Saudi Arabia Cuts Funding for LIV Golf, Shocks Sports World – Insider Report

The stability of LIV Golf is currently uncertain following a report suggesting that Saudi Arabia’s Public Investment Fund (PIF) plans to cease funding the tour.

The BBC has reported that the substantial financial support from the PIF will be discontinued after this season ends, which could create complications for broadcasters like Fox Sports in the U.S. and TNT Sports in Europe.

PIF is expected to reveal a “new strategic” approach aimed at attracting new investors for the tour, which showcases stars such as Jon Rahm, Phil Mickelson, and Bryson DeChambeau. According to BBC Sport, the entire golf series is “completely on the market,” and there are additional reports indicating that LIV Golf co-founder Yasir Al-Rumayyan will resign from the board, with efforts underway to find new board members.

Meanwhile, LIV Golf has deferred its event in New Orleans scheduled for June, although events are still planned in South Korea, Spain, and the UK before heading to Trump Bedminster in New Jersey.

Despite seeking new financial backers, LIV Golf officials have conceded that the total number of events will likely be significantly reduced from the current 14. However, sources close to the website claim the tour is expected to generate $100 million more this season than in the previous one.

Since its inception in 2021, PIF has invested over $5 billion in LIV Golf. Despite this, the tour has faced about $1.1 billion in losses outside the U.S. The tour was launched amidst controversy for breaking away from the PGA Tour and luring major players with lucrative contracts. In 2023, LIV Golf and the PGA Tour considered a merger to end the rivalry, but it did not materialize, and the PGA instead secured investment from Strategic Sports Group.

Last year, Fox Sports entered into a multi-year broadcasting agreement with LIV Golf, following previous coverage on The CW.

This development occurs as Saudi Arabia begins to retract its investments in sports. The nation has historically used its wealth to support and host various sports events, including boxing, wrestling, and golf. However, this trend may be ending. Questions are also being raised about PIF’s ongoing interest in owning the Premier League soccer club Newcastle United, and it was recently announced that it would sell most of its stake in the Saudi team Al-Hilal to Kingdom Holding Company.

Saudi Arabian leader Prince Mohammed bin Salman, commonly referred to as MBS, has endorsed a new financial strategy effective until 2030, focusing on domestic investments and promising more rigorous management compared to the previous strategy from 2021 to 2025.

“PIF will continue to support the Saudi Vision 2030 objectives by fostering competitive domestic ecosystems, investing in national leaders capable of global expansion, and establishing international economic partnerships, building on the achievements under PIF’s 2021-2025 strategy,” stated PIF governor Al-Rumayyan.

We have contacted PIF for additional statements. An update on the future of LIV Golf is anticipated later today, and this story will be updated accordingly.