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LIV and let die: golf rebels count cost of Saudi cutbacks and other sports fear worst | Matt Hughes
TL;DR
LIV Golf executives face uncertainty as Saudi Arabia's Public Investment Fund withdraws financial support, impacting the broader sports industry. Concerns grow among various sports administrators about potential budget cuts following the $10bn spending slowdown.
Key points
- LIV Golf executives are facing uncertainty due to funding cuts.
- Saudi Arabia has spent over $10bn on sports in the last five years.
- The Public Investment Fund's withdrawal affects multiple sports.
- Concerns about job security are rising among sports administrators.
Mentioned in this story
LIV GolfPublic Investment Fund
The reverberations of an unscheduled meeting of LIV Golf executives in New York this week have been felt way beyond their swanky offices in Hudson Yards, on the west side of Manhattan.
A slowdown in Saudi Arabia’s lavish spending on sport, which is conservatively estimated to have cost the kingdom more than $10bn in the past five years, had been expected, but its Public Investment Fund’s withdrawal of financial support for the rebel tour – which was first mooted to LIV execs on Monday – has caused shockwaves throughout the wider industry.
Significantly, the possibility of PIF’s withdrawal was not even addressed in an email sent by the LIV chief executive, Scott O’Neil, to his staff on Wednesday evening, which has left many of them more fearful for their jobs. Such concerns are not limited to golf, with other sports administrators fearful that similar cuts in Saudi’s budget could be coming their way.
While LIV was the primary vehicle through which Saudi launched their ambitious attempt to become a leading global sports destination and promoter five years ago, with more than $5bn invested on the rebel tour, the arch disruptors were by no means the sole beneficiaries.
Large elements of the football, boxing, motorsport, tennis, Esports and mixed martial arts financial ecosystems have become reliant on PIF funding, with a further $5bn spent on player transfer fees, infrastructure, TV rights and hosting fees in these sports. “We all went running to Saudi for a quick payday and are now wondering what the future holds,” a sports executive outside golf told the Guardian.
Although widely criticised as sportswashing, Saudi always insisted that its investment in sport was part of the country’s wider Vision 2030, a strategic plan to diversify its economy from oil to other industries including leisure and tourism for domestic benefit.
A source who has worked with both the Saudi Ministry of Sport and the Saudi Pro League says the mooted LIV cull should be seen in this context, with PIF now focused on investments with the potential to deliver a financial return and bring long-term economic and public health benefits.
“The investment strategy now is far more about domestic benefits and building real businesses,” they said. “LIV stands out as being from a different era, so it’s no surprise it is vulnerable.”
It is no coincidence that reports of LIV’s demise emerged on the same day that PIF published its financial strategy for 2026-2030, which emphasised the importance of “value realisation through performance, innovation and private sector engagement”. While sport was not listed as one of PIF’s six investment pillars, sources disclosed that it will be included as part of the tourism, travel and entertainment portfolio.
Another source with a government contract said the change in policy is best seen as an attempt to privatise Saudi’s sports industry, which explains LIV’s vulnerability. While individual teams could be auctioned off it would be a hard sell; O’Neil conceded earlier this year that even after reducing the prize fund this season it could be another 10 years before the tour is profitable.
Q&A
What financial impact does Saudi Arabia's cutbacks have on LIV Golf?
The withdrawal of financial support from Saudi Arabia's Public Investment Fund is expected to significantly affect LIV Golf, which has already received over $5bn in funding.
How much has Saudi Arabia spent on sports in the past five years?
Saudi Arabia has conservatively estimated to have spent more than $10bn on sports over the past five years.
Which sports are affected by Saudi Arabia's funding cuts?
Various sports, including football, boxing, motorsport, tennis, Esports, and mixed martial arts, are at risk due to their reliance on Saudi funding.
What are the implications of Saudi Arabia's funding withdrawal for sports executives?
Sports executives are increasingly concerned about job security and the future of their sports as they face potential budget cuts similar to those affecting LIV Golf.
