Saudi Arabia said to consider ending funding of LIV Golf

[NEW YORK/LONDON] LIV Golf – the upstart league that challenged the supremacy of the PGA Tour – might be losing its funding from Saudi Arabia, according to a source familiar with the situation.

An announcement on LIV’s financial backing from Saudi Arabia’s Public Investment Fund (PIF) could come on Thursday (Apr 16), the source said, who could not speak publicly about the matter.

Such a move would likely bring an end to the breakaway league that fractured professional golf by luring top players with big paychecks and fundamentally altering the economics of the sport.

LIV and the PIF did not respond to requests for comment.

The Saudis have been keen for LIV to continue in some form, especially after sinking so much money into it, but are unwilling to keep funding the competition indefinitely if it keeps up its rate of losses, sources with direct knowledge of the PIF’s strategy said earlier this year.

Speculation about the future of LIV comes as the PIF on Wednesday unveiled its plans for the next four years, with a major focus on domestic strategy.

The importance of funding a golf league dropped even further in importance following the war between the US and Iran that saw Gulf nations bear the brunt of the Islamic Republic’s attacks.

Initially, Saudi Arabia viewed its sports assets as cultural, political and social holdings, that could help the country quickly expand its influence.

Over the past year, the PIF has switched to treating its sports holdings, including ownership of English football club Newcastle United, as investments that need to make a return.

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LIV Golf, which started play in 2022, cost the PIF an estimated US$5 billion in just four years. Despite this substantial investment, the league has struggled to generate returns, citing challenges with low attendance and poor television viewership.

Furthermore, its ongoing and sometimes aggressive rivalry with the established PGA Tour has faltered, after high-profile players such as Brooks Koepka and Patrick Reed departed LIV to rejoin the PGA Tour.

LIV launched with immense fanfare thanks to a seemingly unlimited budget to take on the PGA Tour. It implemented 54-hole, no-cut tournament formats. Supporters heralded it as the future of the game, while critics called it a “sportswashing” vehicle for the Saudis.

Despite introducing innovations like the franchise team model and shotgun starts, the league struggled to secure consistent television viewership and widespread mainstream acceptance.

The conflict between LIV Golf and the PGA Tour persisted, despite previous talks of a merger. The PGA Tour pushed for the end of LIV in its current form as part of any potential deal, Bloomberg previously reported.

LIV took its name from the Roman numerals for 54 – the number of holes played in its events, as opposed to the traditional 72 in PGA Tour tournaments. But this year, it switched to 72 holes, in a bid to make it so players can qualify for official world golf ranking points, which the 54-hole format had precluded.

“They have now switched from 54 holes to 72 holes to get world ranking points, so it’s like, you are just doing what everyone else is doing,” said Masters winner Rory McIlroy in January. “So, what’s different, you know, apart from the money?” BLOOMBERG