Saudi Arabia’s Pro League Makes Historic Summer of Spending in Soccer Transfers
Saudi Arabia’s Pro League has made headlines in the soccer world as it emerged as the second-highest spender on transfer fees, trailing only the English Premier League, according to data from Transfermarkt. The league spent a staggering 954 million euros ($1 billion) solely on bringing players in, surpassing four of the “big five” soccer leagues in Europe.
Despite facing some setbacks, including failed high-profile deals such as a late bid from Al-Ittihad for Liverpool star Mohamed Salah, the Saudi clubs have managed to make significant investments. The country’s four largest clubs, Al-Ittihad, Al-Ahli, Al-Nassr, and Al-Hilal, have been majority-owned by the Public Investment Fund since June, contributing to the substantial spending.
Of the top 10 spenders in the world, three are owned by the Public Investment Fund, with the four Saudi clubs collectively spending 835.1 million euros on transfers. However, they generated only 4.86 million euros from incoming transfer fees, highlighting their significant net spending. Al-Hilal, in particular, emerged as the biggest net spender among all clubs globally.
Speaking about Saudi Arabia’s interest in sports investments, Yasir Al-Rumayyan, the Governor of the Public Investment Fund, emphasized the young population’s role in driving such investments. With 63% of Saudis being under 30 years old, the country sees sports and entertainment as part of its offering to engage the youth. Al-Rumayyan also emphasized the importance of financial returns in their investment decisions, prioritizing sustainability.
However, the high levels of soccer investment from Saudi Arabia and other Middle Eastern countries have drawn criticism from human rights groups and activists. Accusations of “sportswashing” have been leveled at Saudi Arabia, questioning the true intentions behind their investments in the sport.
As the Saudi transfer window concluded, attention was once again drawn to the future of English club Manchester United. Reports suggested that the Glazer family, the club’s owners, are aiming for a valuation of up to £10 billion ($12.5 billion) by delaying any sale until 2025. Despite no public Saudi interest in acquiring Manchester United, the expectation of significant longer-term spending from the kingdom is likely to boost valuations across European clubs.
The impact of Saudi Arabia’s soccer investments was a topic of discussion at the European Club Association’s General Assembly this month. Nasser Al-Khelaifi, Chair of the association representing 220 European soccer clubs, expressed confidence in the European competition’s supremacy, dismissing concerns about the Saudi league’s potential impact.
Even with potential ambitions of playing in the top-tier Champions League receiving cold shoulders from European club competitions, Saudi Arabia’s soccer push is expected to continue. Hosting this year’s FIFA Club World Cup in December is a significant milestone for the country, with potential matchups between Al-Hilal and Manchester City capturing attention. Saudi Arabia is also reportedly targeting the hosting rights for the 2034 World Cup, further showcasing its aspirations in global soccer.
While previous challengers like China’s Super League have faltered due to financial concerns amidst the COVID-19 pandemic, Saudi Arabia’s continued investment could potentially shake up the world’s most-watched sport. Only time will tell how these long-term ambitions will unfold and if Saudi Arabia will manage to make a lasting impact on soccer.