Ronaldo a Potential Partner in Redbird's Acquisition of 70% Stake in Al-Nassr

Saudi Arabia’s Public Investment Fund (PIF) is seeking to settle Al Nassr’s debts, which amount to approximately 800 million riyals ($213 million), paving the way for the sale of a majority stake in the club, which features Portuguese star Cristiano Ronaldo, according to the US-based media outlet Semafor.

Citing informed sources, Semafor reported that Redbird Capital, the US firm that owns Italian club AC Milan, held at least two meetings with the PIF to discuss acquiring a 70% stake in Al Nassr, in partnership with other investors, for around 1 billion riyals ($267 million).

According to the sources, the proposed ownership structure would grant Ronaldo a 20% stake, with the possibility of Saudi Media Company (SMC), which specializes in media, sports, and entertainment sectors, joining the investment alliance.

Negotiations are still in their early stages, with no final agreement reached on the deal’s terms. A source close to the PIF indicated that the transaction might not be completed.

Debt settlement and revenue enhancement

According to the report, the PIF is arranging commercial sponsorship contracts for Al Nassr with companies within its investment portfolio, aiming to generate financial resources that would help settle debts and improve the club’s financial standing ahead of a potential change in ownership.

Neither Redbird Capital nor the PIF commented on the information in the report, and Semafor did not receive an immediate response from club representatives or Ronaldo.

In September last year, Bloomberg Arabia reported that negotiations were underway between the PIF and a Redbird-led consortium to buy a stake in Al Nassr, noting that investors were seeking to involve Ronaldo in the deal, based on a clause in his contract that grants him priority to acquire a 20% ownership stake when the club is offered for private investment.

Expanding investor role in clubs

These negotiations come as part of Saudi Arabia’s efforts to increase private sector participation in the ownership of sports clubs, following years of spending on attracting global stars and enhancing the commercial presence of the Saudi Pro League.

Ronaldo entered the club ownership investment arena last February by acquiring a 25% stake in Spanish club Almería through his company CR7 Sports, in a deal with the Saudi SMC group, which owns the club.

Previously, the PIF completed the sale of a 70% stake in Al Hilal to Kingdom Holding Company, owned by Prince Alwaleed bin Talal, in September last year, for 840 million riyals ($224 million). The deal valued the club’s total ownership rights at approximately 1.2 billion riyals ($320 million).

If the Al Nassr deal is finalized, investors are expected to leverage Redbird’s network of commercial and media partnerships to reduce costs and diversify revenue streams, while also boosting the club’s presence in the US market.