Saudi Arabia's lucrative venture into golf has officially ended after the Kingdom confirmed it is abandoning its LIV Golf project. The decision was announced at midday on Thursday, as detailed by Daily Mail Sport. Despite the withdrawal, LIV Golf has vowed to continue operating into 2027, though it has lost its primary financial backer.
Background and Financial Impact
Formed in 2022, LIV Golf has been heavily backed by the Saudis to the tune of $6 billion. However, returns have been minimal, while competitors like the PGA Tour and DP World Tour continue to thrive. The Saudi Public Investment Fund (PIF) governor Yasir Al-Rummayan will step down as LIV chairman, with at least two new board members expected to be named.
Future Survival Measures
Senior figures at LIV are optimistic that fresh investors will be attracted. One survival measure under consideration is reducing the playing schedule from 14 tournaments, as each event currently costs $30 million in prize money alone. The retention of star player Bryson DeChambeau, whose deal expires at the end of the season, depends on new funding.
LIV has been looking to private equity to fill the gap left by the Saudis. Interestingly, some believe the removal of Saudi backing could open new avenues due to the Kingdom's international reputation on human rights. However, this projection may be overly optimistic.
