Governmental bodies are prohibited from owning teams in professional sports leagues, as per the country’s law that has been loosely implemented in recent years.
However, it seems that the deadline for the privatization of football clubs is around the corner.
There are at least six fully state-run football clubs in the Iran Pro League, also known as the Persian Gulf Pro League. As the government has been banned from funding these clubs since the start of the current Iranian year (March 20), the clubs have no choice but to be transferred to private owners once the current IPL season (2019-20) is concluded.
Three football clubs, namely Naft Masjed Soleyman Football Club based in Masjed Soleyman, Sanat Naft Abadan Football Club based in Abadan and Pars Jonoubi Jam based in Bushehr, are run by the Oil Ministry. They have always been grappling with a funding shortfall and although the law says the ministry cannot own sports team, the trio insists on going by their old names that refer to oil. The final permit to allocate budget to these three teams was March 20, 2020.
Shahin Bushehr FC, managed by Bushehr Municipality, is the fourth football club without a private owner.
Abuzar Dehdar, the chairman of Bushehr City Council, says, “We are looking for strategies to safeguard the grand name of Shahin. Fans need to be reassured that we will take heed as well as appropriate measures to transfer the ownership of this football club to a real entity this year or, if possible, will sell its shares to fans.”
Several attempts were made in the past to privatize the two Tehran-based major football clubs of Persepolis (locally known as The Reds) and Esteghlal (The Blues), but he baton has been passed by one administration to another.
However, since last year, the Ministry of Sports and Youth is earnestly seeking to privatize Persepolis and Esteghlal.
According to an announcement made by the ministry, the two state-run clubs will be handed over to the private sector in the month ending Aug. 21.
The Cabinet gave the nod to their privatization by the Iranian Privatization Organization in December 2018. The organization has been tasked with conducting the privatization process, including evaluation, pricing and setting conditions for the deals.
After more than a decade, when the Asian Football Confederation insisted on the privatization of professional football clubs, deadlines have now been set for reforming the structure of state-owned clubs.
Following AFC’s warning, different scenarios have been considered for the two clubs, including listing them on Tehran Stock Exchange or Iran Fara Bourse. But the clubs’ accumulated debts and ambiguous financial situation have prevented such an outcome.
Persepolis had a private owner before the 1979 Islamic Revolution but after the revolution the club was put under the control of Physical Education Organization (now the Sports and Youth Ministry).
The other popular Iranian club Esteghlal met with the same fate. Since the PEO chief used to be directly appointed by the president, the policies of these clubs have been set by politicians.
Other clubs currently present at Iran Pro League are more or less managed by private or semi-private owners. For example, industrial clubs, including Foolad Khuzestan FC based in Ahvaz, Foolad Mobarakeh Sepahan Sport Club and Zob Ahan Esfahan FC both based in Isfahan, don’t receive any budget from the Ministry of Industries, Mining and Trade.
