LIV Golf, the bold Saudi-backed experiment that was supposed to completely reshape the professional golf world, may be on its way out.
According to reports from the Financial Times and The Wall Street Journal this week, Saudi Arabia’s Public Investment Fund is on the verge of withdrawing its financial support for LIV Golf, which it has bankrolled since 2021 to the tune of over $5 billion.
To be clear, the PIF, a sovereign wealth fund valued at about $1 trillion, is not going broke. But it is under increasing pressure.
The ongoing U.S. and Israeli conflict with Iran has significantly disrupted Saudi oil exports. The kingdom continues to retreat from several ambitious overseas investments from before the war. On Wednesday, the PIF formally announced a new five-year strategy focused on domestic investment, and golf was absent from the plan.
LIV Golf CEO Scott O’Neil flew to Mexico City, the site of this week’s tournament, to reassure players and staff in person that the reports were “rumors” and to insist the league was “100% funded through the rest of the year.”
For LIV, the timing couldn’t be much worse. The league has never turned a profit, burning through an estimated $100 million per month, and suffering high-profile exits such as those of five-time major champion Brooks Koepka and former Masters champion Patrick Reed, who both returned to the PGA Tour in January.
Whether that’s enough to calm fears about the long term remains to be seen. The futures of some of golf’s biggest stars, including Bryson DeChambeau, Jon Rahm, Dustin Johnson and Phil Mickelson, are in serious question.
