Even the most stubborn owners of a failing business eventually must face the facts that their business may never become profitable.
LIV Golf is owned by Saudi Arabia’s Public Investment Fund (PIF). The oil-rich nation’s investment conglomerate is worth more than $1 trillion. It holds a variety of assets which are generally expected to deliver a reasonable rate of return to the fund.
To date, LIV Golf has run through an estimated $5 billion of Saudi PIF funds during its first four years of operation.
The sports media (chasing rumor after rumor hoping for bad news) pounced on a story this week that the Saudi PIF may be ending their support for LIV Golf soon.
That hasn’t stopped the anti-LIV Golf crowd from generating headlines about a looming closure of the upstart league.
LIV Golf president Scott O’Neill emerged Thursday prior to the opening round of the tour’s event in Mexico City to say that the league is fully funded through the August, 2026 season ending events.
He was asked, “What about next year”? No comment.
At some point, every business needs to be able to stand on its own. The Saudi group was initially excited and proud to begin a worldwide professional golf operation. It hoped to rival the PGA Tour and the DP World (European) tours.
Losing $1 billion per year only amounts to about 1% of the Saudi PIF assets.
Make no question about it, the Saudis’ investment in LIV Golf has become a giant money pit with no end in sight.
By early 2022, the Saudi PIF hired golf legend Greg Norman to put together a new worldwide golf league.
Norman dangled plenty of bonus signing money (well over $100 million in several cases) to lure some of the PGA Tour’s biggest stars to jump leagues that spring.
At least $1 billion would eventually be paid just to have these players under contract for three to four years (depending on each player’s negotiated deal). American golf stars such as Phil Mickelson, Brooks Koepka, Dustin Johnson, and Bryson DeChambeau all made the leap to LIV Golf.
The new LIV Golf League initially offered tournament purses of $25 million (now up to $30 million) to a field of just 54 (or so) players. That was nearly three times the $8 million average tournament purse being offered by the US-based PGA Tour.
Each LIV event (prior to 2026 when the league went to a 72-hole format) initially featured a 54-hole competition.
Reminder – LIV is the number 54 in Roman numerals.
In addition to individual titles, LIV golfers also participate on a season-long four-man team. Every tournament pays an extra $5 million to the three teams posting the lowest total scores for the week.
It appeared that money seemed to be no object to the Saudi PIF. Each year has seen insufficient revenues to cover massive losses.
LIV Golf plays more than half of its events outside of the United States. That presents a big problem in trying to attract a US television audience.
A tournament in Singapore, Australia, or South Africa will be played in a time zone which makes “live” TV coverage in the US quite unattractive to home viewers. Who is going to watch golf on television during the overnight hours?
LIV Golf’s actual on-air television coverage itself (which I find more interesting to watch than most PGA Tour events) has been hampered by poor distribution.
The year 2025 brought the current television deal with FOX Sports.
However, finding LIV Golf on television from day-to-day on one of several different FOX outlets is akin to playing “Whack-a-Mole” daily.
It’s quite confusing and almost as if FOX is intentionally trying to bury the golf coverage. See for yourself at this link.
The Saudi Public Investment Fund spent at least $1 billion just for signing bonuses for the players. LIV Golf has then lost about $1 billion per year on bloated tournament purses and oversized operating expenses. Television audiences have been shrinking (primarily due to lousy TV placement) instead of growing.
The trends are not the friends of LIV Golf.
“Insanity is doing the same thing over and over again and expecting different results”
That saying is often attributed to genius Albert Einstein. It definitely applies to the Saudi owners of LIV Golf as Season #5 nears the halfway point.
The media pounced on information which surfaced this week that LIV Golf is likely “toast” – perhaps even before the end of this season in late August.
The usual suspects (including LIV Golf’s biggest “hater” – Brandel Chamblee at Golf Channel) have reacted with “I told you so!” glee.
Not me. I fully admit to have been rooting for LIV Golf to find its niche in professional golf.
My youthful self in the 1970’s was a big supporter of the American Basketball Association. I still shoot hoops with my ABA red, white, and blue basketball!
The ABA’s innovative three-point shot helped to make its basketball games rather unique and more fun. This creative new league also placed an emphasis on higher-scoring contests in contrast to the NBA’s more deliberate playing style of the 1970’s.
The ABA placed franchises into growing markets such as Denver, San Antonio, Indianapolis, Salt Lake City, and Louisville. Yes, there were numerous franchise failures in the ABA. The league was woefully undercapitalized and lost millions trying to play in weak markets.
ABA franchises outbid the NBA for the services of future Hall-of-Fame stars like Julius (Dr. J.) Erving, Moses Malone, George Gervin, Rick Barry, Dan Issel, and David Thompson. The league also attracted a younger audience to games and on television to watch the league’s higher scoring and entertaining contests.
In 1976, four ABA teams (Denver, San Antonio, Indianapolis and the Virginia Squires-turned New York/New Jersey Nets) agreed to join the NBA. Salt Lake City was able to lure the NBA’s Jazz away from New Orleans to Utah a few years later in 1979.
Some basketball fans laughed at the ABA’s basketball. Many traditionalists made fun of the ABA’s 3-point line.
Years later, it was the NBA which added four key ABA franchises and the league’s 3-point shot.
Yes, the ABA helped to shape today’s NBA.
Likewise, PGA Tour golfers have benefited from the presence of LIV Golf
LIV Golf started poaching golfers away from the PGA Tour in 2022.
Almost immediately, the PGA Tour began raising its tournament purses to keep other remaining golf stars from contemplating their own exit to LIV.
LIV Golf’s limited its fields to 54 (or so) golfers with “no-cut” events. That insured every player would receive a minimum paycheck for their weekly efforts.
By contrast, most PGA Tour events begin with a field of 144 to 156 golfers. Half of the field is cut after the opening 36 holes. Those sent home early leave without earning a dime for their troubles that week.
Taking its cue from LIV golf’s star-laden but smaller tournament fields, the PGA Tour began creating several “no cut” tournaments a few years ago featuring only the highest ranked 70 golfers. That type of event may not have occurred without LIV Golf’s competitive presence.
Some media critics have laughed at LIV Golf’s 4-man team competitions within each tournament.
Perhaps the media should take note that the TGL (Tomorrow’s Golf League) recently concluded its second year of indoor golf competitions. This popular weekly made-for-television golf series features four-man teams comprised of top PGA stars!
Let’s see. Higher purses, smaller “no cut” fields, and team competitions.
None of those were on the scene for PGA players prior to LIV Golf’s entry in 2022.
Truth – LIV Golf has been a flop in the US
Competing in the United States against the established PGA Tour has been tougher than expected for LIV Golf. Few top US golf courses have been willing to commit to months of course preparation and the financial obligations required to host a top-level men’s golf tournament.
Several LIV Golf events in America have come and gone since 2022. Cities like Houston, Dallas, Miami, Tulsa, and Chicago have hosted a LIV Golf tournament in previous years but not in 2026.
This year’s remaining LIV Golf schedule brings the tour to several US markets. LIV plays in northern Virginia/DC metro (May 7-10), New Orleans (June 25-28), New Jersey/NYC metro (August 6-9), and Indianapolis (August 20-23). The LIV team competition season finale is in Detroit (August 27-30).
Louisiana Governor Jeff Landry and his economic development team have invested $5 million of state taxpayer dollars to pay LIV Golf to play its June 25-28 event at the newly renovated Bayou Oaks at City Park (formerly City Park South). An additional $2 million is being spent right now to prepare this venerable public golf course for the upcoming LIV Golf tournament.
Pinocchio would chuckle knowing that the Pelican State officials claim that the LIV Golf New Orleans event is going to inject $40 million into the local economy during late June.
As a former resident of the New Orleans area, locals know why major hotels are readily available and cheaper during the summertime. It is exceptionally hot and steamy in the Crescent City by late June. The conditions may be miserable for both golf fans and the players.
Regardless, the State of Louisiana is now holding its collective breath that LIV Golf won’t shut down operations prior to playing its inaugural New Orleans tournament in two months.
Around the world, LIV Golf has been more successful
Sold-out LIV Golf tournaments in Australia and South Africa this spring brought LIV’s group of top golf stars to golf-starved countries. Fans openly welcomed the LIV Golf stars and seemed to enjoy the league’s party-like atmosphere.
LIV Golf’s 2026 schedule has taken the golfers to Saudi Arabia (of course), Hong Kong, Singapore, and, this week, Mexico. Upcoming overseas events are scheduled for South Korea (May 28-31), Spain (June 4-7), and the United Kingdom (July 23-26).
The costs of taking the LIV Golf’s traveling show via jet to tournaments around the globe is staggering. PGA Tour events in the US are usually scheduled within a one-day driving distance. That reduces transportation costs for the television broadcast trucks, crews and players.
The clock is ticking for LIV Golf
Let’s give LIV Golf a mulligan for its first two years of operation. Since then, the losses have continued to be unsustainable. By any reasonable measure, LIV Golf should cut its losses and end operations by the end of the 2026 season in late August.
Perhaps the Saudi Public Investment Fund might forge a partnership with the DP World Tour to bring men’s golf to worldwide locations where LIV Golf has performed well.
The top names in LIV Golf have been paid multi-million dollar signing bonuses. They’ll be fine. The remaining talented golfers at LIV Golf will find another home to play professionally soon.
Just like basketball’s ABA did for the stalwart NBA, LIV Golf has made a lasting impact upon professional golf and, especially, the PGA Tour.
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