Soccer privatization: A template for Saudi reform
By James M. Dorsey Saudi Arabia has approved the privatization of state-owned sports clubs as part of Deputy Crown Prince Mohammed bin Salman’s drive to streamline bureaucracy, curb public spending, diversify the kingdom’s oil-dependent economy, and upgrade its autocracy. The effort to clean up the sports sector follows the rare admission earlier this year of a match-fixing scandal as well as a financial crisis that offered a glimpse of the daunting task and pitfalls involved in Prince Mohammed’s reform plan. The kingdom’s Council of Economic and Development Affairs (CEDA) headed by Prince Mohammed earlier this month ordered sports authorities to create a fund that would provide loans to financially troubled clubs. The council said the fund would create 40,000 new jobs but offered no further detail. Similarly, few details were provided about how the clubs, some of which are controlled by members of the ruling Al Saud family, would be privatized beyond a statemen...