Saudi Arabia's Public Investment Fund (PIF) has sold a majority stake in Al-Hilal, one of the country's most prestigious football clubs, marking a significant shift in its sporting portfolio. This move comes amid growing uncertainty over the sovereign wealth fund's investment in the controversial LIV Golf league, with reports indicating a planned withdrawal after four years and billions in losses.
Details of the Al-Hilal Sale
The PIF has sold 70 percent of Al-Hilal to Kingdom Holding Company, a firm led by billionaire businessman and Saudi royal family member Prince Alwaleed bin Talal. The transaction values the share capital of the club at 1.4 billion Saudi riyals, equivalent to approximately £276.1 million. Completion of the sale is contingent upon meeting specific conditions and obtaining necessary regulatory approvals as outlined in the agreement.
In a press release, Prince Alwaleed bin Talal emphasized the cultural significance of Al-Hilal, stating, "Al-Hilal is a national symbol and a source of pride for the Saudi people. This acquisition expresses our deep belief in the power of sports as a unifying force and a catalyst for national development. By applying our global investment standards and cultivating strategic partnerships, we will unlock Al-Hilal's full potential while preserving its history and identity."
Context of PIF's Sporting Investments
Al-Hilal was one of four state-owned Saudi clubs under the PIF's umbrella, alongside Cristiano Ronaldo's Al-Nassr, Al-Ahli, and Al-Ittihad. The PIF became the principal shareholder of Al-Hilal in July 2023 as part of a broader initiative to accelerate sports club development and boost the sector's contribution to Saudi Arabia's gross domestic product.
This takeover coincided with a high-profile recruitment drive in European football, with Al-Hilal signing global stars like Neymar. Other notable players, including Karim Benzema, Sadio Mane, and Riyad Mahrez, also joined the Saudi Pro League. Benzema, the 2022 Ballon d'Or winner, later transferred from Al-Ittihad to Al-Hilal in January.
As the most successful club in Saudi history, Al-Hilal has won the top-flight championship 19 times, with six titles since 2017. Currently, the team is in second place in the Saudi Pro League this season, with 68 points from 28 games, trailing Al-Nassr by eight points but holding a game in hand.
Broader Portfolio Reassessment
The sale occurs against a backdrop of the PIF reassessing its financial priorities, particularly in light of regional tensions such as the Iran conflict. This strategic shift includes the decision to abandon LIV Golf, a rebel golf league into which the PIF has reportedly pumped over $5 billion, facing substantial losses over the years.
Additionally, the PIF has invested heavily in other major sports, entertainment, and tourism projects, such as staging major boxing events in Saudi Arabia through powerbroker Turki Alalshikh. However, recent developments suggest a pivot toward domestic objectives.
On Wednesday, Saudi Crown Prince and PIF Chairman Mohammed bin Salman approved a five-year strategic plan focused on maximizing returns and redeploying capital within the domestic economy. A press release reiterated this aim, highlighting a renewed emphasis on local economic growth over international sports ventures.
