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Saudi Arabia’s sovereign wealth fund is on the verge of cutting its support for LIV Golf, in a move that would jeopardise the future of a multibillion-dollar project that sparked a civil war across the sport.
An announcement on the future of the kingdom’s involvement in LIV, which has racked up huge losses since being set up five years ago, could come as soon as Thursday, according to people familiar with the matter.
The demise of LIV would represent a significant blow to the kingdom’s near $1tn Public Investment Fund, which has invested about $5bn in the tour, and to its governor Yasir al-Rumayyan, a keen golfer who was the key figure in its rise.
The deliberations come as PIF announced a new five-year investment strategy on Wednesday that will narrow its focus as it reprioritises spending. The sovereign wealth fund unveiled the strategy as it takes stock of a decade-long spending splurge at home and abroad.
The plan was drawn up before the US-Israel war against Iran, but al-Rumayyan said on Wednesday that “of course the war would add more pressure to reposition some priorities”.
No final decision has yet been made on the future of the LIV project, some of the people said, with one adding that PIF was actively considering the extent and duration of its support. LIV declined to comment. PIF did not respond to a request for comment.
The golf blogger Ryan French on Tuesday night reported that LIV’s future was soon to be decided, according to his sources.
The kingdom’s potential pullback from golf will reverberate through professional sport, which has grown accustomed to its lavish spending in recent years. Saudi companies are key sponsors of events ranging from this summer’s Fifa World Cup to Formula 1 racing.
LIV has shaken up a sport steeped in tradition with a tour that promised to be golf but louder, creating a global team-based competition.
The Saudi-backed tour paid life-changing sums to lure many of the world’s top golfers — including Jon Rahm and Bryson DeChambeau — away from the dominant PGA Tour. But some of its top stars, such as Patrick Reed and Brooks Koepka, recently left LIV to rejoin the PGA Tour.
LIV chief executive Scott O’Neil told the FT in February that the tour wouldn’t be profitable for another five to 10 years. Its UK entity lost almost $500mn in 2024.
Tensions between LIV and the PGA Tour escalated to the point of litigation, with the two sides trading charges of treachery and anti-competitive behaviour. The tours reached a legal truce in June 2023 that appeared to set the stage for a merger that ultimately never materialised.
While LIV events in Australia and South Africa garnered big crowds, the league lacked major television rights deals that are typically the engine of pro sports.
After an initial wave of high-profile signings, other top players shied away from LIV because it lacked the world ranking points needed to qualify for the four major championships. LIV did secure ranking points this year, although the allocation remains modest.