How Saudi Arabia plans to barrel to the top of global football leagues

On 22 November 2022, Saudi Arabia arguably showed they can compete internationally against the best after a 2-1 win against a top-quality Argentina team during the World Cup in Qatar.

Now the Saudi Football League, which is also known as the Saudi Professional League (SPL), and ranked 58th in the world, is bidding to join the globe’s top football leagues including the likes of Premier League and LaLiga.

Big names in the world of football are already heading to the land of oil and Muslim piety.

The Jeddah-based Al-Ittihad have signed Balon D’or winner Karim Benzema on June 6 after his contract with the Real Madrid expired at the end of the season, following a trophy laden spell at the Bernabéu. The ex-France international of Algerian heritage has said he hopes to create a lasting legacy playing for Al-Ittihad.

Romelu Lukaku, Neymar, Sergio Ramos, Angel Di Maria and Sergio Busquets and other leading players have also been linked to join various SPL clubs.

These developments follow the June announcement that Public Investment Fund (PIF), the Kingdom’s sovereign wealth fund, which has an 80 percent stake in Premier League football club Newcastle United, will take majority stakes in SPL’s top four football clubs - Al Ittihad, Al Nassr, Al Hilal and Al Ahli.

PIF’s stake in the Saudi clubs means they will be converted into companies, which then can attract private investors as part of Riyadh’s plan to boost foreign investment in sports, promote tourism and gradually reduce reliance on oil - its main source of income.

The clubs have traditionally been owned and run by government entities like various ministries, explains Salma Thani, visiting professor of international relations at the American University of Sharjah, United Arab Emirates (UAE).

“However, in recent times, the Saudi government has initiated efforts to privatize these clubs, allowing private investors to acquire ownership stakes and assume control over their management and operations,” she tells TRT World.

The privatisation process will start later in the final quarter of this year.

The change in the football clubs’ ownership structure is part of Kingdom's 2030 broader plan to shift away from hydrocarbons by diversifying its economy.

Across the domestic level, changes are afoot to give the clubs a corporate makeover.

For instance, top division club Al-Qadsiah will go to Saudi oil giant Aramco. Third tier side Alula FC will be taken over by the Royal Commission for Al-Ula, which looks after an archaeological site. And the first tier club Al-Diraiyah FC will be overseen by Diriyah Gate Development Authority.

The age of petrodollar football

These changes are geared towards making Saudi Arabia an attractive destination for international footballers, foreign investment and to bring in expertise. Saudi leadership has set their eyes on ambitious revenue targets.

SPL, estimates that its revenues will jump to $480 million by 2030 from $120 million it made in 2022. While it also projects the changes being made will help increase the market value of the league to $2.1 billion from $798 million over the same period.

Thani says a market-driven and commercially sustainable league will introduce a higher level of professionalism, efficiency, and business acumen to the management of football clubs.

Private investors bring with them expertise to manage and market, she says.

“Privatization can also inject additional financial resources. It's not that the SPL clubs lacked financial resources, but rather transparency and accountability were lacking. The new strategy of privatization will promote transparency, and private investors will bring professional management practices that can lead to more transparent financial reporting, something that has been missing in the past,” says Thani.

Previous footballing investments in the region

SPL is going for “aggressive talent acquisition” along the same lines like other football leagues have done in the past, says Nnamdi Madichie, a Rawada-based researcher who studies football business in the Middle East and Africa.

In the 2016-17 football season, the Chinese Super League (CSL) invested heavily in its domestic game which was largely funded by private capital. Notably, a number of teams were owned by large real estate businesses such as Greenland Group and China Fortune Land Development.

Players like Ezequiel Lavezzi, Hulk, Carlos Tévez, Jackson Martinez, Paulinho, Renato Gusto flocked to China alongside managers like Marcello Lippi who famously helped oversee Italy’s 2006 World Cup victory.

But Chinese ambitions appeared to fizzle out following a 2018 tax to curb club spending and exodus of high-profile players during the pandemic.

A Brazilian footprint

While the oil-rich kingdom is now actively trying to promote sports, the Saudi domestic football scene has a long history dating back decades.

The King Cup, a knockout competition, got underway in the 1950s, helping produce generations of Saudi footballers while the league itself began in 1976.

Saudi clubs have historically been overseen by the Ministry of Sports and owned by the Saudi government, reliant on hefty state funding.

“During the late seventies and the eighties, Saudi football experienced significant growth with the addition of foreign expertise. Notably, prominent Brazilian coaches such as Didi and Mario Zagallo were hired to coach Al-Ahli and Al-Hilal football clubs, respectively, in 1977 and 1978,” says Thani.

In 2008 the Saudi Arabia Football Federation, the country’s governing body, implemented a policy to recruit foreign footballers while today SPL sides are allowed to field seven foreign nationals.

“This number is expected to rise to eight, allowing more European players to compete in the league. These recruitments have aimed to develop the sport within the country and have contributed to raising the league's reputation and level of play,” explains Thani.

Today the SPL is regarded as the second strongest football league in Asia behind Japan’s J.League, with players from over 40 different nations.

The passionate football nation, where an estimated 80 percent of Saudi Arabia’s 36 million citizens either play, watch or go to games has seen attendances skyrocket close to 150 percent in the last year.

Prestigious tournaments

Across the Gulf, Thani explains there has been a regional trend whereby the UAE and Qatar have experienced "significant growth in football prestige."

Both successfully secured bids to host major international tournaments, the AFC Asian Cup and the FIFA World Cup 2022, elevating their regional status, bolstered by their developed infrastructure.

Emirati clubs have also garnered global attention following high-profile player recruitment and financial muscle.

Nevertheless, in terms of competition and historical success, Thani suggests the SPL "surpasses its neighbouring countries," becoming known for its "intense competition and has achieved greater success in the past"

"Presently, Saudi Arabia's league benefits from a larger pool of international players and greater financial resources, contributing to its economic strength. Its clubs have consistently performed well in domestic and international competitions," explains Thani.

In January 2023 Portuguese star Cristiano Ronaldo’s arrival at club Al Nassr drew global attention, raising the profile of the SPL.

Recently Ronaldo stressed the need for patience to achieve development to the SPL, suggesting some infrastructure improvements were needed.

"While Qatar and the UAE boast exceptional sporting infrastructure and training facilities, Saudi Arabia still needs to improve and develop its infrastructure to fulfil its current ambition of becoming one of the top 10 leagues globally. Investing in modern facilities is crucial to enhancing player development, improving the fan experience, and fostering overall league growth,” says Thani.

A broader bid to showcase a new Saudi Arabia and attract tourism

However, a number of factors are propelling the drive that Thani suggests include Saudi Arabia seeking to promote itself “as a modern nation and project a new image that ensures future relevance on the international stage and maintains regime security.”

She describes football as the “idea tool” to achieve such objectives as it is “universally loved sport with cross-cultural appeal and a shared set of values among its participants.”

“The football landscape has undergone significant changes, with clubs transforming into international entities with immense financial and cultural power. Saudi Arabia recognizes the opportunities provided by the sport's popularity and wants to capitalize on it to enhance its international standing,” argues Thani.

There is also the belief that Saudi Arabia aspires to host the FIFA World Cup in 2030, having already secured the FIFA 2023 Club World Cup that will take place later in December.

By extension Gulf observers also see this as a wider push to attract tourism to the Kingdom.

Financial differences to major leagues

However, there are stark discrepancies concerning finances compared to other major football leagues.

Thani suggests freedom from financial caps in the SPL entails clubs enjoying more flexibility concerning spending on transfers, wages and other expenses that help to attract prestigious talent. As such, it provides it with a competitive edge over leagues with stricter financial regulations.

She says Ronaldo’s signing aided the visibility and reputation of the SPL, as numerous broadcasting deals overseas were signed, boosting its popularity.

However, she suggests it is crucial the SPL adhere to the international governing authority "to maintain financial balance" as without regulations it will lead to disparities among clubs, as wealthier ones will dominate at the expense of smaller clubs.

"Having regulations in place is essential to ensure fairness and uphold sporting integrity. Other leagues that abide by financial regulations may perceive the Saudi Football League as having an unfair advantage in attracting top talent solely based on financial power. This perception can impact the league's and its clubs' reputation within the global football community," says Thani.

According to the Athletic, there have also been more than 50 labour disputes relating to Saudi clubs in the last year. Notably former Nottingham Forest and Norwich City player Lewis Grabban signed a one year contract for Al Ahli in August 2022 that was terminated within three months. The striker alleged he was owed some $400,000, relating to signing-on fees and two month’s wages.

Shifting perceptions about Gulf Football

However, Madichie remains sceptical of the SPL advances, suggesting it will be difficult for the SPL to penetrate the top 10 global football leagues in the foreseeable future.

“Some lessons can be learned from Qatar and the UAE in terms of brand ambassadorship including the likes of Maradona and Bruno Metsu,“ he suggests.

Madichie also describes the need to shift the perception away from the region appearing as retirement leagues “for players who have passed their prime.”

As the SPL seeks to develop, Thani says implementing change is often more challenging in practice than in theory while domestic clubs have experienced an intricate history of government intervention that has played a “crucial role” in ensuring stability and providing support.

She notes the aspiration to become a top 10 league globally requires consistent investment, long-term planning and establishing a competitive footballing framework.

“It takes considerable time for a league to establish itself among the elite, which involves building a loyal fan base, consistently achieving success in international competitions, and nurturing local talent. While hiring foreign expertise may offer short-term benefits, relying on it, in the long run, becomes unsustainable,” says Thani.