UPDATE: 6.17 a.m. PT:
LIV Golf has announced it is in the process of identifying “secure long-term financial partners” as it undergoes a significant restructuring. This comes as Saudi Arabia plans to cease its financial support for the golf series.
Newly appointed to the golf series’ board are Gene Davis and Jon Zinman, while LIV Golf co-founder Yasir Al-Rumayyan is set to resign. Although there was no specific mention of Saudi Arabia’s Public Investment Fund (PIF) in the official announcement, various reports indicate that it is pulling out of the breakaway golf organization.
Davis and Zinman, who have expertise in corporate turnarounds and restructuring efforts, will collaborate with the management of LIV Golf to transition the league from its initial setup phase to a model that involves multiple investment partners and a more institutional structure.
“Together with the executive leadership team, Jon and I see a definitive chance to stabilize the league’s structure, attract sustainable capital, and prepare the business for future growth while continuing to promote golf globally,” Davis mentioned today.
PREVIOUSLY 1.56 a.m. PT:
The future sustainability of LIV Golf is uncertain following news that Saudi Arabia’s Public Investment Fund (PIF) intends to discontinue its financial backing of the tour.
The BBC has reported that the substantial multi-billion dollar support will end after the current season, which could create challenges for broadcasters like Fox Sports in the U.S. and TNT Sports in Europe.
With the imminent withdrawal of PIF backing, the fund plans to unveil a “new strategic” direction aimed at attracting new investors for the golf tour, which boasts players such as Jon Rahm, Phil Mickelson, and Bryson DeChambeau. According to BBC Sport, the entire series is now effectively on the market, and there are reports suggesting a search for new board members as Al-Rumayyan prepares to step down.
Meanwhile, LIV Golf has delayed its event in New Orleans scheduled for June, although tournaments are still planned in South Korea, Spain, and the UK, before heading to Trump Bedminster in New Jersey.
Despite expectations of generating $100M more this season than the previous one, LIV Golf officials acknowledge that they must significantly reduce the number of events from the current 14 if new financiers are not found, as per BBC Sport’s sources.
Since its inception in 2021, PIF has invested over $5 billion in LIV Golf, which has incurred losses of approximately $1.1 billion outside the U.S. The tour was launched amidst controversy, breaking away from the PGA Tour and securing several top players with substantial contracts. In 2023, an attempted merger between LIV Golf and the PGA Tour fell through when PGA opted for investment from another entity, Strategic Sports Group, instead.
Last year, Fox Sports entered into a multi-year broadcasting agreement with LIV Golf following earlier broadcasts on The CW.
This development is part of a broader trend of Saudi Arabia scaling back sports investments. Previously, the country had actively financed and hosted a variety of sporting events including boxing, wrestling, and golf. However, this era may be drawing to a close. Questions linger about PIF’s continued ownership of the Premier League football club, Newcastle United, especially after a recent announcement about divesting most of its stake in the Saudi football club Al-Hilal to Kingdom Holding Company.
Under the leadership of Prince Mohammed bin Salman (MBS), Saudi Arabia has endorsed a new financial strategy running until 2030, focusing more on domestic investments and maintaining a tighter control compared to the previous five-year plan (2021-2025).
“PIF will persist in supporting the Saudi Vision 2030 goals by fostering competitive domestic ecosystems, investing in national champions poised for global scaling, and establishing worldwide economic partnerships, leveraging achievements from the 2021-2025 strategy,” stated PIF governor Al-Rumayyan.
We have contacted PIF for further comments and anticipate a statement regarding the future of LIV Golf later today, which will be included in updates to this story.
Daniel Hayes is a business journalist with a focus on market trends, startups, and corporate strategies.
His sharp analysis and investigative reports make complex financial topics accessible to all readers.
