The news has been reported by three quite authoritative outlets, namely the Financial Times, The Athletic and Sportico, so it can be considered at least realistic: after accumulating losses of five billion dollars, Saudi Arabia is considering no longer financing LIV Golf, that is, the golf circuit created in 2022 to compete with the historic PGA Tour. There is still nothing official or verifiable; in fact, the management of LIV Golf, which is part of the sovereign fund PIF, has already clarified that the next scheduled event – set to take place in Mexico City – will proceed as planned. But in the meantime, the rumors of a withdrawal are becoming increasingly insistent. And they come from various internal sources within the organization, starting with the executives themselves. Apparently, they have already been invited to look for new jobs. Even theTelegraph has effectively confirmed the news, reporting on an urgent meeting scheduled in the coming hours in New York.
As mentioned, the problem would stem from the enormous losses generated in the first four years of LIV Golf’s existence. The organization’s CEO Scott O’Neil, former executive of the Philadelphia 76ers and New Jersey Devils, had stated to the Financial Times – not coincidentally, one might say – that the circuit would only start generating profits in five to ten years. Consequently, it is inevitable that the PIF fund has decided to reconsider its commitment to LIV Golf: after the latest meetings, the Saudi entity announced a new five-year investment plan strongly focused on “the development of competitive national ecosystems.” The fact that LIV Golf has not even been mentioned in the various statements has an unequivocal meaning.
The launch of LIV Golf, it must be said, had a disruptive effect on the world of golf: quite a few top players signed contracts for astronomical sums, consequently, the PGA Tour also adjusted its compensation upwards. According to data collected and reported bySportico, the PGA Tour increased its prize money by 125 million dollars, reaching a total of 643 million dollars, of which 100 million is allocated to the Player Impact Program and 75 million to the Tour Championship. The following year, the total jumped to 680 million dollars. It cannot be a coincidence, and in fact, it is not. However, these investments have not led LIV Golf to become a profitable project. Furthermore, it should be noted that the war in the Middle East, as was inevitable, has made the sporting future of the PIF Fund even more uncertain, at least in the short term.