LIV Golf is Seeking $350 Million in Funding Amid Crisis After Saudi Fund Withdrawal
Reuters, CNBC and other media outlets, citing sources, reported that global golf league LIV Golf is seeking $250 million to $350 million in funding, planning to reduce the number of events from the original 14 per year to 10, and granting equity to players, to address potential difficulties after the Saudi Public Investment Fund (PIF) ends its support.
Last week, Bloomberg reported that LIV had begun evaluating whether bankruptcy could be a potential means to restructure the business and achieve profitability. However, a LIV Golf spokesperson said in a latest statement: "LIV Golf is fully focused on securing a transaction that ensures the long-term viability of the league. In the coming days, we will share our rigorous business plan framework with potential capital partners."
Sources said that investment bank Ducera Partners, which advises LIV Golf, began introducing the plan to potential investors last Thursday. They added that league players have been briefed on the plan and responded positively.
LIV Golf's investor presentation shows that the 10 events in the 2027 season will replicate the success of its high-profile tournaments in South Africa and Australia. The presentation also notes that LIV has achieved year-over-year growth in sponsorship, partnerships, ticket sales, retail, and YouTube viewership.
In April, PIF stated that it will stop funding LIV Golf after the 2026 season, i.e., at the end of August, with a statement saying: "The significant investment required by LIV Golf is no longer aligned with the fund's future investment strategy." Since LIV Golf's inception in 2022, PIF has invested over $5 billion in it. (Related reading: Report: LIV Golf Faces Saudi Fund Withdrawal)
Details of PIF's annual injections into LIV are as follows:
- 2021: $1.2 billion
- 2022: $1.3 billion
- 2023: $200 million
- 2024: $1.2 billion
- 2025: $1.1 billion
- 2026: $266 million injected so far, with an additional over $700 million pledged in February.
Above: American golfer Lucas Herbert wins the latest 2026 LIV Golf Virginia individual title
LIV Golf is known for its lucrative prize money. Golf analyst Jamie Kennedy shared on his personal x.com account: Since its launch in 2022, LIV Golf has paid approximately $1.53 billion in tournament prize money, not including any signing bonuses. This has enabled LIV Golf to attract many golf superstars from the PGA Tour, including Bryson DeChambeau, Jon Rahm, Phil Mickelson, Dustin Johnson, and Brooks Koepka.
Rahm said before last week's PGA Championship that he is confident in LIV Golf's direction.
In February, LIV Golf also announced a series of senior appointments in the Asia-Pacific (APAC) region to further support the league's continued growth in the region and deepen its local presence in key markets. (Related reading: LIV Golf Appoints Three APAC Executives to Further Support Events in Australia, Hong Kong, Singapore, and South Korea)
| Sources: Reuters, CNBC, Bloomberg, Orange Bay Sports historical articles
| Image source: LIV Golf official website