Crisis in Saudi League Mercato… Slow procedures disrupt deals and cause anxiety for clubs

The Saudi League’s summer transfer market has seen controversy over the past few days, after several clubs spoke of some deals falling through due to slow approval procedures for the program to bring in elite players, while the Saudi Professional League confirms that all eligible requests are processed according to approved procedures and that any delays are related to the files submitted.

Sources of a number of Saudi Roshan League clubs said in statements to the newspaper Middle Eastabout the slowness of granting approvals for the elite player attraction program, which caused the collapse of a number of club deals with the Ministry of Sports.

According to the established mechanism for the management of the recruitment program, obtaining the approval of the program is a prerequisite for the execution of any transaction financed through it, since the recruitment committee, which consists of five members, does not allow to finalize any contract until it has been formally reviewed and approved.

More than one party within the clubs confirmed to the newspaper that the delay in the review of applications has led to the loss of a number of players who chose not to wait for the procedures to be completed and went to sign with other clubs during the waiting period.

He also noted that there are several deals still pending before the recruitment committee, despite the clubs having finalized an agreement with all interested parties, and all that remains is to get the plan approved, amid growing fears that those deals will collapse if the delay continues.

According to Middle Eastern sources, the recruitment committee not only examines the documents, but also carefully examines the financial value of each deal, as clubs do not give the green light after agreeing a transfer fee or salary with a player or his club, but first assess the market value of the deal, whether in terms of transfer fee or annual salary.

If the value achieved by the club is less than the committee’s estimate, approval is given directly. However, if the contract value exceeds the committee’s estimate, the club has two options: either to cover the difference from its own budget or from other sources of funding, rather than from the budget allocated to it under the recruitment programme, even if there is a surplus of its financial allocations in the programme.

On the other hand, in response to an inquiry by Al-Sharq Al-Awsat newspaper on what was raised about the delay in reviewing club applications, the Saudi Professional League confirmed that there was no delay by the project team in processing applications that met all the requirements.

The association clarified that the club’s request to confirm the deal does not mean that it has been approved, as all requests are subject to a thorough review based on the documents and financial and contractual information provided by the club.

He added that the established procedures are known and clear to all clubs and that the club is responsible for completing the requirements and submitting the necessary documents, stressing that the program cannot be held responsible for any delay or slippage caused by failure to meet the required requirements.

The association also noted that the movements of the majority of clubs in the Roshen League during the current summer transfer period are proceeding normally and without any disruption, given that this confirms that the procedures are not an obstacle for clubs that meet all the requirements of the regulation.

The association confirmed that these controls were put in place to protect clubs and ensure the credibility of their contractual decisions, after previous experience showed the need to create clearer mechanisms to prevent clubs from taking on unthinkable financial commitments, so as to enhance financial stability and achieve fairness and transparency between all clubs.

In a related context, Al-Sharq Al-Awsat newspaper has revealed that Spain’s Jesus Arroyo, an adviser to the Saudi Professional League’s CEO, has taken over the leadership of the program to attract elite players, succeeding Michael Amenalo, who left the Saudi Professional League.

Notably, Saudi Roshan League clubs have signed 28 official deals so far in the current summer transfer window, while seven clubs have yet to announce new contracts, namely Al-Nasr, Al-Shabaab, Al-Ittifaq, NEOM, Al-Hazm, Al-Fateh and Abha.