{"id":611523,"date":"2026-04-16T21:17:08","date_gmt":"2026-04-16T21:17:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/611523\/"},"modified":"2026-04-16T21:17:08","modified_gmt":"2026-04-16T21:17:08","slug":"liv-and-let-die-golf-rebels-count-cost-of-saudi-cutbacks-and-other-sports-fear-worst-liv-golf-series","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/611523\/","title":{"rendered":"LIV and let die: golf rebels count cost of Saudi cutbacks and other sports fear worst | LIV Golf Series"},"content":{"rendered":"

The reverberations of an unscheduled meeting of LIV Golf<\/a> executives in New York this week have been felt way beyond their swanky offices in Hudson Yards, on the west side of Manhattan.<\/p>\n

A slowdown in Saudi Arabia\u2019s lavish spending on sport, which is conservatively estimated to have cost the kingdom more than $10bn in the past five years, had been expected, but its Public Investment Fund\u2019s withdrawal of financial support for the rebel tour \u2013 which was first mooted to LIV execs on Monday \u2013 has caused shockwaves throughout the wider industry.<\/p>\n

Significantly, the possibility of PIF\u2019s withdrawal was not even addressed in an email sent by the LIV chief executive, Scott O\u2019Neil, to his staff on Wednesday evening, which has left many of them more fearful for their jobs. Such concerns are not limited to golf, with other sports administrators fearful that similar cuts in Saudi\u2019s budget could be coming their way.<\/p>\n

While LIV was the primary vehicle through which Saudi launched their ambitious attempt to become a leading global sports destination and promoter five years ago, with more than $5bn invested on the rebel tour, the arch disruptors were by no means the sole beneficiaries.<\/p>\n

Large elements of the football, boxing, motorsport, tennis, Esports and mixed martial arts financial ecosystems have become reliant on PIF funding, with a further $5bn spent on player transfer fees, infrastructure, TV rights and hosting fees in these sports. \u201cWe all went running to Saudi for a quick payday and are now wondering what the future holds,\u201d a sports executive outside golf told the Guardian.<\/p>\n

Although widely criticised as sportswashing, Saudi always insisted that its investment in sport was part of the country\u2019s wider Vision 2030, a strategic plan to diversify its economy from oil to other industries including leisure and tourism for domestic benefit.<\/p>\n

A source who has worked with both the Saudi Ministry of Sport and the Saudi Pro League says the mooted LIV cull should be seen in this context, with PIF now focused on investments with the potential to deliver a financial return and bring long-term economic and public health benefits.<\/p>\n

\u201cThe investment strategy now is far more about domestic benefits and building real businesses,\u201d they said. \u201cLIV stands out as being from a different era, so it\u2019s no surprise it is vulnerable.\u201d<\/p>\n

It is no coincidence that reports of LIV\u2019s demise emerged on the same day that PIF published its financial strategy for 2026-2030, which emphasised the importance of \u201cvalue realisation through performance, innovation and private sector engagement\u201d. While sport was not listed as one of PIF\u2019s six investment pillars, sources disclosed that it will be included as part of the tourism, travel and entertainment portfolio.<\/p>\n

Another source with a government contract said the change in policy is best seen as an attempt to privatise Saudi\u2019s sports industry, which explains LIV\u2019s vulnerability. While individual teams could be auctioned off it would be a hard sell; O\u2019Neil conceded earlier this year that even after reducing the prize fund this season it could be another 10 years before the tour is profitable.<\/p>\n

LIV attracted some big names but is appears the rebel tour\u2019s days are numbered. Photograph: Kieran Cleeves\/PA<\/p>\n

In contrast PIF on Thursday confirmed the sale of a 70% stake in one of its Saudi Pro League clubs, Al-Hilal, to a private company owned by Prince Al Waleed bin Talal Al Saud, demonstrating why football is seen as a better long-term play.<\/p>\n

While PIF still owns majority stakes in three SPL clubs \u2013 Al-Ittihad, Al-Ahli and Al-Nassr \u2013 they will also be sold off in the coming years. Cristiano Ronaldo already owns a small stake in Al-Nassr and the club are hopeful the Portuguese superstar could increase his investment after he eventually retires.<\/p>\n

There will also be attempts to secure more private investment in the 11 new stadiums that are being built for the 2034 World Cup. While some budgets have been cut and build times increased, as reported by the Guardian in December<\/a>, the majority of PIF\u2019s World Cup funding has been ringfenced.<\/p>\n

Fifa may soon have some concerns about Saudi Arabia\u2019s drive for sustainability, however, as spending in other areas will continue to be cut.<\/p>\n

While the PIF subsidiary, Surj Sports Investments, is understood to have delivered its $1bn in Dazn that in effect paid for the streaming company\u2019s purchase of Club World Cup TV rights from Fifa last year, one source with knowledge of the deal described it as a one-off transaction that would not be repeated.<\/p>\n

Given Dazn has recorded combined losses of more than $2.5bn in 2023 and 2024 it is hard to see SURJ making a profit on its investment any time soon, which could leave Fifa facing a challenging market when it seeks to sell the next batch of Club World Cup rights before the 2029 tournament.<\/p>\n

PIF\u2019s push for privatisation also raises questions for Newcastle United. The club has benefited from around \u00a3500m of investment since PIF paid \u00a3305m for it four years ago. Newcastle sources said on Thursday that they have received assurances that the club is a key part of PIF\u2019s strategic portfolio but what that means in practice remains to be seen.<\/p>\n

Phil Mickelson was one of golf\u2019s big names attracted to the LIV tour. Photograph: Steven Paston\/PA<\/p>\n

While PIF\u2019s ability to spend on Newcastle is severely limited by the Premier League and Uefa\u2019s financial rules, it seems significant that its decision on building a new \u00a31bn stadium continues to be delayed.<\/p>\n

Beyond football, sources in Saudi have highlighted Esports as another key investment area that will be protected because of its popularity among the country\u2019s youthful population, 69% of whom are under the age of 35. The Esports World Cup has been held in Riyadh since 2024 and is due to return to the capital in August, with the prize fund having increased to $75m.<\/p>\n

Saudi will also continue to invest heavily in boxing and MMA due to the influence of Turki Alalshikh, a close adviser to Crown Prince Mohammed bin Salman and chair of the General Entertainment Authority.<\/p>\n

Under Alalshikh\u2019s guidance the GEA has launched a joint venture with The UFC president Dana White\u2019s TKO Group to set up a new boxing league, with the first bouts likely in Saudi this year.<\/p>\n

While PIF will continue to look at selling off assets, sports that are not delivering will be discontinued. A three-year deal to stage the finals of the WTA Tour in Riyadh that concludes in November will not be renewed, while the scheduled 2029 Asian Winter Games has already been cancelled.<\/p>\n

PIF also remains committed to investing in motorsport, with a new purpose-built Formula One circuit near Riyadh due to open next year, although this year\u2019s Grand Prix in Jeddah was cancelled<\/a> because of the conflict in Iran, along with the race in Bahrain. It is unclear whether either will be rescheduled.<\/p>\n

Saudi sources have attempted to blame the planned LIV withdrawal on uncertainty caused by the war, although there are suspicions that this may be a strategic play for insurance reasons, if players do not receive what they are entitled to under their contracts.<\/p>\n

Paradoxically, the LIV news has emerged at a time when elite sport is due to return to Saudi after a month-long shutdown caused by the war, with the Asian Champions League quarter-finals taking place in Jeddah this weekend.<\/p>\n

The Saudi Pro League has continued throughout, however, just the latest example of the truism that there is one rule for football and another for the other sports that trail in its wake.<\/p>\n","protected":false},"excerpt":{"rendered":"The reverberations of an unscheduled meeting of LIV Golf executives in New York this week have been felt…\n","protected":false},"author":2,"featured_media":611524,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[566],"tags":[64,63,755,85],"class_list":{"0":"post-611523","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-golf","8":"tag-au","9":"tag-australia","10":"tag-golf","11":"tag-sports"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/611523","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=611523"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/611523\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/611524"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=611523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=611523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=611523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}