Calls to Transform 'Clubs' into Revenue-Generating Investment Entities

Club Headquarters a Step Towards Increasing Their Investments

Strategic Planning and Human Capacity Development expert Dr. Ali Mohammed Al-Hazmi affirmed that financial sustainability in the sports sector is no longer an option but an urgent necessity, pointing out that it means the sector’s ability to finance its operations and development from its own revenues, away from complete reliance on government support.

Al-Hazmi explained that the volume of spending on the sports sector within the framework of Vision 2030 has exceeded billions, and with the establishment of eighteen investment clubs and the privatization of clubs, it has become impossible to manage this sector solely through support. He stressed that what is required today is strategic planning that shifts the discussion from the question 'How much support do we need?' to 'How do we create value?' citing the project to privatize sports clubs in 2023, which linked athletic performance to commercial performance, and made six clubs operate as investment institutions managed by clear performance indicators. He added: 'Linking seventy percent of the federations’ budgets to indicators including the number of practitioners, achievements, and governance since 2021 represented a shift towards impact-based budgets rather than mere spending,' emphasizing that any club that does not link its budget to the number of beneficiaries, marketing return, and social impact will remain unable to achieve sustainability.

Al-Hazmi considered that Paralympic sports in the Kingdom have moved from volunteer work to institutional work after the merger of the Paralympic Committee within the Saudi Olympic Committee in 2021, as Vision 2030 targets focus on enabling one and a half million people with disabilities in sports, with the establishment of specialized clubs and the introduction of twelve Paralympic sports in schools and universities, noting that Saudi Arabia achieved three medals in the Tokyo 2020 Paralympics and the first Paralympic gold in its history through champion Abdul Rahman Al-Qurashi.

Al-Hazmi concluded that investment in Paralympic sports is not charity, as it is an investment in human energy that yields a multiplied impact on health and society.

Regarding capacity building and governance, Al-Hazmi affirmed that sixty percent of the reasons for the failure of sports institutions globally are due to administrative and human factors, and that a club that possesses a professional marketing team is able to triple sponsorship contracts, calling for allocating ten percent of each club’s budget to staff training. He focused on the need for new specializations in sports investment management, data analysis, governance, and compliance, stating that the sector needs a CEO mindset within each club, managing it as a company, not just as a team. He pointed out that the application of governance and transparency contributed to reducing financial waste by up to twenty-five percent, and gave an example of clubs that published their budgets, and their commercial revenues increased by forty percent.

Al-Hazmi concluded his remarks by emphasizing that sustainable championships and brands are not built by stadiums alone but by qualified minds, recommending making the player an investment ambassador, the administrator an entrepreneur, and the club a leadership school, stressing that national cadres today are the true pillar of sustainability that serves Vision 2030 under our wise leadership.