Bogged down clubs in debt .. and sports investments and they are!

THE club Saudis have entered the world of professionalism, have enacted regulations and laws to enhance the professional scene, but the club they are still limited in their investments and have relied on the support they receive from the Ministry of Sports, contenting themselves with advertising advertisements on players’ shirts, as one of the most important means of investment, if not the only way.

For many years and we are still shooting in a vicious circle, debts bind i club, in change, the governance supports them, provided that the required system is applied and the certificate of financial efficiency has arrived, to demonstrate that the club they are suffering to achieve a budget, expenses are greater than income, and the solutions available require specialists and experienced people to guide club to these solutions.

Al-Madina tried to investigate the opinions of specialists regarding the limited investment in club Saudis, who are limited to advertising, and a shop is closed and closed.

Some were discussing the Corona pandemic and that it was the reason to stop the investments, but the question, what about a period before Corona, was the convincing investment, and our question is renewed, what after the Corona pandemic we will see real investment in club, or will the situation remain as it is ?! .

What did the experts say ?!

Bashi: Duplication and paralysis are the cause of failure

Economist Ghassan Bashi considered that marketing and investing are two similar lines, the first is that money is spent on profitable returns, the second is that you have assets or savings and want to develop them.

He added, i club they are interested in managing an investment, and the first is the presence of a marketing department, as it is the key to the success of any investment. Previously I had raised the topic under the title “Marketing: The Missing Element in the Financial Development System.” club”, followed by another topic in I was talking about the activation of membership cards. And indicated that the logos of the club are the most important revenue and that administrations should register it as a trademark and stop tampering with it, as is the case now.

Bashi has revealed the reasons for the weakness of the sports investment that is due to the leaders of the club, in how much the functions of the president of the club are no longer known among the duties of the CEO, and this duplication is one of the most important reasons for the weakness of the whole system, as well as the paralysis of the president, which makes him choose inactive people and you will not find in all the club a fundamental investment plan except for Al Hilal It is the most organized.

Journalist: the Saudi market is promising and needs to be privatized

Majed Al-Sahafi, member of the Board of Directors of the Jeddah and Head Chamber of Commerce of Sports Investment, felt that the Saudi market is still in growth phase, and is one of the most important global markets due to the ingredients it possesses successfully to attract companies and sponsor club Saudis.

He added, the investment elements we have, from international stadiums, and the passion of the masses for sport, which makes the land fertile for investment.

However, the reporter added, “But if there are devices specialized in marketing and sports investments in club and bring long-term partnerships and sponsorships.

He explained that there are experiences of some illustrious administrations of club, which gave positives and strong revenues through the way of attracting many investors and making distinct partnerships and strong legislation that gave satisfaction between the two parties, and some club I’m not yet in able to achieve the desired for them, knowing that they have all the ingredients for success, but the Marketing of the administrations, in many cases, it is considered the first obstacle, in how not competent.

The reporter pointed out that all club they have been affected by the Corona pandemic, worldwide, which is a pandemic that has cast a shadow over many global investments, but the sports movement is soon back with the masses returning to rise again.

The reporter concluded by saying that the privatization of club is the best solution to ensure the success of sports investments.

Al-Hammad: You have to try English

Abdul Rahman Al-Hammad, vice president of Al-Fateh Club and general supervisor of investments in the club, explained that the beginning of the sports marketing and investment file is the creation of companies for club specialized, noting that we are still in his Al-Hammad indicated that the British government sustained the experience there for about 10 years, until the marketing value of the English league increased, as well as mass participation in matches in that moment and the monitoring of the audience through broadcast television, in one moment in which the world did not yet know about cryptography.

Al-Hammad asked for patience with the Saudi experience, in this file, until it bears fruit, through continued support until the Saudi League reaches an attractive level.

The investment officer in Al-Fateh Club pointed out that one of the most important solutions to strengthen marketing and investment is having a strong league and massive audience presence, as well as increasing the number of viewers through an unencrypted broadcast and being easy, both at the inside or outside the Kingdom, to bring sponsorship contracts to club, and this will only be done in continuously Support the Ministry of Sport.

Al-Hammad said: The second phase of investment development will take place through the privatization of club, who will be fully responsible for the investment file, and this is the most important step.

Al-Fateh’s vice president explained that while talking about the success factors of investments, it is necessary to mention the obstacles to success so far, which are:

Administrative instability in club.

The inability to sign long-term sponsorship contracts for 10 years because the short ones are not beneficial to companies.

– Television broadcasting, a key partner in this file, and unfortunately in this season we see that the Saudi League has been encrypted.

Agag: This is the recipe for success

Abdullah Ajaj, former director of investment management at Al-Ahly Club, confirmed that sports marketing and investment is one of the most important issues that are constantly raised in our sports community.

Ajaj responded to Al-Madina to the ever-repeated question about the reasons for the unsuccessful sports investment departments, saying: “One of the most important reasons why sports marketing appears with these unsatisfactory results and numbers is the fear of many companies and investors. who enter in sports investments, due to the lack of administrative skills with scientific qualifications and experience in this field.

He continued: “The takeover of the club often increases investor concerns, as administrative stability is always the key to the success of any project. “

He added: There is an important reason, which is the lack of clarity in sports investments in club, in contrast to the more obvious real estate investment.

Ajaj revealed an important reason why sports investment failed to reach its goal, namely the lack of experience in the field of advertising and sponsorship. in many departments that rely on personal relationships to bring sponsors, in one moment in which marketing and commercial advertising is a reliable science.

Agag explained that marketing in the club, which is closely related to investments, takes place without a mechanism or a clear reference to customers, and depends mainly on personal judgment.

Abdullah Ajaj presented urgent solutions for the success of sports investments, in several points, namely:

The need to have scientifically qualified and experienced professional departments in the Saudi advertising market, not just to pay the salaries of the players and so via.

– Benefit from the brand of club, identify the products of the club and study the feasibility of these products.

By separating the investment management from the management of the club or by activating the investment companies of the club to manage marketing and investments and support them with specialists who are far from business football, for example, and that their work should be institutional work with a clear strategy.

Support the Ministry of Sports for companies specializing in sports marketing who possess the scientific skills and competencies to build the sports investment industry.

– I. club must be privatized because without it, i club they will not be in able to operate and activate their products, for example, but not limited to, by selling tickets online or in the stadiums, products and shirts and accessories of the club and manage them through the store or through distribution and sale online, sale of sponsorships, increase in media content in the media, which is considered one of the income of club if activated in scientific way.

Dr .. Abul Ela: Administrative stability is the key to success

Former officer of the Al-Ahly Club Investment Committee, currently investment supervisor at Jeddah University, Dr Omar Abul-Ela, explained that when certain crises occur and the sports community is a partner, the impact of the crisis that has occurred is far-reaching, so whether the Corona virus ends or not, its impact will not end once the virus, Corona has an impact on the weakness of marketing and investment in club.

He said: “There are two other important factors in the weakness of the investment side. The first factor is my mind in the committee responsible for the investment file. in every club. Some prefer not to choose small companies because of the reputation of the club. and its size in the sports community. Bringing sponsorship from other small businesses, in so you have in followed a large amount of money. “He added:” On the other hand, each investment committee must provide a private company for investment and marketing matters, which on the other hand gives the final decision, so the tasks of the company are to provide sponsorships and the companies they take care of club in all its games and categories, and this will greatly help the investment committee in investment growth and marketing for the club, and the point The most important thing is stability, administrative stability is necessary for each club for marketing success to come.

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