KSA has taken the initiative to privatize the teams at the top football group to revitalize the sports. Since the aforementioned sport is preeminent in KSA, the national team has become to be one of the most victorious in Asia. In addition, they have won the AFC Asian Cup more than two times since 1984 and they have also managed to qualify for the FIFA World Cup on five different occasions as well as the Russia 2018. Most of the KSA football clubs depend on the mixture of traditional income streams which are match-day, commercial, and broadcast, and input from various wealthy individuals and groups, informally and formally. It is important to comprehend that privatization can expressively raise the traditional revenue streams without affecting the investment from wealthy persons and groups.
There are important aspects that can be used when following the procedure for converting clubs to corporate entities and afterward formalizing the course of private investment. The details include the execution of documents, timelines, and applicable regulations. The government claimed that the privatization of clubs will be done in various phases. In addition, there was sufficient information to reveal that for investment, each club may have two elements real estate and assets. Moreover, there will not be any obligation for the sale of the property or the headquarters. As a result, this will ensure that the investors have some flexibility in ensuring the different business strategies and plans to maximize development and growth in later years.
Procedure for Privatization in the KSA
The Council of Economic Affairs and Development has ensured that there is the creation of a committee that will oversee the implementation and completion of football club privatization.
The aforementioned government of the KSA department also directed the General Authority and stakeholders to form the Sports Development Fund, offer facilities, and loans for the clubs. It is crucial to understand that the committee is chaired by the Chairman of the General Sports Authority and it consists of several Saudi Arabian Football Federation and Saudi Professional League members. The move to privatize the team might affect the credibility and associated quality going forward, thus, it would be advisable to consider the mentioned aspect.
Unions can be defined as institutions that have the function of negotiating with other firms on behalf of the members. More importantly, Trade Unions only represent a certain type of personnel whose job operations comprise of a particular set of functions. On the one hand, industrial unions acquire their members from a specific industry. In the U.S., some of the industrial unions include the Auto Workers Union, while the American Federation of Labor-Congress of Industrial Organizations is a trade union. However, the question that lingers is the specific function of unions as they represent their members. For the aforementioned question to be answered, there is important in understanding the reasons for the historical rise of trade unions. According to Phelan, trade unions started to rise during the industrial revolution period (23). Trade unions came to play when factories used to line people and allocate the specific tasks as issues arose with regards to the working environment and wages. The foretasted issues resulted in the formation of the first unions, which were in the resource and manufacturing organizations, steel mill firms, and textile factories. Marino et al. claim that unions spread to also other industries such as the service sector, which includes professional sports and teaching. Currently, unionization is mainly linked with transportation, government, and utilities.
One of the primary reasons that affect unions of modern times is the fact that they need to work with many managers. In addition, Marino et al. argue that union leaders also experience hardship when it comes to arranging the staff to a collective group. Rosenfeld alludes that the evolution of modern staff has raised a new set of defined hurdles. During the old economy, the companies that have hierarchies acquired the bureaucratic structure, which created a void between the employees and managers. Consequently, unions were created by such employees to access autocratic managers who have unfavorable policies for the welfare of the personnel.
Significance of Unions
According to Phelan, there are different reasons why employees continue to rely on unions. Phelan believes one of the primary reasons was to increase the minimum wage. Even though the aforementioned issue is relevant to low skilled employees, the truth is that sports professionals also require it. For one to be able to acknowledge its significance, there is objectivity in examining the probable income for professional sports players. Marino et al. argues that professional sports produce their income from sales of television rights and ticket sales. This shows two aspects to which revenue requires to be shared substantially across different entities. It is important to understand that even though investors play a critical role in funding the clubs, professionals have an equal task to showcase their talent making fans come and watch. This shows a symbiotic relationship between the investor and the professional player. Therefore, such talent should be fairly remunerated because of their hard work and determination to keep them going. Hence, since the investors may want to pocket some of the funds at the expense of the players, there is the importance of legal institutions that can be used to defend the right of the players through bargaining on their behalf.
How Unions Will Help the Players as they Privatize the KSA Football League
The union continues to have a substantial effect on the compensation and work lives of non-unionized and unionized workers. It is essential to understand that unions can raise the settlement of the employee by nearly twenty percent. Also, they will make sure that they reduce the inequality since they can raise the salary for middle-and low-wage staff than for the high-wage personnel (Phelan 45). The health benefits will increase because the union will try and facilitate the best affordable health care for the athlete.
It is essential to understand that unions play the pivotal function in both securing the rights and protections, such as medical or family leave, enforcing the right at the job, health, safety, and overtime. Since most of the unionized athletes will be well informed, they will benefit from social insurance programs. Some of the union goes further to offer expert legal advice to the athletes in times of need. The unions that will be formed in the KSA will help the athletes appeal for suspension or fines, and also file for grievances.
How The Structural Changes as A Results of Privatization in KSA Will Affect the Players
The general impression is that the privatization in KSA will result in a new dawn for investors, football clubs, and players. It is indeed consistent to note that with the integration leads to a more structured and corporate means to manage the system, the investor will gain more control. With privatization, the investors will be able to make decisions, force the implementation of changes, and define the course of different football clubs. For players, it means a less effective position as they are forced to assume a passive position in critical decision making. It is important to allow every member of such a complicated system a chance to share in the process of decision making. However, the structural changes that come with privatization give the leaders or the investors the opportunity to rule critical decisions with minimal or no regard for the opinion of other members. The challenge, therefore, is the lack of capacity for players to make a bargain or invent changes that would represent their interests.
Shoult notes that, as per the structure economic plan of the county, the privatization plan aims to speed up financial reform and create a more attractive investment environment (76). He also argues that privatization programmer in KSA seeks to invest the required level of competitiveness in the society (76). Among the structural changes that the privatization of sports clubs would bring is an increase in competitiveness. The clubs, when owned by the government, are not under pressure to perform well. There is a lack of objectivity as players only take part in sports as a way to establish their relevance and benefit from the marginalized traditional streams of incomes. As much as the privatization program will eradicate the significance of the conventional profits, it will present even a more appealing platform to make more income and attractive sports viewership. Just like in England, the privatization of clubs will force the investor to make sacrifices in the efforts to challenges their rivals and come at the top of the league. Generally, the corer will change how many perceive football, attracting viewership, and creati9ng a culture that supports and appreciates sports. In return, the players will get a better income, and with the help of the defined unions, they will be well-represented as impactful members of the Saudi society.
In the past, the players only considered their participation as a social activity with limited economic relevance. The empowerment of the citizen of Saudi and the increasing employment opportunities are among the principal objectives of the privatization program in Saudi. Through sports activities, many people can get employment and attractive high wages. The structural change that the privatization brings to the football clubs and players is the opportunity to reaffirm their course of economic and social progress (Ramady 328). In these cases, the players will calculate their value and be able to effectively bargain depending on their performance. With the help of the union, there will be a clear definition of the requirements, responsibilities, and the existing relationship between players and their respective football clubs. It will introduce well-crafted constructs to make their career and state their expected streams of income in a particular period. The changes will benefit the investors, the football club managers, and the players as it will validate the roles of every single position and ensure a more shared course of achieving the set objective. It is agreeable that all the players will significantly benefit from such changes as they will earn the remuneration and representation that they deserve. The course will also in the long-run, outspread the influence of critical players as they will also sign other contracts with companies for advertising or any other commercial alliances.
The Reasons for Privatization of KSA Football League by KSA Government
Saudi Arabia is a promising economy in Asia that competes favorably with other players in the same regional market. The privatization program was drawn in the effort to diversify the economy and make is less dependent on oil revenues. It offers other marginalized sectors a chance to participate in the economic development of the country (Birdsall & Nellis 1618). In leaving the sports in the hands of the government, there is a lack of progressive growth in the sector. , when ruled by the government, lack the competitiveness and ambiance that makes it one of the most effective sources of income in other countries such as England. Therefore, the primary goal is to attract investors I sports, increase completion, and make it one of the most effective streams of national income.
Another related reason for the privatization of KSA football is in line with the Saudi’s Vision 2030 objective of creating employment opportunities. A sustainable economy is one that offers jobs from which income is collected. Therefore, in creating a competitive and a more corporate environment for KSA football, the players and other key participants will get better work opportunities with an appealing increase in their wage cut. The society will benefit significantly as a considerable percentage of the unemployed population is invited to work in the expanding sports sector.
Social goals are essential to an economy that seeks a certain dependable degree of diversity. The privatization of KSA football expresses the commitment of the government to promotes social goals alongside the well-crafted economic objectives. It appetites the real value of sports and in seeking to bring investors on board, the course of KSA football will gain reassurance. Many will observe the heightened importance of sports hence a culture that allows young people to participate in sports and grow their talents. Saudi seeks to be a sustainable and diverse society hence the efforts to challenge the existing autocracy and invest in dispersed systems of government and social participation.
The privatization program also seeks to increase and expand the ownership of productive assets by the citizens. Therefore, it gives citizens with enough capital and wealth an opportunity to create more economic and social value for others in the society (Ramady 330; Birdsall & Nellis 1622). The course also helps to check and rationalized government expenditures as the KSA football will non longer be in the hands of the government. Therefore, there would be enough disposable income to direct to their import socio-economic agenda in society. Conclusively, the privatization of KSA football is a well-defined plan the seeks to offer the people of Saudi an opportunity to explore the real value of sport and benefit from the extended position that football and sports will occupy in society.
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