The purpose of this Regulation is to:

• 1- Govern the sponsorship investment activities of sports clubs.

• 2- Achieve better financial returns for clubs from sponsorship investments.

• 3- Organize the procedures for sponsorship investments.

• 4- Enhance integrity and competition and provide fair treatment for investors, in line with the principle of equal opportunities.

• 5- Achieve transparency in all stages of the investment procedures.

1- The provisions of this Regulation apply to commercial sponsorships of sports clubs subject to the basic Regulation for sports clubs.

2- Non-profit sponsorships for sports clubs are exempt from this Regulation if three conditions are met, which are:

• A. The contract must be in accordance with the contract model attached to the Regulation.

• B. The contract must not yield any profits or benefits to the club or its members, other than moral benefits.

• C. Approval from the Ministry for the contract.

In consideration of what is stated in the basic regulation, every investor must meet the following essential conditions:

• 1- The investor must have a legal personality.

• 2- Submit an investment plan for the entire duration of the investment.

• 3- Comply with the technical specifications issued by the Professional League Association.

The investor is obligated to provide the administration with the following documents:

• 1- The proposed technical specifications for uses related to care rights.

• 2- A profile file of the legal entity of the investor, stating the date of establishment and a brief overview of existing or previous care operations - if any.

• 3- The ownership structure of the legal entity of the investor, detailing the identification of the owners of the legal entity and the official information about the corporate personalities among them (e.g., Commercial Register number, number 700, etc.).

• 4- The government certificates required for private establishments:

  • A. Certificate of registration with the General Organization for Social Insurance.

  • B. Certificate of registration with the General Authority of Zakat and Income.

  • C. Certificate of registration for Value Added Tax.

  • D. Saudization certificate.

• 5- An extract from the SIMAH company indicating the investor's credit status and the absence of financial defaults, for contracts exceeding two million Riyals.

• The Investment Administration has the right to request additional licenses before contracting with the investor.

1- The administration engages in negotiations with potential investors to achieve the following objectives:

• أ. Assess the market value of sponsorship rights and the marketing impact value of the targeted investor types through an authorized entity, for contracts exceeding an annual value of one million Riyals.

• ب. Obtain the preliminary approval of the investor regarding the sponsorship of an event, program, or another alternative product instead of the event, program, or product presented at that time.

• ج. Establish a price range that includes the lowest and highest possible contractual values and negotiate accordingly with each investor, taking into account the expected marketing impact that each investor will bring to the club.

• د. Request a formal proposal from those interested in investing in the sponsorship rights offered by the administration.

2- The Investment Committee reviews the submitted proposals and evaluates them from a technical and financial perspective, as well as the risk ratio and profitability ratio for the club, provided that one of the committee members is an expert in the field of marketing. The committee must consider the following guiding criteria:

• أ. The investor's ability to fulfill their contractual obligations and adhere to the investment plan submitted by them.

• ب. The legal entity's financial and regulatory soundness of the investor, for contracts exceeding an annual value of two million Riyals. After evaluating the investors' proposals and the legal entity of the investors; the committee recommends one of the submitted proposals to the administration.

3- The administration submits the proposal recommended by the Investment Committee and the investor's documents to the Investment Management for final approval of the proposal.