Earlier this week, it was reported that RedBird Capital – the American investment firm that holds stakes in AC Milan and Toulouse FC – are exploring a deal to purchase 70% of Saudi Pro League club Al Nassr for around $267m.

Under the reported terms, Cristiano Ronaldo would take a further 20% of the club.

If the deal goes through, RedBird will become the second American group to own a Saudi club. They would follow the Harburg Group, who in July 2025 purchased 100% of Al Kholood.

Why are sophisticated American investors such as RedBird and the Harburg Group choosing to buy Saudi football clubs, as opposed to teams in the more established markets of England, France, Italy or Spain?

The simplest answer is value. Saudi clubs are priced far cheaper than clubs in the top five leagues. If Al Nassr transacted at the valuation which RedBird is reportedly discussing, then it would be trading at around a value of 2.3x its revenue. Al Hilal – 70% of which was sold to Saudi businessman Prince Alwaleed bin Talal’s Kingdom Holding at a reported $373m valuation earlier this year – traded at a 1.1x revenue valuation.

Compare this to recent Premier League deals, and the comparative value for money in Saudi Arabia becomes clear. Liverpool, Manchester United and Chelsea have all transacted in the past five years at valuations which are more than 5x their revenue.

For American investors like RedBird and the Harburg Group, the thesis is simple: buy into Saudi clubs at a comparatively low valuation, and wait for global interest in Saudi football – and with it, the value of its clubs – to grow.

The Saudi government’s commitment to growing the global appeal of football in the country is likely another factor behind American interest.

The 2034 World Cup will be held in the Kingdom, across 15 stadiums in five cities with eight being specially built for the World Cup. The 2025 Club World Cup was sponsored by the country’s Public Investment Fund (PIF), who also are the owners of Newcastle United. PIF has gone further still by buying into the channels through which football reaches its fans: it took a stake in the broadcaster DAZN and is leading the takeover of Electronic Arts.

The influence which the Saudi government now holds at different levels of the football ecosystem – from federations through to clubs and broadcasters – would give confidence to any investor that the Saudi domestic league is perfectly positioned to grow in global scale and influence over the coming years. In effect, an investor is buying into a league that has every possible advantage in challenging the hegemony of European football.

Yet, there are recent signs to suggest that the Saudi government’s commitment to sport is less iron-clad than first thought.

Saudi clubs have radically reined in their spending in recent windows. Al Nassr made only one signing this summer – defensive midfielder Samu Costa for a reported €22m. Compare this to the summer of 2023, when the likes of Sadio Mane, Aymeric Laporte and Otavio were purchased for over €100m cumulatively, and it is clear that spending is being curtailed in the Kingdom. The ending of funding for LIV Golf, and the omission of sport as an area of focus from PIF’s published 2026-2030 strategy, all also indicate a cooling of interest from the Saudi government in sport.

This pullback from sports investment by the Saudi government makes RedBird’s reported interest in Al Nassr particularly intriguing. If sport is becoming less of a priority for Saudi, then now may be the optimum time to purchase a club with the Saudi government particularly motivated to divest. The question however remains whether the Saudi Pro League can achieve the purported growth that investors are banking on, without the Saudi government’s iron-clad commitment to growing the global influence and attractiveness of Saudi football.

Regardless, the direction of travel is clear. The Saudi state appears willing to keep building the stage – the World Cup, the broadcast deals, the FIFA partnerships – while handing the cost of running the clubs to private owners. For American investors, that is both the opportunity and the risk: they are buying cheaply into a league whose biggest backer is stepping back from paying the bills.