The “Investment Fund” is paving the way for the sale of 70% of Al-Nasr Club... and talks with “Redbird”

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The Saudi Public Investment Fund is in talks to sell 70% of its stake in Al-Nasr Club to Redbird, according to Semaphore.

According to "Semaphore", these plans come as the Public Investment Fund seeks to pay off Al-Nasr Club's debts amounting to $213 million.

The sources said that the fund is working to arrange commercial sponsorship agreements with companies affiliated with its investment portfolio with the aim of strengthening the club’s financial position and improving its balance sheet, which may facilitate the completion of a potential deal to sell a stake in the club to investors led by Redbird, which owns the Italian club AC Milan.

One source explained that Redbird's interest is still in its early stages, while negotiations may not necessarily lead to a final agreement.

The sources added that company representatives held at least two meetings with the Public Investment Fund to discuss the acquisition of a 70% stake in the club.

According to the sources, the Redbird alliance and its partners will pay about one billion riyals ($267 million) for this stake, while Cristiano Ronaldo is expected to own a 20% stake in the club. The list of investors may also include SMC, a private company based in Riyadh that works in the media, sports and entertainment sectors.

The sources confirmed that the final terms of the deal have not yet been decided, and are still subject to change as negotiations continue between the parties concerned.

The potential talks to sell 70% of the Public Investment Fund’s stake in Al-Nasr Club Company come within the framework of the Fund’s direction towards maximizing returns and recycling capital in the local economy, in a way that supports its investment strategy aimed at achieving sustainable value from its various assets and investments.

On April 26, the Fund had previously signed a binding agreement to sell 70% of the total capital of Al Hilal Club Company to Kingdom Holding Company, based on an establishment value of 1.4 billion riyals for the entire club’s capital, in a step that reflects its orientation towards restructuring the ownership of sports clubs and enhancing the role of the private sector in developing them.

The Public Investment Fund had become the main shareholder in Al Hilal Club Company in July 2023, as part of the investment and privatization project for sports clubs, which aims to accelerate the development of Saudi clubs, raise the efficiency of their management, and increase the sports sector’s contribution to the Kingdom’s gross domestic product.

During its ownership period, the Fund, in cooperation with the club’s executive management, led a transformation process that included developing governance, infrastructure, facilities and operational performance, in addition to enhancing commercial revenues from sponsorships, product sales and match revenues, which contributed to raising the club’s commercial value.

These moves are consistent with the goals of Saudi Vision 2030, which aims to develop the sports sector and enhance its economic sustainability, by attracting private investments, diversifying revenue sources, and transforming clubs into more efficient investment entities capable of growing and competing locally and internationally.