Saudi Arabia's public fund to withdraw LIV Golf funding

Saudi Arabia's Public Investment Fund Ends LIV Golf Support

Saudi Arabia's Public Investment Fund (PIF) has confirmed it will withdraw its financial backing from the breakaway LIV Golf league at the end of the 2026 season, according to multiple reports. The decision, announced in a statement, marks a dramatic shift for a circuit launched in 2022 as a rival to the PGA Tour with billions in Saudi capital.

"PIF has made the decision to fund LIV Golf only for the remainder of the 2026 season," the fund said. "The substantial investment required by LIV Golf over a longer term is no longer consistent with the current phase of PIF's investment strategy."

Reports indicate that LIV Golf has spent $5.3 billion since its inception, with total outlays likely to exceed $6 billion by year's end. The circuit lured top names such as Bryson DeChambeau, Phil Mickelson, Brooks Koepka, and Dustin Johnson with contracts worth hundreds of millions, while raising prize money to $30 million per event.

New Board and Strategy

In response, LIV Golf announced a new board and a diversified investment model aimed at attracting long-term financial partners. Gene Davis of the Pirinate Consulting Group and Jon Zinman of JZ Advisors are leading the newly created board, with Davis as chair. The league said it is transitioning "from a foundational launch phase to a diversified, multi-partner investment model."

Notably, Yasir Al-Rumayyan, the PIF governor who helped create LIV Golf, is no longer listed as its chairman, according to reports.

Impact on Tournaments and Players

LIV Golf and Louisiana officials have postponed the tour's event in New Orleans, originally scheduled for June 25-28. Louisiana Governor Jeff Landry said the state expects the return of $3.2 million in incentive funds already paid, with discussions ongoing for a possible event in the fall.

Australian golfer Cameron Smith, captain of the all-Australian Ripper GC team, said he has been given "every assurance" that LIV Golf will continue beyond 2026. "Since joining LIV, I've learned to live with, you know, speculation," Smith said, adding, "I'm 32, so I've got a while yet." Smith, the 2022 British Open winner, has struggled with form recently, missing the cut at the Masters for a sixth consecutive major.

The PGA Tour has reportedly offered a path back to some LIV players, but with stipulations. Smith, along with Bryson DeChambeau and Jon Rahm, turned down such an offer earlier this year, with Smith saying, "I am here to stay, I'm here to support LIV."

PIF's Broader Strategy

PIF emphasized that it remains committed to deploying capital internationally in line with its investment strategy, including "substantial current and future investments in various sports." The fund's decision comes amid reports of a major budget deficit and increased spending on defence. According to BBC reporting, the change in strategy reflects a new emphasis on "sustained value creation…and maximizing long-term returns."

Saudi Arabia's sports investments have been controversial, with critics accusing the kingdom of "sportswashing" its reputation following the 2018 killing of Jamal Khashoggi. The country's spending has extended to its domestic football league, which attracted stars like Cristiano Ronaldo, and to a majority stake in Premier League club Newcastle United.

Newcastle United Unaffected

Newcastle United manager Eddie Howe said the club's Saudi owners remain committed to its success despite the LIV Golf withdrawal. "The owners and representatives of PIF were over, and it was constructive, good meetings," Howe told reporters. "They clearly care so much about the football club." PIF acquired Newcastle in October 2021, and no move to sell the club has been reported.

Perspectives

PIF and LIV Golf

The Public Investment Fund frames its withdrawal as a strategic shift, stating that long-term funding of LIV Golf is "no longer consistent" with its current investment priorities. LIV Golf, for its part, presents the change as an evolution to a multi-partner model, with its CEO Scott O'Neil expressing confidence in the league's survival.

Critics and Observers

Critics have long viewed Saudi Arabia's sports investments as an attempt to distract from human rights concerns. The BBC notes that the country's international standing was "severely damaged" by the Khashoggi killing, and Deutsche Welle reports that PIF's sports involvement has been "controversial" due to Saudi Arabia's human rights record.

Players and Australian Golf Officials

Cameron Smith remains publicly confident about LIV's future, while PGA of Australia chief executive Gavin Kirkman says he will meet with Smith to discuss his options. Kirkman expressed hope that "the global golf ecosystem really comes together" to ensure top players can compete, regardless of tour affiliation.