Saudi Arabia Turns to Privatization to Propel Pro League Ambitions

Saudi Arabia’s big-spending soccer league is taking its next strategic step toward global prominence: privatization. Following a record-breaking transfer spree that drew international superstars like Cristiano Ronaldo, the Saudi Pro League is shifting from heavy state funding to private ownership in a bid to professionalize its structure, ensure financial sustainability, and align with the country’s Vision 2030 diversification goals.

Spending Spree Sets the Stage

In 2023, Saudi Arabia stunned the soccer world by spending more than $1 billion on player transfers, luring talent away from Europe with lucrative contracts. That spending thrust the Pro League into the global spotlight. While expenditures have since eased, the league has already spent $486 million on transfers this year, underscoring its continued ambition to compete with established European leagues.

This lavish outlay was underpinned by the Public Investment Fund (PIF), the kingdom’s sovereign wealth vehicle, which financed marquee signings and infrastructure improvements. With the Pro League’s profile now firmly established, Saudi authorities are redirecting their focus toward long-term strategies designed to sustain momentum and reduce reliance on public spending.

Person kicking a football | Source: Pexels

Pivot to Privatization

Over the summer, the Ministry of Sports and the PIF opened the door to privatization, inviting outside investors to acquire stakes in clubs. Three teams have already been sold to private entities. The first foreign acquisition was finalized in July, when U.S.-based Harburg Group purchased Al-Kholood. Reports suggest that the government is also exploring sales of its holdings in the league’s “big four” clubs.

Kieran Maguire, host of the Finance of Football podcast, told CNBC that privatization is a natural next step: “The PIF has already done the initial investment” in infrastructure and talent, but moving forward, private ownership could reduce state exposure. Still, he warned that “it is difficult for owners to make a profit from running a club,” describing the strategy as “high risk.”

Financial and Strategic Drivers

Analysts point to financial sustainability as a key driver of privatization. Kristian Coates Ulrichsen of the Baker Institute noted that after the 2023 transfer spree, “a slowing down of major new player acquisitions” has forced clubs to operate within tighter budgets.

Paul Williams, co-host of The Asian Game podcast, highlighted broader fiscal adjustments in the kingdom: “Spending $1 billion each year is clearly unsustainable,” he said, adding that the league is now exploring ways to “limit the amount that clubs can spend.”

For investors, sustainability is also central. Ben Harburg, the new owner of Al-Kholood, told CNBC that Saudi clubs “can’t keep dumping money into clubs that are burning it every year.” He argued that developing local talent and selling them on to bigger clubs is a more viable model, similar to systems used in Europe.

Ulrichsen added that foreign owners can also contribute credibility and international networks, while injecting capital into training facilities and professional structures that make the league more attractive to top players.

A soccer game | Source: Pexels

Beyond Soccer

Privatization is seen as part of a broader economic strategy tied to Vision 2030, Saudi Arabia’s blueprint to diversify away from oil dependency. With the kingdom set to host the 2034 FIFA World Cup, soccer is central to its cultural and economic ambitions.

The Road Ahead

Saudi authorities are betting that privatization will bring expertise, accountability, and global reach to their domestic league, raising its standards and international reputation. Williams noted that the ultimate aim is to develop Saudi talent for Europe’s top leagues, which in turn would raise the domestic game’s prestige and support ambitions of World Cup success.

As Saudi Arabia balances spectacle with sustainability, its privatization push marks a pivotal moment. Whether the strategy succeeds will determine if soccer can truly serve as a catalyst for the kingdom’s transformation beyond oil.