Saudi Arabia’s
potential reversal on its
costly golfing venture
is part of a wider pullback on
sports investing
, as it looks to prioritize returns, rather than cultural influence.
LIV Golf
, the upstart league that challenged the supremacy of the PGA Tour, has cost the
Saudi Public Investment Fund
over US$5 billion since its launch in 2022. Despite that investment, LIV has struggled financially, citing challenges with low attendance and poor television viewership, and now PIF may cut its funding.
The appetite to spend on such an expensive endeavour was part of the country’s push to use a variety of sports as cultural, political and social investments to help the country quickly expand its influence.
That strategy was vindicated
in December 2024 when — following an uncontested bidding process — FIFA formally confirmed Saudi Arabia as the World Cup host for 2034, the first time the nation had ever hosted a flagship international sports tournament.
Over the past year, PIF, which has about US$1 trillion in assets under management, has faced financial struggles and switched to treating its sports holdings as investments that need to make a return, a move that brings athletics in line with other sectors within the fund, according to people familiar with the matter.
Spending billions on projects
such as LIV Golf and over-paying superstars to join its domestic football league could no longer be justified, the people added, asking not to be named discussing private information.
That has PIF prepared to cut its funding to LIV Golf, according to people familiar with the matter. Discussions are ongoing and could include looking to find new backers of the league, one person said. LIV has previously hired Citigroup Inc. to find investors into LIV Golf teams. The LIV Golf chief executive said in a memo on Wednesday that the tournament will carry on despite the speculation.
Other sports have been impacted. The Women’s Tennis Association season-ending championship will leave Riyadh after this year’s tournament. While the WTA initially expressed interest in extending the three-year deal, negotiations ultimately fell through. Saudi Arabia also exercised an early opt-out clause to terminate its agreement to host the Next Gen ATP Finals ahead of schedule.
The PIF was also expected to be a major backer in the NBA’s push to launch a European league, according to multiple reports. However, the desire to invest has met internal pushback over recent weeks, according to a person familiar with the matter.
The PIF unveiled its new 2030 strategy in Riyadh this week during a series of presentations. The only sports investments mentioned were domestic, including the 2026 World Cup and its backing of SURJ Sports Investment, its fund that has refocused on Saudi-based deals.
Saudi Arabia is still keen to grow certain sports investments, the people said. It remains focused on maintaining its investment in Newcastle United, and is still in talks regarding a potential US$500 million deal with World Athletics in the sport’s commercial rights.
Spokespeople for LIV and PIF didn’t respond to multiple requests for comment.
LIV Golf chief executive Scott O’Neil responded to speculation about the league’s future in a memo to staff, saying that the current season, which has a tournament in Mexico this week, will continue as “planned, uninterrupted.” In the communication, which was obtained by Bloomberg News, the CEO touted a recent tournament in South Africa attracting more than 100,000 fans, while saying “the life of a startup movement is often defined by these moments of pressure.”
The cold shoulder to LIV Golf potentially brings a jarring end to the entity. It made a big splash early on with massive deals to lure players, including roughly US$200 million for Phil Mickelson. It aimed to differentiate from the PGA Tour with shorter tournaments and more theatrics. Supporters called it the future of the game, while critics called it a “
sportswashing
” vehicle for the Saudis.
The Athletic reported that members of the LIV Golf leadership team were first told on Sunday, following the Masters Tournament, that they would soon lose their positions. Executives at LIV Golf were expecting an announcement on Thursday about their future, according to people familiar with the matter. It is unclear where any announcement would come from, or if it would be made public.
Bloomberg reported in January that LIV’s Saudi backers are keen for the league to continue in some form, especially after sinking so much money into it, but are unwilling to keep funding the competition indefinitely if it keeps up its rate of losses. LIV Golf lost close to US$500 million in 2024, according to United Kingdom company filings.
A variety of Saudi investment vehicles have spent billions on sports over the past five years. In 2021, the PIF acquired the Premier League football team Newcastle United. The 2022 launch of LIV Golf epitomized the PIF’s new approach, upsetting the golfing establishment and attracting some of the sport’s best known golfers.
The Saudi Pro League also became home to some of the sport’s biggest stars, such as Cristiano Ronaldo, Neymar and Karim Benzema, after a more than US$1 billion spending spree over the past few years.
By early 2025, the splurge showed no sign of slowing down. In February last year, SURJ spent about US$1 billion on a deal with billionaire Len Blavatnik’s streaming service DAZN Group.
But the Saudi wealth fund’s focus shifted over the last year. Instead of primarily acting as a capital source, it’s increasingly striving to generate financial returns and serve as a catalyst for broader economic investment.
This updated strategy is unfolding against the backdrop of a two-week ceasefire between the United States and Iran. The recent war saw Gulf nations absorb the majority of attacks from the Islamic Republic. Saudi Arabia’s crucial energy infrastructure suffered a series of strikes, hampering its oil and gas production and exports, even as crude prices climbed.
Before the conflict began, officials in Riyadh had already started implementing difficult spending decisions. They ordered widespread reviews of ambitious national projects, signalling a pivot toward sectors more likely to attract foreign investment. Officials are looking for partners to help build World Cup stadiums, rather than handing millions to sports stars.
—With assistance from Randall Williams and Omar El Chmouri.
Bloomberg.com
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