LIV Golf to lose Saudi PIF funding: Answering 5 burning questions

So, what does all this mean? And why is it happening now? Let’s answer your questions below.

5. Is it really over for the Saudis and LIV?

It sure looks that way! Assuming nothing changes, the PIF will sail off into the sunset after the 2026 season is done in late-August, leaving LIV without a financial backer for the first time in the league’s existence.

4. What will LIV do without Saudi funding?

Unclear! The PIF has played a critical role in LIV’s existence since the league’s founding, footing billions in startup expenses and maintaining a near-constant presence over the league as it attempted to gain a foothold in golf. In fact, perhaps the most impactful components of Saudi influence on LIV can’t be explained in dollars and cents: The financial security provided by the PIF meant LIV was under no immediate obligation to turn to a profit — a strategy that allowed the league to operate like a startup, running up losses in pursuit of marketshare.

Over the years, LIV has spent lavishly on star players, high-profile concert guests, production costs and event buildouts in an effort to build a fanbase and roster of sponsors. The cost of that engine — and the staff needed to run it — has been steep: more than $5 billion, according to the league’s financial filings. But LIV was always operating under the assumption that its funding from the Saudis was secure.

“No, honestly, we haven’t heard anything other than what Yasir [Al-Rumayyan, the PIF governor] told us at the beginning of the year,” Sergio Garcia said in Mexico City two weeks ago. “That he’s behind us, that they have a long-term project.”

Under O’Neil, the league made headway in cutting losses, but O’Neil indicated it could still be “five to 10” years from profitability. So, where does that leave the league without Saudi funding in as soon as five months?

Perhaps the simplest path forward for LIV would be finding a new investor who might be able to prolong the league’s runway on the path to profitability. In his interview with the European TV rights holder, O’Neil suggested this was LIV’s likeliest option.

“This notion of do you have to raise money? Probably,” he said. “This is business. But if we keep the trajectory going the way we are and the revenue growth going, this is going to be a really good business for a really long time.”

3. Why is the PIF getting out of golf?

The PIF’s decision to pull away funding from LIV aligns with a much broader strategic shift to divest from sports, which was announced by the sovereign wealth fund in mid-April. In just the last few weeks, the PIF has sold its glitzy soccer team, Al-Hilal, distanced itself from a flag football venture with Tom Brady and now, according to reports, pulled funding away from LIV.

Yasir Al-Rumayyan, the PIF governor, acknowledged that the Saudis planned to shift their priorities away from sports and moonshot bets, and toward more traditional investments, suggesting the PIF was “reviewing its investments and deals” and “reassessing its priorities.”

Some of the reason for this pivot comes thanks to changing financial realities for the Saudis, who are light on cash (relatively speaking) after years of spectacularly ambitious bets in a well-publicized effort to diversify their economy (which the country’s leader, Crown Prince Mohammed Bin Salman, named Vision2030). In recent months, the PIF has announced plans to wind down much of its spending in Vision2030, including withdrawing support behind the $500 billion megacity Neom, after years of construction delays and budgetary issues.

Geopolitical pressures have also played a role. The Saudi government has seen its primary economic driver, oil, slo precipitously in the fallout from the Iranian blockade on the Strait of Hormuz, with exports falling from 10.4 million barrels per day to 7.25 million barrels per day. The war has also caused the government to significantly increase its defense spending, including a recent $9 billion deal with the United States.

Still, the sovereign wealth fund’s ties to the league can’t be overstated: The league offices in New York’s Hudson Yards are in the same building as several PIF-related projects, including Neom, and Al-Rumayyan has been a frequent presence at LIV events and forged friendships with several players.

2. What happens to the rest of LIV’s events? And what about its players?

Business as usual, except for one notable omission: LIV recently postponed its mid-June event for New Orleans until the fall, citing issues with heat and competition with the World Cup as reasons for the postponement.

The remainder of LIV’s players remain under contract through the end of the season, including Bryson DeChambeau, whose contract expires at the end of the season.

1. When will we know more?

It’s hard to say, though it stands to reason that the summer and fall will be busy times on the calendar of LIV CEO Scott O’Neil.

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