Saudi Arabia to withdraw multi-billion dollar backing from LIV Golf

Saudi Arabia's Public Investment Fund (PIF) is set to end its substantial financial backing of LIV Golf at the conclusion of this season, creating significant uncertainty about the breakaway tour's future. BBC Sport has learned that this strategic withdrawal marks a pivotal moment for the controversial golf series.

The tour plans to announce a "new strategic plan" on Thursday, outlining its approach to securing alternative financial investors. This announcement will coincide with the introduction of new board members as the organization seeks to establish fresh leadership direction.

Sources close to the situation indicate that PIF governor Yasir Al-Rumayyan may step down from LIV's board. Al-Rumayyan, who co-founded the series in 2021, has served as its most influential figure throughout its existence.

Recent scheduling changes reflect the tour's current challenges. LIV postponed its June event in New Orleans this week, creating a significant gap in its US tournament calendar. The tour will have no American events between May 10 and August 6, when competition resumes at Trump Bedminster in New Jersey.

Despite these setbacks, BBC Sport understands that LIV remains committed to maintaining its status as an international tour with a team-based format. Officials describe ongoing discussions with potential investors as "constructive," with executives exploring multiple opportunities to "reposition" the business model.

According to sources, LIV Golf projects earnings of $100 million (£86 million) more in 2026 compared to the previous season. However, industry observers acknowledge that the series will likely require significant downsizing, including a substantial reduction in the number of events.

Team captains have been briefed that the organization will reveal its plans for securing new financial backing during Thursday's announcement.

Mounting Financial Pressures

LIV Golf, which adopted a traditional 72-hole format this year, has required unprecedented financial support from PIF since its inception. The total investment exceeded $5 billion (£3.8 billion) after an additional $267 million (£229 million) capital injection earlier this year.

The tour's financial performance outside the United States shows significant challenges, with net losses of $462 million (£340 million) in 2024. This brings cumulative losses to over $1.1 billion (£810 million) since the tour's establishment in 2021.

When accounting for the substantial investments in the US operations, total losses are projected to reach several billion dollars. These figures highlight the massive financial commitment required to establish and maintain the alternative golf tour.

Earlier this month, LIV Golf CEO Scott O'Neil assured players that the 2026 season would proceed "as planned and uninterrupted," addressing speculation about the tour's potential collapse. However, his statement did not address longer-term sustainability concerns.

The timing of this withdrawal aligns with PIF's announcement of a revised investment strategy, emphasizing more sustainable and financially viable ventures across its portfolio.