the talks are private, the source said.
Building up the teams’ brands and revenues will prove crucial for the success of the Saudi Arabian efforts to revamp the sector.
Crown Prince Mohammed bin Salman has made sports a key component of the state’s economic diversification effort, away from oil.
Star players including Real Madrid’s Karim Benzema and Chelsea’s Kalidou Koulibaly have recently announced they will be joining the Saudi league.
Portuguese superstar Cristiano Ronaldo was among the first stars acquired by the Saudis.
The league made headlines in December when Ronaldo joined a Riyadh-based team on a contract reportedly worth $200 million a year.
Saudi Arabia has also earmarked billions of dollars for its LIV Golf tour to attract top players, including Phil Mickelson and Dustin Johnson, as reported by Bloomberg.
Meanwhile, the Saudi team, Al-Ettifaq club, has also named former England and Liverpool midfielder Steven Gerrard as its new manager.
The league has been working with sports agency IMG to secure short-term agreements with broadcasters in around 30 markets to broaden international exposure, the source told Bloomberg. These markets include Portugal, China and Italy
Combined revenues from these deals are less than $10 million per year, he said. Adding that the goal is to improve the terms of contracts as more star players join Saudi clubs and team values rise.
In a recent official statement, the Saudi government said it had hopes that the privatization of these teams would help quadruple the Saudi Pro League’s annual revenues. The government’s target is to achieve $480 million per annum, by the end of this decade.
Speaking to Bloomberg, a spokesman for the Saudi Arabian Ministry of Sports said the 2022-23 season witnessed its highest-ever live audiences, with more than 2.2 million people attending games. Adding that the matches were broadcast in 170 countries.