Saudi Arabia Makes Waves in World Football with Multi-Million Dollar Transfers
On December 30, 2022, Al Nassr announced the official arrival of Cristiano Ronaldo in the Saudi league, marking not only the biggest signing in history with a salary and commission totaling 500 million euros, but also a significant step towards turning Saudi Arabia into the epicenter of the world football market. Ronaldo himself had previously stated, “I think the Saudi league can be one of the top five leagues in the world,” just a few months after joining the Saudi club.
The impact of Saudi Arabia’s multimillion-dollar transfers with tax-free salaries has been felt worldwide, with the country’s ambitions becoming evident in recent meetings held in London. Representatives of the Saudi Public Investment Fund (PIF) and emissaries from the four most important clubs in Saudi Arabia have engaged in discussions with agents and representatives of almost all Premier League clubs, expressing their interest in signing several of their star players. While the English league currently boasts a high level of players, Saudi emissaries have also begun surveying players from other leagues, including La Liga. Notable names on Saudi Arabia’s target list include Morata, Rakitic, Lo Celso, Mariano, Ayoze, Griezmann, and Saúl.
The procedure followed by the Saudi Investment Fund involves the acquisition of three world stars for each team, with the PIF fully covering the transfer fees, salaries, and commissions. These players are then distributed among the different clubs, while the remaining players in the squad are managed by the clubs themselves.
In a significant move, the Saudi Arabian Sports Minister, Prince Abdulaziz bin Turki al Faisal, announced on June 5 the transfer of ownership of Al Ittihad, Al Nassr, Al Ahli, and Al Hilal clubs to the Public Investment Fund. Under this arrangement, the PIF will own 75% of each club, while the rest will be owned by non-profit organizations. This conversion of the four clubs into companies aligns with the investment and privatization project of sports clubs outlined by Saudi Crown Prince and Prime Minister, Mohamed bin Salmán. The aim of this project is to increase the income of the Saudi soccer league from 450 million riyals (110 million euros) to over 1,800 million riyals (440 million euros) per year.
Saudi Arabia has emerged as the new emerging market in football, following in the footsteps of countries like the United States and China. The multi-million dollar investment led by the Saudi royalty serves as a marketing campaign to position the country as a potential host for the 2034 World Cup. While the Saudi government announced that they will not compete with the Iberian Bid for the organization of the 2030 World Cup, their efforts also reflect a geopolitical movement. Saudi leaders aspire to make their country’s league the most powerful in Asia and establish it as the soccer epicenter of the Arab world. Thus far, they have succeeded in attracting a significant portion of world football to their doorstep.
In the current landscape, Al Shabab has shown interest in signing Ayoze Perez, who is currently a free agent after the expiration of his contract with Betis. While Betis manager Pellegrini wants Perez to continue with the club, the Saudi option appears to have a better chance of securing the player. Additionally, Aaron Martin’s contract with Mainz is set to end, and both Getafe and Cadiz have expressed interest in signing him. Getafe had previously pursued Martin last summer, but he ultimately chose to join Angileri.
As Saudi Arabia continues to make waves in the world of football, the country’s aspirations to create a Super League and establish itself as a dominant force in the sport are becoming increasingly evident.
How does the transfer of ownership of major clubs to the Public Investment Fund reflect the Saudi Arabian government’s commitment to developing and growing the sport of football in the country
Le the remaining 25% will be held by private shareholders.
The Saudi Arabian government’s investment in football is part of its ambitious Vision 2030 plan, which aims to diversify the country’s economy and promote sports and entertainment. By attracting top players and investing heavily in the football market, Saudi Arabia hopes to position itself as a global sports hub and enhance its soft power on the international stage.
These multimillion-dollar transfers have already started to make waves in the football world. The addition of Cristiano Ronaldo to Al Nassr, one of the top clubs in Saudi Arabia, not only brought attention to the league but also increased its credibility. Ronaldo’s endorsement of the Saudi league as one of the top five in the world further solidifies the country’s confidence in its football potential.
The Saudi Arabian Sports Minister’s announcement regarding the transfer of ownership of four major clubs to the Public Investment Fund is also a significant development. By taking control of these clubs, the PIF gains greater influence and decision-making power in the Saudi football landscape. This move signals the government’s commitment to developing the sport and ensuring its sustainable growth.
Looking ahead, it will be interesting to see how Saudi Arabia’s investments in football shape the global transfer market. The interest shown in Premier League and La Liga players suggests that the country aims to attract top talents and elevate the quality of its domestic league. With the financial backing of the PIF, Saudi clubs are poised to compete with some of the biggest clubs in the world for the signatures of sought-after players.
As Saudi Arabia makes waves in the world of football, it is clear that the country’s ambitions go beyond just local success. The government’s focus on sports and entertainment aligns with its broader goal of diversifying the economy and positioning the country as a global player. With its financial strength and determination, Saudi Arabia seems set to continue making headlines in the football world for years to come.
The arrival of Cristiano Ronaldo in Saudi Arabia exemplifies the country’s ambitions to make a mark in the world football market. With the potential for top-tier league status, Saudi Arabia is creating lucrative opportunities for both players and investors, propelling them onto the global football stage.