Government Retreats from Transferring Persepolis Club to Social Security; Two Private Banks Enter Negotiations

Following widespread protests, particularly from pensioners' unions, officials of the Islamic Republic have retreated from their decision to transfer Tehran's Persepolis Club to pension funds, announcing the offering of the Persepolis and Esteghlal clubs to two private banks. On Wednesday, March 14, the government spokesperson emphasized the cancellation of the transfer of Persepolis to pension funds and stated that the government is negotiating with two non-governmental banks for the transfer of the two football clubs. Ali Bahadori Jahromi, without referencing the criticisms raised by media, experts, and pensioners' unions, cited 'the emergence of other options' within the non-governmental banks as the reason for the government's retreat from transferring the Persepolis Club to Social Security. He did not mention the names of these two private banks or the details of the negotiations with them. Meanwhile, Kiomars Hashemi, the Minister of Sports and Youth, announced that the government has issued a permit for the transfer of the Esteghlal and Persepolis clubs to two non-governmental banks. Kiomars Hashemi stated that the government issued this permit on Wednesday to facilitate the transfer of these two clubs to non-governmental banks. The government's withdrawal from its previous decision comes at a time when the Cabinet had approved the transfer of the Persepolis Club to the 'Rural and Nomadic Insurance Fund,' the Social Security Organization, and the 'National Pension Fund' as part of settling the government's debts to these companies, which was communicated on March 11. Following this decision, the National Pensioners' Union opposed the 'forced sale of bankrupt sports clubs to the Social Security Organization.' The Iranian Pensioners' Council also addressed the Minister of Labor, stating that 'imposing this club on our funds is not only not an honor but a blatant violation of the interests of pension funds.' Solat Mortazavi, the Minister of Labor, Cooperatives, and Social Welfare, had previously stated, 'If we have the honor of owning shares in Persepolis, we will be present with strength.' The joint and state ownership of the Esteghlal and Persepolis clubs is one of the significant obstacles for these clubs to obtain the necessary licenses for 'professional' clubs in Asia, which has become a challenge for Iranian football in recent years due to the stringent requirements of the Asian Football Confederation. According to Iranian media, April 1, 2024, is the last deadline for clubs to submit documents for obtaining professional licenses. Meanwhile, the government's efforts to transfer these two clubs come at a time when many observers evaluate sports clubs, especially Persepolis, as 'costly and loss-making.'