Embattled breakaway golf circuit LIV Golf is set to implement unexpected structural adjustments as it navigates swirling speculation that its primary backer, Saudi Arabia’s sovereign wealth fund, is preparing to end its massive financial support, chief executive Scott O’Neil confirmed Thursday.
Recent reports from multiple international media outlets have claimed that the Saudi fund, which has poured billions into luring top-tier golf talent away from the established PGA Tour and DP World Tour since LIV launched in 2022, will imminently halt its funding commitments for the divisive league. Despite the uncertainty, LIV has insisted its ongoing 2024 season will proceed without interruption. This week’s tournament in Mexico City kicked off as scheduled Thursday, though broadcast coverage was disrupted for an extended period by local power outages that caused a blackout.
In an on-air interview during the Mexico City event, O’Neil addressed the growing speculation head-on. “I talked about some structural changes. They’re coming,” he said, referencing a plan he had already presented to roughly 50 stakeholders during last weekend’s Masters tournament at Augusta. “We have one, and it is… It might surprise some people.”
Since its debut in 2022, the Saudi-backed league has upended the global golf landscape, pitting the new circuit against traditional golf governing bodies. Built around a format of shorter, faster events with team-based competition and a geographically diverse tournament schedule, LIV has attracted some of the sport’s biggest names, including major champions Bryson DeChambeau and Jon Rahm, while drawing large crowds to stops in emerging markets such as Australia and South Africa. However, the circuit has struggled to secure the lucrative multi-year media rights deals that are a core revenue stream for established major sports leagues.
Industry estimates peg the Saudi sovereign wealth fund’s total spending on LIV Golf at roughly $5 billion to date. During a recent five-year strategy presentation, the fund signaled a shift to prioritize “increasing the efficiency of investments,” fueling rumors of an imminent pullback from the golf project.
O’Neil acknowledged Thursday that LIV will “probably” need to secure new external capital to sustain operations, pointing to the league’s long-stated strategy of selling ownership stakes in its 12 existing team franchises. The circuit’s long-term business model is modeled after motorsport’s Formula 1, which relies on independently owned and operated team franchises. “I had two calls this morning” about stake sales, O’Neil confirmed. Prior to this week’s funding rumors, LIV had already been exploring the sale of minority or even controlling stakes in two teams to outside wealthy investors or corporations, and in January Bloomberg reported the league was targeting valuations as high as $300 million per team. No public valuation of the franchises has been released to date.
O’Neil also pushed back against recent sensationalized media coverage of the league’s turmoil, specifically calling out a report from Britain’s *Telegraph* that claimed LIV executives had been called to an emergency emergency meeting in New York. “It’s a lot of reaching and grabbing for headlines and clickbait and stories,” he said. While he rejected claims of an imminent collapse, he did confirm that operational shifts are on the horizon. “Will there be a change in how we operate? Of course,” he added.