The sale of Saudi Arabia’s Al-Kholood Club to a US-based venture capitalist marks a potential turning point for foreign investment in the Saudi Pro League as the kingdom accelerates efforts to privatise its sports sector.
The club was acquired by Harburg Group, the Ministry of Sport and the National Center for Privatisation & PPP said in a joint statement.
Harburg Group, led by US investor Ben Harburg, also owns a stake in Spanish football club Cádiz CF.
Harburg is managing partner at MSA Capital, also known as Novo Capital, a Beijing-based global investment company managing $2 billion in assets, which is supported by Saudi Arabia’s $1.15 trillion Public Investment Fund (PIF).
The financial terms of the deals were not disclosed.
Simon Chadwick, professor of AfroEurasion sport at Emlyon Business School in Lyon, said: “If there is evidence of stability and improved financial performance, the Al-Kholood acquisition could become a prelude to further overseas investments in Saudi clubs.”
Alexander Jarvis, founder of UAE-based Blackbridge Sports, agreed: “With Europe saturated and valuations stretched, Saudi Arabia’s privatisation push offers a compelling frontier for global capital. Expect other Americans to follow.”
Reuters/Hamad I MohammedThe ministry is currently seeking new expressions of interest from investors for other Saudi sports clubs.
However it confirmed that proposals for Al-Nahda Club are under review after investors sought an extension to the deadline. Meanwhile, investors interested in Al-Okhdood and Al-Orobah Clubs failed to meet the requirements and conditions.
In June 2023 Crown Prince Mohammed bin Salman revealed plans to transform the Saudi Pro League into a SAR8 billion ($2.1 billion) entity by the end of the decade.
The project – part of the Vision 2030 strategy to diversify the country away from an oil-based economy – aims to privatise all Saudi sports clubs.
PIF will take control of four clubs, including Al-Ittihad and Al-Nassr.
The sovereign fund also owns 75 percent of Al-Ahli and Al-Hilal, while the oil company Aramco owns Al-Qadsiah and the Diriyah Gate Development Authority is taking on Al-Diraiyah FC.
Al-Zulfi Club and Al-Ansar Club have been bought by Saudi-based Nojoom Al-Salam Company and Oudah Al-Baladi & Sons Company.
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