The Uncertain Future of LIV Golf: Saudi Arabia’s Shift Toward Profitability in Sports

Saudi Arabia’s potential shift away from its expensive golf initiative is part of a broader retreat from sports investments, as the country aims to focus on financial returns instead of cultural influence.

LIV Golf, the emerging league that directly contested the dominance of the PGA Tour, has resulted in an expenditure of over $5 billion from the Saudi Public Investment Fund (PIF) since its inception in 2022. Despite this hefty investment, LIV has encountered financial difficulties, including low attendance (except for the recent event in South Africa) and disappointing television viewership. Consequently, PIF may reconsider its financial support.

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The willingness to invest in such a costly venture was part of the nation’s strategy to utilize various sports as cultural, political, and social investments for enhancing its influence rapidly.

This strategy gained validation in December 2024 when FIFA officially named Saudi Arabia the host for the 2034 World Cup after an uncontested bidding process, marking the country’s first time hosting a major international sports tournament.

Over the last year, PIF, which manages around $1 trillion in assets, has experienced financial challenges and has started to treat its sports investments as ventures requiring returns, aligning sports with other sectors of the fund, according to sources familiar with the situation.

Spending billions on initiatives like LIV Golf and excessively recruiting stars for its domestic football league can no longer be justified, the sources added, opting for anonymity as the discussion pertains to confidential information.

This has led PIF to consider reducing its funding for LIV Golf, according to informed sources. Ongoing discussions may involve seeking new sponsors for the league; LIV has previously engaged Citigroup Inc to find investors for its golf teams. The CEO of LIV Golf mentioned in a memo on Wednesday that the tournament will proceed despite the current uncertainties.

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Other sports have also felt the impact. The Women’s Tennis Association’s season-ending championship will be moving from Riyadh after this year’s tournament. Although WTA had initially shown interest in extending their three-year agreement, negotiations ultimately fell through.

Saudi Arabia has also opted to exercise an early opt-out clause to terminate its agreement for hosting the Next Gen ATP Finals ahead of schedule.

Furthermore, PIF was anticipated to be a significant backer for the NBA’s plans to start a European league, according to various reports. However, this ambition has encountered internal resistance in recent weeks, as revealed by a knowledgeable source.

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This week, the PIF presented its new 2030 strategy in Riyadh during a series of presentations, with the only highlighted sports investments being domestic, including the World Cup and its support for SURJ Sports Investment, which has refocused on domestic deals.

Nevertheless, Saudi Arabia is still interested in nurturing certain sports investments. It aims to maintain its stake in Newcastle United and continues to discuss a potential $500 million deal with World Athletics for the sport’s commercial rights.

Representatives for LIV and PIF did not reply to multiple requests for comment.

LIV Golf CEO Scott O’Neil addressed the speculation surrounding the league’s future in a memo to staff, asserting that the current season, with a tournament taking place in Mexico this week, will continue “as planned, without interruption.”

In the memo, the CEO highlighted a recent event in South Africa that drew over 100,000 fans, stating, “the journey of a startup often hinges on such moments of pressure.”

The possible withdrawal of support for LIV Golf could signal an abrupt end for the entity. Initially, it made headlines with substantial deals to attract players, including around $200 million for Phil Mickelson, and aimed to diversify from the PGA Tour with shorter tournaments and increased entertainment value.

Supporters hailed it as the future of golf, while critics labeled it a vehicle for “sportswashing” by the Saudis.

The Athletic reported that members of the LIV Golf leadership were first informed last Sunday, following the Masters Tournament, that they would soon lose their positions.

Executives at LIV Golf were anticipating an announcement regarding their future on Thursday, according to sources familiar with the situation. It remains unclear whether any announcement would be made publicly.

Bloomberg reported in January that LIV’s Saudi backers are eager for the league to persist in some form, especially after their substantial financial commitment, but refuse to keep funding it indefinitely if the losses continue. According to UK filings, LIV Golf reported nearly $500 million in losses in 2024.

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Over the past five years, various Saudi investment vehicles have expended billions on sports. In 2021, the PIF purchased the English Premier League football club Newcastle United.

The debut of LIV Golf in 2022 exemplified the PIF’s new strategy, shaking the foundations of the golf establishment and appealing to several of the sport’s renowned golfers.

The Saudi Pro League has also attracted prominent stars, including Cristiano Ronaldo, Neymar, and Karim Benzema, following a spending spree exceeding $1 billion in recent years.

As of early 2025, this expenditure showed no indications of abating. In February last year, SURJ invested roughly $1 billion in a deal with billionaire Len Blavatnik’s streaming service DAZN Group.

However, the focus of the Saudi wealth fund has shifted in the past year. Rather than merely acting as a source of capital, it increasingly seeks to achieve financial returns and stimulate broader economic investments.

This revised strategy is taking shape against the backdrop of a recent two-week ceasefire between the US and Iran, following a conflict that saw Gulf nations bear the brunt of attacks from the Islamic Republic.

Saudi Arabia’s vital energy infrastructure experienced a series of attacks, hindering its oil and gas production and exports, despite rising crude prices.

Prior to the onset of the conflict, Riyadh officials had already begun implementing tough spending measures, initiating extensive reviews of ambitious national projects, indicating a shift toward sectors more likely to attract foreign investment. Officials are seeking partners for building World Cup stadiums instead of distributing sums to sports stars.

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