The Saudi sovereign fund will no longer finance the LIV Golf circuit and its stars, a consequence of the Persian Gulf crisis

The LIV Golf golf tour is in trouble. Saudi Arabia’s sovereign wealth fund will stop financing the “dissident” circuit that it has supported since its launch in 2021, a Saudi spokesperson confirmed on Thursday.

“The PIF has made the decision to finance LIV Golf only for the remainder of the 2026 season,” said a representative of the Saudi Public Investment Fund (PIF). “The considerable investment required by LIV Golf in the long term is no longer compatible with the current phase of the PIF’s investment strategy,” said this source.

Rumors about this withdrawal had been buzzing for days after several American media such as the New York Times and the Wall Street Journal had recently assured that the PIF was considering stopping financing this circuit.

This is ultimately not so surprising given the context. The conflict with Iran in the Persian Gulf is monopolizing Saudi Arabia’s resources. The country has therefore scaled back some of its sports megaprojects.

Sport, used as a tool of soft power and a showcase of the country’s ambitions, has paid the price, like the Asian Winter Games planned for 2029 in the futuristic megalopolis of Neom which have since been reallocated. In mid-April, the PIF had already announced the sale of 70% of the shares it held in the Saudi football club Al-Hilal, where Karim Benzema plays, almost three years after its acquisition.

Search for new investors

LIV Golf said on Thursday it was seeking to secure “long-term financial partners”. LIV Golf, founded in 2021 to directly compete with the PGA Tour, issued a statement that, significantly, did not mention Saudi Arabia.

“LIV Golf today announced the appointment of new members to the Board of Directors, as the league focuses on finding long-term financial partners to support its transition from an initial launch phase to a diversified, multi-partner investment model,” the LIV statement said.

There was also no mention of Yasir Al-Rumayyan, governor of the Saudi Public Investment Fund (PIF), who co-founded LIV Golf and is a historic board member.

The press release simply mentioned the arrival of two new members to the board of directors, Gene Davis and Jon Zinman. LIV Golf described the duo as “seasoned experts with a proven track record of managing complex situations and creating value for global organizations to guide the league into its next phase.”

The league has spent billions of Saudi riyals to attract many of the world’s best players, including American Bryson DeChambeau and Spaniard Jon Rahm and Briton Tommy Fleetwood. Reports began circulating earlier this month that this dissident circuit was on the verge of collapse due to the possible withdrawal of Saudi funding.

Rumor has it that LIV’s wealthy backers in Riyadh have lost interest in the extremely expensive project, which has already cost them more than five billion dollars.

LIV Golf CEO Scott O’Neil denied the reports, pledging to continue the season “full steam ahead”, while admitting the league would “probably” need to raise funds in the future. A collapse of LIV Golf could jeopardize the careers and incomes of its star players.

The revenge of the PGA tour

Players like DeChambeau left the PGA Tour under turbulent circumstances and could face hefty penalties if they tried to return. On the PGA tour side, it is time for revenge after the backstabbing of 2021. “There were rules, and they were broken,” Brian Rolapp, general manager of the PGA Tour, told the Journal this week. “Who says rules, says responsibility. » Some star players in demand like Rory McIlroy, recent double winner of the Augusta Masters, had defended the PGA line.

Among the “traitors”, some have already fled the Saudi “super tanker”. Brooks Koepka became the first LIV player to return to the PGA fold when the five-time major winner jumped ship last December.

The 35-year-old American’s return was made possible by the PGA’s creation of a “member re-entry” program, described as providing “a path back to elite players who are no longer subject to contractual restrictions preventing them from complying with the rules and regulations of the PGA Tour.”

LIV Golf on Tuesday postponed its planned June tournament in New Orleans, with officials saying they hoped to reschedule the event later in the year. The next LIV tournament is scheduled for May 7-10 at Trump National, in the Washington suburbs. His last scheduled tournament this season is scheduled to take place in Indianapolis from August 20-23. Nothing says it will see a new season.