Saudi PIF to pull LIV funding: Answering 5 burning questions
The Saudi Public Investment Fund is on the verge of pulling funding from LIV Golf, putting into question the future of the struggling league beyond the 2026 season.
LIV officials, players and staff will be officially notified on Thursday that the league is losing Saudi financial support at the end of the 2026 season, ending weeks of speculation – including from LIV’s CEO – that the Saudis might be out of the business of running the golf league. I The Wall Street Journal first reported the news Wednesday evening, followed by several other news outlets, including CNBC.
The news casts fresh doubt on LIV’s future as a competitive entity, which has been funded by more than $5 billion since its launch in 2022 and relies on regular cash flow to stay afloat while enduring significant financial losses. Reports first called for Saudi-backed LIV futures two weeks ago, when the PIF announced a new set of plans aimed at strengthening the fund’s balance sheets. Reports at the time suggested that LIV was fully funded by the PIF through the conclusion of the 2026 season, but left the league’s plans largely inactive beyond the club tournament at the end of August.
Although the future of the Saudi investment was not confirmed at the time of the news, several reports from Financial Times, New York Times again The Wall Street Journalamong others, they suggested that the Saudi withdrawal from LIV was expected, if not inevitable. In a deleted interview with LIV’s European TV rights manager, even LIV CEO Scott O’Neil suggested the league could be on its own financially at the end of the season.
“The truth is, he’s been funded all season,” O’Neil said in the clip, which was later removed and reposted without a quote. “Then work like crazy as a business to build a business and a business plan to keep us going.”
I WSJ The report claims that Saudi investment in the league will cease after the 2026 season, and cites a “person familiar with LIV’s thinking” suggesting that the league has already begun the process of seeking foreign investors. A spokesperson for LIV did not immediately respond GOLF.com’s request for comment.
So, what does this all mean? And why is it happening now? Let’s answer your questions below.
5. Is it really over with the Saudis and LIV?
It sure looks like that! Assuming nothing changes, the PIF will sail off into the sunset after the 2026 season is done in late August, leaving LIV without a financial sponsor for the first time in the league’s existence.
4. What will LIV do without Saudi funding?
It is not clear! The PIF has played a key role in LIV’s existence since the league’s inception, spending billions in start-up costs and maintaining a constant presence over the league as it tries to find golf. In fact, perhaps the most influential aspects of Saudi influence in LIV cannot be explained in dollars and cents: The financial security provided by PIF meant that LIV had no immediate obligation to turn to profit – a strategy that allowed the league to act as a startup, perpetuating losses in pursuit of market share.
Over the years, LIV has spent a fortune on celebrity performers, high-profile concert guests, production costs and event planning in an effort to build a fan base and list of sponsors. The cost of that engine — and the manpower needed to operate it — has skyrocketed: more than $5 billion, according to the agency’s budget. But LIV has always operated under the assumption that its funding from the Saudis was secure.
“No, in fact, we have not heard anything other than this, Yasir [Al-Rumayyan, the PIF governor] he told us at the beginning of the year,” said Sergio Garcia in Mexico City two weeks ago: “That he is behind us, that they have a long-term job.”
Under O’Neil, the league made progress in reducing losses, but O’Neil indicated that it could still be “five to 10 years” before turning a profit. So, where does that leave the league without Saudi sponsorship in just five minutes months?
Perhaps the easiest way forward for LIV would be to find a new investor who can stretch the league’s path to profitability. In his interview with the European TV rights holder, O’Neil suggested that this is the most popular option for LIV.
“This idea that you should raise money? Maybe,” he said. “This is a business. But if we keep the trajectory going the way we are and the revenue growth, this is going to be a really good business for a really long time.”
3. Why is PIF out of golf?
The PIF’s decision to withdraw funding from LIV is in line with a broader shift away from the sport, which was announced by the private equity fund in mid-April. A few weeks ago, the PIF sold its illustrious football team, Al-Hilal, distanced itself from the flag football business with Tom Brady and now, according to reports, has pulled funding from LIV.
Yasir Al-Rumayyan, PIF governor, admitted that the Saudis plan to shift their priorities away from sports betting and moonshots, and to more traditional investments, suggesting that the PIF “reviews its investments and deals” and “reevaluates priorities.”
One of the reasons for this pivot comes from changing financial realities for the Saudis, who are cash-strapped (by comparison) after years of big bets on a well-publicized effort to diversify their economy (the country’s leader, Crown Prince Mohammed Bin Salman, named it Vision2030). In recent months, the PIF has announced plans to withdraw most of its spending from Vision2030, including withdrawing support behind the $500 billion Megacity Neom, after years of construction delays and budget problems.
Geopolitical pressures also play a role. The Saudi government has seen its main economic driver, oil, oil, a rapid decline in the Iranian blockade of the Strait of Hormuz, with exports falling from 10.4 million barrels per day to 7.25 million barrels per day. The war also caused the government to significantly increase its defense spending, including a recent $9 billion deal with the United States.
Still, the private equity fund’s ties to the league can’t be overstated: The league’s offices in New York’s Hudson Yards are in the same building as several PIF-related projects, including Neom, and Al-Rumayyan has been a frequent presence at LIV events and formed friendships with several players.
2. What happened to all the other LIV events? What about its players?
It’s business as usual, with one notable exception: LIV recently postponed its mid-June event in New Orleans until the fall, citing heat issues and competition with the World Cup as reasons for the postponement.
LIV’s remaining players are still under contract until the end of the season, including Bryson DeChambeau, whose contract expires at the end of the season.
1. When will we know more?
It’s hard to say, although it makes sense that summer and fall will be busy times on LIV CEO Scott O’Neil’s calendar.
