Top Saudi football clubs splurge over $700mln in transfer, signing fees in 2023

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Brazilian football icon Neymar Junior has quit Paris Saint-Germain (PSG) to join Saudi Arabia's Al Hilal for a contract valued at $300 million and valid until 2025, becoming the latest soccer celebrity to join the oil-rich kingdom's Pro League roster.

Fans Saudi football club Al-Hilal line up to buy T-shirts bearing the name and number of Brazilian forward Neymar Jr. at the club's official store in Riyadh on August 15, 2023. Brazil forward Neymar has signed for Saudi Arabia's Al-Hilal from Paris Saint-Germain, the clubs announced today, joining Cristiano Ronaldo and Karim Benzema as the latest big name lured to the oil-rich Gulf state. (Photo by Fayez Nureldine / AFP) (Agence France-Presse (AFP)/AFP)

In May, Christiano Ronaldo left Manchester United and signed a $200 million per year deal with Al Nassr, which showed the world that Saudi football is looking for a global audience and that the kingdom is focusing on sports as an important pillar of economic diversification.

The top 20 stars purchased by the five clubs since January cost a total of more than $700 million in transfer and signing fees, as well as a commitment to spend $1.1 billion per annum in wages, Global SWF said in a report.

The average age of the transferred players is 30. With the average retirement age of professional players at around 35, the Saudi teams have invested heavily in ageing players rather than pouring money into rising talent, the sovereign wealth fund tracker said.

An employee of the Saudi Al-Hilal football club official shop displays a freshly-printed T-shirt bearing the name and number of Brazilian forward Neymar Jr. in Riyadh on August 15, 2023. Brazil forward Neymar has signed for Saudi Arabia's Al-Hilal from Paris Saint-Germain, the clubs announced today, joining Cristiano Ronaldo and Karim Benzema as the latest big name lured to the oil-rich Gulf state. (Photo by Fayez Nureldine / AFP) (Agence France-Presse (AFP)/AFP)

Saudi Arabia aims to become a top-ten league by 2030 with an annual revenue rise from $120 million to more than $480 million, and an increased market value from $800 million to at least $2.13 billion.

The kingdom is planning to privatise several state-owned sports clubs from the fourth quarter of 2023, a landmark move to foster the kingdom's investments in the sport.

Sovereign wealth fund, PIF, will take control of four of the kingdom's top clubs including Al-Nassr. The PIF will own 75% of al-Ittihad, Al-Ahli, Al-Nassr, and Al-Hilal.

Nassr's Portuguese forward #07 Cristiano Ronaldo runs after the ball during the 2023 Arab Club Champions Cup final football match between Saudi Arabia's Al-Hilal and Al-Nassr at the King Fahd Stadium in Taif on August 12, 2023. (Photo by AFP) (Agence France-Presse (AFP)/AFP)

“The transfer of the four clubs will unleash various commercial opportunities, including investment, partnership, and sponsorships across numerous sports,” the PIF said.

The giga project NEOM is also expected to become a global sports destination for major events and athletes.

In February, Saudi Arabia was awarded the hosting rights to stage the AFC Asian Cup 2027. The kingdom will also be hosting the 2029 Asian Winter Games.