Saudi Pro League ownership shake-up as PIF takes full control of three clubs

Saudi Arabia’s Ministry of Sport has announced the start of a major ownership transfer involving Al Nassr, Al Ittihad and Al Ahli, with the Public Investment Fund set to take full control of the three clubs.

The ministry said on Wednesday that it had begun transferring the shares held by the clubs’ non-profit institutions to the Public Investment Fund (PIF). Those institutions currently represent 25% of the shares in each of the four leading Saudi clubs: Al Hilal, Al Nassr, Al Ittihad and Al Ahli.

Once the required regulatory procedures have been completed, the boards of the non-profit institutions at Al Nassr, Al Ittihad and Al Ahli will be dissolved. The move means PIF will become the full owner of the three clubs.

The decision is regarded as the second stage in the wider process of transferring ownership of the four major clubs, according to Saudi newspaper Asharq Al-Awsat. It forms part of the objectives of Saudi Arabia’s sports-club investment and privatisation project.

The existing boards of the clubs’ companies will continue to carry out their responsibilities during the current phase until their terms expire. That arrangement also applies to members who were appointed by the non-profit institutions.

At the same time, employees of PIF will resign from their positions as chairmen of the clubs’ executive committees. The resignations are intended to comply with regulations linked to maintaining competitive fairness between the clubs.

Al Hilal is the only exception among the four leading clubs. In April, 70% of the club’s shares were transferred to Kingdom Holding Company, which is owned by Prince Alwaleed bin Talal.

Ownership of Al Nassr, Al Ittihad and Al Ahli is also expected to be transferred to a group of investors and businesspeople in the coming period. That process would complete the planned privatisation of the leading clubs in the Saudi Pro League.

The latest announcement therefore represents a further restructuring of the ownership model surrounding Saudi Arabia’s most prominent football institutions. It separates the role of the non-profit organisations from the operating companies while preserving the current club-company boards until their existing terms come to an end.

The transfer also marks a new step in the implementation of Saudi Arabia’s plans for investment in and privatisation of sports clubs. While PIF will assume full ownership of three of the four clubs covered by the announcement, the ownership structure at Al Hilal remains different because of the shareholding held by Kingdom Holding Company.

The next phase is expected to focus on the arrival of investors and business figures at Al Nassr, Al Ittihad and Al Ahli, completing the ownership changes for the four clubs regarded as the biggest in Saudi football.