What does Saudi Arabia's new privatisation plan for football clubs mean?

Saudi Arabia is pushing ahead with its plans to bring in more changes to its football structure with the announcement of privatisation plans for six more clubs.

The kingdom's ministry of sport has launched the latest phase of the 'sports clubs investment and privatisation project' to bring in fresh investment at 14 more clubs.

Six clubs will now be available for investments starting in August - Al Zulfi, Al Nahda, Al Okhdood, Al Ansar, Al Orouba, and Al Kholoud. The clubs have been selected based on their operational readiness, financial health, administrative capabilities and athletic facilities.

After that process is completed, eight more clubs - Al Shoalah, Hajar, Al Najmah, Al Riyadh, Al Rawdhah, Jeddah, Al Taraji, and Al Sahel - will also be up for privatisation at a later stage.

It marks the next stage in the transformation process of Saudi football which started last year when Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, took control of four of the country’s most prominent football clubs.

The PIF acquired majority stake in Al Hilal, Al Nassr, Al Ittihad and Al Ahli, ushering in a new era in Saudi football that saw it become one of the new main centres of the sport.

Saudi Pro League thus became one of the most high profile leagues in the world, attracting the biggest names with record deals.

Earlier this year, vice-minister of sport Bader Alkadi said that the kingdom was preparing for a fresh wave of private investments.

“We expect to have another wave of privatisation coming up soon,” Alkadi told Bloomberg in March. “That gives us opportunity to make the investment in sport a sustainable investment.”

Until now, the Saudi PIF has been the main player driving up investments in football and other