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LIV Golf faces uncertain future amid Saudi funding concerns
The breakaway golf tour, bankrolled by Saudi Arabia's Public Investment Fund (PIF), is under scrutiny as reports suggest financial backing may be withdrawn. LIV Golf, which lured top players like Jon Rahm with multi-million-dollar deals, has yet to turn a profit despite over $5 billion in investment since 2021.
Leadership insists on business as usual
LIV Golf CEO Scott O'Neil dismissed reports of an imminent shutdown in an internal email to staff on Wednesday, stating the 2026 season would proceed "uninterrupted and at full throttle." However, O'Neil did not address long-term plans beyond this year, fueling speculation about the tour's viability without PIF support.
Sources within European golf told BBC Sport they expect 2026 to be LIV's final season, with one noting the tour's leadership may be "trying to convince itself" alternative revenue streams can be secured. The tour's financial losses have ballooned, with net losses outside the U.S. reaching $462 million in 2024 alone.
Financial struggles despite record investments
LIV Golf's total investment surpassed $5 billion earlier this year after a $266.7 million capital injection. Despite this, the tour remains far from profitable, with O'Neil previously estimating a 5-10 year timeline for breaking even. A LIV source claimed four of its 14 events and 10 of its 13 teams would be profitable in 2026, citing a $100 million revenue increase after the first five events of the year compared to 2025.
Revenue growth was reported across sponsorships (up 40%), ticket sales (130%), hospitality (67%), merchandise (26%), and YouTube content (303%), though specific figures were not disclosed. LIV executive Katie O'Reilly stated the goal was to build "13 billion-dollar franchises," though the tour is not yet close to achieving this.
Player pathways and potential fallout
If LIV Golf folds, players may face hurdles returning to the PGA Tour or DP World Tour. Some, like Brooks Koepka, have already paid fines (reportedly £63 million) to rejoin the PGA Tour under its 'Returning Member Programme.' Others, such as Jon Rahm and Lee Westwood, remain in dispute with the DP World Tour over fines and suspensions.
Patrick Reed, who left LIV earlier this year, has been competing on the DP World Tour and will regain PGA Tour access in 2027. Meanwhile, Tyrrell Hatton and seven other players resolved their disputes by paying fines and agreeing to additional conditions, allowing them to continue competing.
Saudi Arabia's shifting investment strategy
PIF's potential withdrawal from LIV Golf aligns with a broader shift in Saudi Arabia's investment approach. The kingdom recorded a $73 billion budget deficit in 2025 due to lower oil revenues and increased spending, exacerbated by the Iran war disrupting oil exports. PIF's 2026-2030 strategy emphasizes "more sustainable investments," signaling a move away from high-risk, long-term projects.
"The new plan suggests PIF is no longer willing to keep pumping resources into projects that offer little prospect of profitability. The perception that resources-and ambitions-were limitless has given way to a more realistic assessment of what is feasible in a more constrained financial environment."
Dr. Kristian Ulrichsen, Baker Institute
Despite this shift, Saudi Arabia remains committed to other high-profile projects, including the 2034 World Cup and the Neom Super City. However, the latter has already been scaled back. Domestically, PIF recently sold 70% of Al-Hilal's share value (worth £275 million) to Kingdom Holding Company, though sources insist this does not signal a reduced interest in sports investments.
What's next for LIV Golf?
The tour's immediate future will be tested at its ongoing event in Mexico, the sixth of 13 scheduled tournaments in 2026. Players, including Sergio Garcia, have been assured the tour will continue "for many years," but skepticism remains. The remaining schedule includes events at Donald Trump-owned courses in the U.S. and the JCB Golf and Country Club in the UK.
For now, LIV Golf's survival hinges on whether PIF's financial support continues-or if the tour can prove it can stand on its own.
