Saudi Clubs Brace for Player Lawsuits After PIF Budget Cuts

Saudi Arabia’s top clubs face potential contractual disputes due to budget cuts, raising concerns about meeting player wage commitments.

Saudi football clubs are preparing for a wave of legal claims from players after the Public Investment Fund reduced their budgets for the 2026-27 season, according to reports.

The reductions affect Al Hilal, Al Nassr, Al Ittihad, and Al Ahli, the four clubs brought under PIF control in 2023. The clubs face combined cuts estimated at between $200 million and $400 million.

Club boards have begun assembling legal teams ahead of possible disputes over unpaid or reduced salaries. Law firms in London and New York are also preparing to represent players.

The clubs are expected to prioritise payments to their highest-profile players, including Cristiano Ronaldo. Lower profile players, injured squad members, and those deemed surplus to requirements may face greater risks of delayed or incomplete payments.

The anticipated cases follow a wider reduction in Saudi football spending after the league attracted leading players with transfer fees and salaries that European clubs struggled to match.

Saudi Pro League clubs spent more than $1.5 billion following the start of the recruitment programme in 2023.

The league began introducing tighter financial controls in 2025. Oversight of club finances was transferred from the Sports Ministry to a Financial Oversight Committee within the Saudi Pro League.

The league has also changed the way recruitment funds are distributed for the 2026-27 season. Commercial performance and television audiences each account for 28% of allocations, sporting results account for 22%, and the remaining 22% is divided equally among clubs.

PIF has also begun reducing its direct ownership of football assets. In April of this year, it agreed to sell a 70% controlling stake in Al Hilal to Kingdom Holding Company, valuing the club at 1.4 billion Saudi riyals, or about $373 million.

Saudi clubs already face several financial disputes. FIFA’s registration-ban list included eight clubs from the country in May because of unpaid obligations to former players, coaches, or other creditors.

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