1 Day
Source:
الاقتصادية
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Saudi club privatization options
The article clarifies that the significant financial obligations facing Saudi clubs, such as Al-Nasr which is facing debts estimated at around 800 million riyals, are not a legal obstacle to privatization. Instead, they mainly impact how the deal is structured and its financial valuation. It explains that investors view the obligation framework comprehensively, assessing its nature, the club's future resources, the strength of its brand, and its assets before making a takeover decision. There are four scenarios for addressing these obligations: transferring them to the buyer, settling them before the sale, restructuring with creditors, or a combination of these, with the final decision depending on the results of financial due diligence and legal conditions. Global experiences confirm that obligations do not prevent acquisition if the club’s value and financial stability are attainable, as the success of the deal depends on the club’s ability to generate sustainable revenues and convert its assets into investment value.
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