Al-Nassr is facing a severe financial crisis, according to media reports citing a Saudi outlet, while owners of the Public Investment Fund (PIF) have responded by pulling the plug on new spending and imposing a transfer ban.
According to reports, a source close to the PIF confirmed to Al-Riyadiah that the club’s liabilities have now climbed past 800 million riyals, roughly 213 million US dollars.
Reports added that the financial hole stems entirely from poor decisions made last season, and it has placed the club under strict supervision from the Saudi Professional Football League.
The PIF has now stepped in with immediate measures to stop the debt from growing further. The most significant of the steps strips the club’s operational management of its ability to act freely. Asked directly whether the current leadership can agree on new contracts for next season, the source gave a clear answer.
“Yes, there will be no contract agreements as long as the management does not provide liquidity from the club’s revenues,” the source said.
That means Al-Nassr’s leadership in Riyadh cannot sign any new players until they can prove they have the necessary funds through sponsorship income or other club revenue streams.
According to the reports, the PIF’s restructuring plan rests on three pillars. Alongside curbing the financial powers of the current leadership, the fund has brought in independent financial, business and legal advisory firms. Those firms are tasked with finding ways to boost commercial revenue, cut spending and build a timed roadmap back to financial sustainability.
The third pillar concerns ownership. The PIF is currently weighing two serious offers to take a stake in Ronaldo’s club, and the fund is said to favour a partial takeover over a full sale.
According to the source, the goal of the steps is “to preserve the club’s financial, fan-related and marketing-related value, prevent the debt from doubling and strengthen compliance with the applicable governance rules.”
Those governance rules extend beyond Saudi Arabia. Ownership of the PIF’s sports holdings falls under the oversight of FIFA and other football associations. To ensure fair competition between the various clubs it owns, the fund is legally required to spread its financial support evenly and is barred from directly interfering in sporting decisions.
The club is yet to comment on the reports.
