LIV Golf’s most recent tournament concluded in Mexico, with Jon Rahm securing the victory.
The decision by Saudi Arabia’s sovereign wealth fund to cease funding LIV Golf at the end of the current season has cast considerable doubt on the breakaway series’ future.
This development has also raised questions regarding the nation’s broader portfolio of sporting investments.
Over the past decade, the kingdom has invested tens of billions of pounds in its ambition to establish itself as a global sports hub, hosting a range of major events, including prominent boxing matches, Formula 1 races, as well as tennis and horse racing events. Notably, the kingdom is slated to host the men’s Fifa World Cup in 2034.
Therefore, the Public Investment Fund’s (PIF) withdrawal from LIV Golf prompts the question: what are the implications for the remainder of their investments?
BBC Sport offers an in-depth analysis.
Saudi Arabia to stop funding LIV Golf next season
What now for Rahm, DeChambeau and LIV’s biggest names?
“PIF remains committed to deploying capital internationally in line with its investment strategy, including its substantial current and future investments in various sports as a priority sector.”
This statement concluded the PIF’s announcement on Thursday, confirming the cessation of LIV Golf funding, ending weeks of intense speculation.
The intended message was evident: despite withdrawing from a tour it had previously championed as the future of golf, Saudi Arabia remains dedicated to the world of sports.
Until recently, such reassurance would have been deemed unnecessary.
Its extensive spending has included attracting prominent global athletes, such as Cristiano Ronaldo, to its revamped domestic football league, and acquiring a majority stake in Premier League club Newcastle United.
A comprehensive array of sports sponsorships has solidified its growing and disruptive influence over international sport, and a future Olympic bid appeared a mere formality.
The country asserted that these initiatives were intended to facilitate modernization and diversify its economy by promoting tourism, aligning with the Crown Prince’s Vision 2030 strategy, while also inspiring greater physical activity among its population.
Critics of its human rights record have accused it of ‘sportswashing’ its reputation. The country’s international standing was significantly damaged by the 2018 killing of Jamal Khashoggi, a US-based Saudi journalist who was a vocal critic of the government. It has also faced scrutiny over its use of the death penalty.
Regardless of the motivation, has Saudi Arabia’s engagement with sports begun to wane?
In January, BBC Sport learned that towards the end of the previous year, there was “a shift” in the kingdom’s approach to certain investments, with “everything in the PIF world under serious review”.
This change in strategy – emphasizing more sustainable investments with a return – followed a substantial budget deficit of $73bn last year, attributed to increased spending and reduced oil revenues.
Notably, the 2029 Asian Winter Games in Saudi Arabia were suddenly postponed indefinitely. Subsequently, it was revealed that the season-ending WTA Finals in women’s tennis would not return to Saudi Arabia after a three-year hosting agreement was not renewed.
The perception that the era of lavish spending was drawing to a close appeared to be further reinforced by the conflict in the Middle East.
The US-Israeli conflict with Iran has disrupted Saudi Arabia’s oil exports and is anticipated to lead to increased defense spending.
Last month, PIF affirmed a renewed focus on “sustained value creation…and maximizing long-term returns,” with a statement, external omitting any mention of sport, reinforcing the notion that its interest was diminishing.
Shortly thereafter, PIF announced the sale of Saudi Pro League club Al-Hilal. The Saudi Arabia Snooker Masters was cancelled, just two years into a 10-year agreement, and the country reportedly abandoned plans to bid for the 2035 rugby union World Cup.
However, the most significant casualty was LIV Golf, with PIF stating: “The substantial investment required…is no longer consistent with the current phase of PIF’s investment strategy. This decision has been made in light of PIF’s investment priorities and current macro dynamics.”
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Funding to be pulled from LIV Golf
In this context, it is not surprising that LIV, which has accumulated billions of pounds in losses since its inception in 2022, no longer aligns with PIF’s revised investment strategy, especially given the substantial resources required for preparations for the World Cup in just eight years.
“With the 2034 World Cup approaching, Saudi Arabia faces enormous infrastructure and delivery costs,” says Dr Johan Rewilak, an expert in sport management at Loughborough University.
“It is plausible that the government is reallocating capital and reassessing its wider sports portfolio. Geopolitical tensions and rising construction costs may also be accelerating these decisions, shifting spending priorities toward security and essential infrastructure rather than prestige sports assets.”
Certain sports appear to be in a more favorable position than others, particularly those with widespread appeal among Saudi Arabia’s youthful population.
Last year, Saudi boxing chief Turki Alalshikh insisted that reports of a slowdown in spending on the sport were “100% not true.” In July, Riyadh will host Anthony Joshua’s heavyweight fight against Kristian Prenga, as well as the Esports World Cup.
In cricket, the country is reportedly considering plans for a global T20 cricket competition, although a women’s tournament scheduled for later this year has been postponed due to the conflict in Iran. Next year, Saudi Arabia is scheduled to host the AFC Asian Cup for the first time.
A new, state-of-the-art Formula 1 circuit is also under construction near Riyadh.
According to sources familiar with PIF, the fund will now prioritize sports that already have a fan base in the country (such as combat sports) and where Saudis have a chance of excelling, with increased investment in talent development. “People think the PIF has a limitless supply of money, but it’s a misconception,” said one source. “It is an investment fund designed to maximize the quality of life for people in Saudi, and now the need for more selective spending has been accelerated because of the Middle East conflict.”
The BBC has also learned that PIF’s long-term commitment to Newcastle United remains unchanged, with a major capital investment set to be confirmed in the coming days.
This will undoubtedly provide reassurance to many fans increasingly concerned about the future support from their owners.
However, the fate of LIV Golf serves as a cautionary tale for all those who have become reliant on Saudi’s sporting spending spree.
They now understand that nothing is guaranteed.