Abdullah Al-Khamis, a researcher and writer in the field of economics, praised the investment steps taken by Al-Hilal Club in recent years, represented by Al-Hilal Investment Company. Annually, in order to achieve the financial sustainability of the club’s treasury, so it established Al Hilal Investment Company in 2019 as the first Saudi club to take this step, thus transferring to it all the tasks and responsibilities of the Marketing and Investment Department, to be the investment arm of the club.”
added; According to the club’s latest balance sheet, which amounted to 706.9 million riyals, 57 percent of the club’s revenues came from the support of the Ministry of Sports and the support of golden members, and the rest of the revenues came from sponsorships and investments. To increase revenues, the club’s management reduced intermediaries with sponsors, which will contribute to increasing revenues. By 30 percent, as expected, by negotiating directly with the sponsors, Al Hilal Investment Company.
With regard to the approval of the General Authority for Competition in Saudi Arabia yesterday, regarding granting Four Hilal Trading Company, owned by Al Hilal Investment Club Company, the right to acquire the assets of Abyan Company Limited, which includes 3 brands and 4 branches; The brands include S, S Team, and Moj, while the branches represent all the stores affiliated with Al Hilal Club, he said; By virtue of the agreement signed with SM Company, which owns the rights to produce and market the club’s products in return for 50 percent of the sales, the club’s management decided to acquire it for an undisclosed amount from the main owner (Abian Unions Company Ltd.), so that the entire revenue from selling the products is 100 percent. cent in favor of Al Hilal Club.
Regarding the establishment of Al Hilal Investment Company for the Four Crescent Trading Company owned by it, Al-Khamis stressed that this step is wonderful, and comes within the investment plans that Al Hilal intends to implement, adding; Al Hilal Investment Company seeks to establish 100 startup companies during the next three years, and it has agreed with the business incubator, the “IB” Center for Innovation and Entrepreneurship, to select the appropriate companies for it in return for owning a share of 5 to 10 percent of each company, and it is now at the beginning of the road following In two startups, you own 7.5 percent of each company in return for media sponsorship.
Thursday added; We all witnessed the establishment of the work of Al Hilal Investment Company in this aspect, and that the work is not only limited to investing in the sale of products and merchandise belonging to the club, when it made the direction to invest in the real estate sector, and Al Hilal Investment Company established a subsidiary company called “Al Hilal Real Estate Company” that plays the role of investment in real estate products, in partnership with developers and real estate funds; Where, in partnership with “Returns of Financial Assets”, it launched the “Riviera Crescent Fund” with a value of 50 million riyals generating income, which is an investment in 88 housing units for a period of 4 years, at a return of 7.5 percent annually.
And on urging the rest of the clubs to go through more experiences in the investment aspect to form a strong financial basis that would be a tributary to cover expenses, he said; Opportunities are favorable for all clubs to exploit the club’s brand; As the articles of association of investment companies affiliated with clubs allow the company to establish or participate in investment, endowment, real estate and other investment funds, in addition to establishing subsidiaries inside or outside the Kingdom wholly owned by it or in partnership with local or international investors, to exploit the brand in exchange for media sponsorship only , adding; Sports investment in Saudi Arabia represents 6.5 billion riyals of GDP for the years 2020-2021, with a growth of 170 percent. Therefore, the Ministry of Sports seeks to facilitate all means and difficulties to raise the contribution of the sports sector in the country’s non-oil GDP to more than 1.2 percent.
