LIV Golf’s investor search hasn’t reached Jon Rahm’s wallet … just yet
LIV Golf has said its search for a strategic investor is progressing positively, despite reports of potential layoffs.
The Saudi-backed golf league held a staff meeting on 8 July, in which it warned of possible changes to its workforce. However, a LIV Golf spokesperson said that there are no changes at this moment in time, and the meeting was part of a process to cover all possible outcomes.
“As our process to identify strategic investors moves forward in a positive direction, and as part of responsible planning for a range of possible outcomes, we have notified employees in the US and UK of potential future actions related to the League’s corporate workforce,” said the LIV Golf spokesperson.
“This step is being taken in accordance with legal obligations in each jurisdiction. We deeply appreciate our employees’ continued dedication as we work toward a strong and sustainable future for the League.”
Saudi funding runs dry
LIV Golf has been on the hunt for new potential investors since April, when the league told players that funding from Saudi Arabia’s Public Investment Fund (PIF) would not continue next season.
PIF, the Kingdom’s sovereign wealth fund, has been the league’s primary source of funding since its inception in October 2021. It has poured $5bn into the circuit over the past five years.
Finding a like-for-like replacement for that level of investment will be especially difficult. Compounding the issue is the fact that the league placed significant emphasis on its financial backing to attract players away from the PGA Tour, making funding its main pull.
Jon Rahm‘s move away from the PGA Tour was one of the most discussed examples of this strategy, with him reportedly earning around $570m by making the switch in 2023. Throughout the player exodus, the PGA Tour was candid by saying that it could not afford to compete financially.
Earlier this week, ahead of the Genesis Scottish Open, Rahm was asked whether he could help keep the league running.
“As far as putting my money into it, they have not asked me to do that yet,” he said.
“So I don’t know if they will or not. It’s not something that they have asked me, but there has been many different avenues to try to make it different, what we’ve had till now. They haven’t asked me to put my money in yet.”
Another possibility, albeit a somewhat drastic one, was to merge LIV with the PGA Tour. Negotiations have taken place over the past couple of years in response to concerns that the split had fractured the sport for players and fans. However, the discussions failed to make any real progress despite US President Donald Trump working to get a deal across the line.
Players who made the switch, such as Rahm, will likely seek a return to the PGA Tour but will have very little negotiating power.
PIF separates from sport
LIV Golf is part of a large portfolio of sports investments by PIF that are also seeing reduced funding.
In snooker, one of the investment fund’s more recent ventures, it was recently announced that the Riyadh Season World Masters of Snooker will not be renewed at the same funding level.
In football, PIF owns an 85% stake in Newcastle United and recent reports suggest the group is willing to sell a 25% share. This could align with recent decisions such as the sale of Anthony Gordon to Barcelona and reports that the club’s captain Bruno Guimaraes could also leave.
It appears to be more of a right-sizing than a complete exit from sport, however. Esports and boxing are two sectors where investment does not appear to be slowing, with the upcoming Esports World Cup in August boasting a record-breaking $75m prize pool.
