JEDDAH, 22 December 2006 — With a potentially rich market waiting to be developed investment in sports venues around the Kingdom is being encouraged and promoted by the government as it vigorously pursues the policy of privatization of sports clubs.
Dr. Khalid Al-Bahouth, general manager, Department of Investment and Club Privatization of the General Presidency of Youth Welfare, said the market potential is huge with around 13 stadiums spread across the Kingdom with a capacity that ranges from 20,000 to 100,000 spectators.
“Investment in the sport venues is increasing rapidly,” said Al-Bahouth. He explained since Prince Sultan ibn Fahd, president of both the Youth Welfare and Saudi Soccer Federation and his deputy, Prince Nawaf ibn Faisal, approved to cede the marketing privileges to the clubs for the first division and matches this season, the clubs benefited a lot.
Before, the profit derived from the matches played on the clubs’ stadiums, he said, used to go to the Youth Welfare sport fund which nets SR 250 million annually including TV rights.
Under the new setup, the income goes to the club coffers with 10 percent to the Saudi football fund, 5 percent to sport fund at the Youth Welfare and 5 percent to the stadiums, according to Al-Bahouth.
Furthermore, for the time being, each club also has full charge of printing, marketing and selling their matches’ tickets with the supervision of the Youth Welfare, “ and there are plans in future to sell season tickets at special rates,” he said.
The clubs also are in control of the income from food and beverages being sold during matches at the stadiums.
Al-Bahouth said they encouraged the clubs to develop their own marketing ideas and make money on the side.
One crucial thing is that they keep on advising club managers and administrators to register their trade mark at the Chamber of Commerce and Industry so that the Anti-Commercial Fraud Administration could secure their products and logo.
Attracting the private sector is very important as its participation will help improve the sports here, said Al-Bahouth, adding the Youth Welfare has been spreading cultural awareness on the importance of sports investment and marketing and that they are also encouraging the private sector and businessmen to establish stadiums in all districts and cities as much as possible.
“I do not believe the Youth Welfare will stop supporting the clubs financially in the near future, but the support might decrease gradually with the clubs that are now improving and developing on their own,” Al-Bahouth said of the Youth Welfare’s plan.
