The Public Investment Fund (PIF) of Saudi Arabia has withdrawn financial support for LIV Golf, the rebel tour that has cost the kingdom over $5bn in the past five years. The decision was communicated to LIV executives during an unscheduled meeting in New York this week, sending shockwaves through the wider sports industry.
LIV Golf chief executive Scott O'Neil sent an email to staff on Wednesday evening that did not address the possibility of PIF's withdrawal, leaving many employees fearful for their jobs. The cuts are not limited to golf, as other sports administrators worry that similar reductions in Saudi's sports budget could follow.
Beyond LIV, PIF has invested an additional $5bn in football, boxing, motorsport, tennis, esports, and mixed martial arts, covering player transfers, infrastructure, TV rights, and hosting fees. A sports executive told the Guardian: 'We all went running to Saudi for a quick payday and are now wondering what the future holds.'
The shift in strategy reflects Saudi Arabia's Vision 2030 plan to diversify its economy away from oil. A source who worked with the Saudi Ministry of Sport said: 'The investment strategy now is far more about domestic benefits and building real businesses. LIV stands out as being from a different era, so it's no surprise it is vulnerable.'
PIF's financial strategy for 2026-2030 emphasises 'value realisation through performance, innovation and private sector engagement'. While sport is not a standalone pillar, it will be included under tourism, travel, and entertainment. This move towards privatisation explains LIV's vulnerability, as individual teams may be auctioned off, though O'Neil admitted the tour may not be profitable for another decade.
In contrast, PIF confirmed the sale of a 70% stake in Saudi Pro League club Al-Hilal to a private company owned by Prince Al Waleed bin Talal Al Saud. PIF still holds majority stakes in Al-Ittihad, Al-Ahli, and Al-Nassr, but these will also be sold off in coming years. Cristiano Ronaldo already owns a small stake in Al-Nassr and may increase his investment after retiring. While most World Cup 2034 funding is ringfenced, other spending will continue to be cut.
