Cristiano Ronaldo and AC Milan in talks to buy Al-Nassr

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Tom Weber | Writer

Cristiano Ronaldo and AC Milan's owners, RedBird Capital Partners, are in talks to acquire Al-Nassr following the Saudi government's decision to privatise its clubs.

Last month, reports first emerged that Milan chief Gerry Cardinale had started exploring a potential acquisition of the Riyadh club in a bid to expand his budding footballing empire, which also includes Toulouse and a minority stake in Liverpool's ownership, Fenway Sports Group.

Semafor has now corroborated these claims and added that RedBird has held at least two meetings with the Public Investment Fund (PIF) to discuss the purchase of a 70% share in Al-Nassr. These talks are, however, still at an "early" stage.

There is no guarantee that RedBird's takeover attempt will be successful, but what is clear is that Al-Nassr will eventually follow city rivals Al-Hilal in being privatised. It is the PIF's vision for the future of its football teams and means that Al-Ahli and Al-Ittihad will also be sold off.

The PIF is clearing $213 million in debt accrued by Al-Nassr in order to facilitate the sale of the club. It is believed that RedBird would pay around $267m for its 70% share, although these terms have not been finalised.

Ronaldo to buy 20% of Al-Nassr

Ronaldo, who recently acquired a 25% stake in UD Almeria, is expected to be involved in the takeover. CR7 Sports Investments bought its percentage in the Spanish second-tier side from majority owner Saudi Media Company (SMC), which could also be part of the Al-Nassr purchase.

At present, the expectation is for CR7 to own 20% of the reigning Pro League champions. This consortium would allow New York City-based RedBird and SMC to tap into Ronaldo's popularity, while boosting Al-Nassr's profile in the US.

The Saudi government has realised that it can't keep pumping money into loss-making sports endeavours without outside investment. The PIF took control of the country's big four - Al-Ahli, Al-Hilal, Al-Ittihad and Al-Nassr - in order to lay the groundwork for future privatisation.

Last year, American businessman Ben Harburg, who grew up in Spain and has invested in his local club Cadiz, made Al-Kholood the first fully foreign-owned Saudi team. It was a major step, but it would pale in comparison to RedBird's proposed Al-Nassr takeover.

The report notes that, if successful, the American investment company would find itself at the heart of "Saudi Arabia’s multi-billion-dollar sports expansion" while boasting one of the world's most marketable athletes in Ronaldo.

For Al-Nassr, an affiliation with RedBird's AC Milan and Toulouse could be useful in a sporting sense if utilised properly. After all, the Saudi government's ultimate goal remains improving domestic competition and turning the Pro League into one of the top divisions in the world.

Saudi chiefs have found out that this is easier said than done and that money alone isn't enough to raise the profile of a league. The government has changed course and is urging its clubs to operate more sustainably while still providing them with the necessary funds to attract big names.

Those big-name signings have increasingly been younger players, who are inherently more valuable assets. They either stay long-term and help the Pro League grow, or clubs recoup their investment when they are sold back to Europe.

The next step in Saudi football's evolution is privatisation. After Al-Hilal, Al-Nassr appear to be next in line.