LIV Golf is set to announce it is seeking new investment amid reports that Saudi Arabia’s Public Investment Fund (PIF) is to cut off its funding. PIF has poured more than $5bn into LIV Golf since launching it as a challenger to the PGA Tour in 2022, poaching top players including Bryson DeChambeau and Jon Rahm.
However, the sovereign wealth fund’s recent change of strategy looks set to mean it stops bankrolling further losses on the lucrative circuit after the current season. PIF chair Yasir Al-Rumayyan – who holds the same position at Premier League club Newcastle United – is reported to have stepped down.
LIV Golf Leadership to Address Future
LIV Golf’s leadership is set to address its future in a statement later today, in which it is expected to say it is exploring strategic opportunities to reposition the business. Sources with knowledge of LIV Golf’s workings said this would include the appointment of new board members and a search for new long-term financial partners.
LIV Golf is in talks with prospective investors, the sources added, but would be sticking to its team-based model, in which star players own equity in the franchises they captain. Players were told of the developments on Tuesday, following more than a week of speculation about the future viability of the global circuit.
Possible Sale of Team Stakes
The breakaway golf league could sell stakes in its 13 teams, which organisers once said could reach valuations of $1bn apiece. LIV Golf has shown some signs of improving its commercial position since the arrival of Scott O’Neil as CEO at the start of last year, but has still needed fresh capital from PIF.
It secured high-profile commercial deals with Rolex and HSBC in the last 12 months, has attracted big crowds to events in Australia and South Africa, and achieved more broadcast coverage. However, mainstream cut-through has still proven challenging.
PIF’s Wider Rethink on Sports Investments
PIF’s expected withdrawal is part of a wider rethink surrounding its sports investments, with a major snooker event in Saudi Arabia already ditched. The road back to the PGA Tour could be a rocky one for star players such as DeChambeau and Rahm, who were lured to LIV Golf by signing-on fees worth hundreds of millions of dollars.
