LIV Golf is reportedly seeking $250 million to survive without Saudi support. According to reporting by Axios, the Saudi-backed league is seeking up to $250 million from outside investors for future survival.
What We Know: LIV launched in 2022, funded by Saudi Arabia’s Public Investment Fund (PIF) to rival the PGA Tour. Saudi PIF currently owns nearly all of LIV and roughly 75% of each team associated with the league. Currently, LIV Golf claims it can reach profitability in just 20 months should it secure the full $250 million. However, if LIV does not, reporting states the league will be reliant on “rising team values and a new media rights deal” in order to reach profitability.
What’s At Stake: The future of the promotion lies in the hands of added investment following the PIF’s decision to pull funding at the end of this current season. According to reports, the PIF funding being pulled is to be in excess of $5 billion. Yasir Al-Rumayyan, the governor of the PIF and the chairman of LIV Golf, says he will be stepping down.
What Remains Unclear: No specific suitors have emerged yet. Outreach will likely target private equity, family offices, and individual billionaires. Furthermore, LIV’s media rights future remains hanging in the balance as well. Currently, LIV Golf is in year two of a multi-year agreement with FOX Sports. Any exact figures of rights fees paid to LIV Golf currently are not official. Although reporting shows the fees to be “nominal” in comparison to LIV Golf’s viewership.
What It Means: Saudi involvement cost LIV Golf sponsors, golfers, and audiences. The league never truly rose to the level that the original founders felt it could. Since news of funding being pulled, several LIV Golfers sought out their journey back to the PGA in hopes of a return. If the league finds private funding enough for its survival, it will be interesting to see from whom. Especially with the landscape of golf currently and a renewed energy with the PGA Tour since new CEO Brian Rolapp joined last year.
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John Mamola is Barrett Media’s sports editor and daily sports columnist. He brings over two decades of experience (Chicago, Tampa/St Petersburg) in the broadcast industry with expertise in brand management, sales, promotions, producing, imaging, hosting, talent coaching, talent development, web development, social media strategy and design, video production, creative writing, partnership building, communication/networking with a long track record of growth and success. He is a five-time recognized top 20 program director in a major market via Barrett Medi’s Top 20 series and has been honored internally multiple times as station/brand of the year (Tampa, FL) and employee of the month (Tampa, FL) by iHeartMedia. Connect with John by email at John@BarrettMedia.com.
