1 Day
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الاقتصادية
Saudi club privatization plans vary
Legal and financial studies indicate that the high financial obligations of Saudi clubs, such as Al-Nassr which owes approximately 800 million riyals, do not fundamentally hinder the privatization process. Experts affirm that investors evaluate obligations within an integrated framework that includes future revenues, brand strength, and sporting and commercial assets, rather than focusing solely on the size of the debt. There are four scenarios for addressing these obligations: transferring them to the investor in exchange for a reduction in value, settling them before the sale, restructuring the debts, or combining these options. The structuring of the deal is the crucial factor in the success of the acquisition, not just the level of indebtedness. Global experiences, such as Chelsea and Manchester United, confirm that obligations are managed within the restructuring process, provided that other attractive elements like revenues and assets are present. This demonstrates that obligations are not an obstacle in themselves.
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