LIV Golf faces existential crisis as Saudi Arabia halts funding beyond 2026
With Saudi Arabia withdrawing its financial backing, the survival of the breakaway circuit now hinges on securing alternative investment and retaining key talent ahead of the 2027 season.
Saudi Arabia has officially ceased its financial support for LIV Golf, casting a long shadow over the tour's viability beyond the 2026 season. The abrupt withdrawal of funds has left the new board, led by Gene Davis and Jon Zinman, in a scramble to secure replacement capital to sustain operations. This decision follows a breakdown in peace talks where the Saudi Public Investment Fund rejected a PGA Tour valuation of LIV at $500m, deeming the figure derisory before walking away from negotiations.
The uncertainty surrounding the tour's funding has immediate implications for its most high-profile athletes. Jon Rahm, who signed a reported $300m deal in 2023, remains under a one-year ban from the PGA Tour after refusing a return programme. Furthermore, his dispute with the DP World Tour regarding fines and settlement terms renders him ineligible for the Ryder Cup, complicating his standing within the broader golfing establishment.
Bryson DeChambeau faces a critical juncture as his LIV contract expires at the end of the current season. The tour's leadership now questions whether they can afford to retain the two-time US Open winner, whose signature would not come cheap, or if he might depart to pursue a career as a content creator or rejoin the PGA Tour. His decision will be a significant factor in the tour's ability to attract future investment.
In contrast to the instability facing LIV, the PGA Tour continues to compete aggressively, bolstered by a $1.5bn investment from the Strategic Sports Group. Despite this influx of capital, the tour has recently cut 4% of its workforce, comprising 56 jobs, as it shifts towards a for-profit model with players qualifying for equity. Prize money has risen to record levels, with Signature Events offering $20m purses, yet the circuit has also implemented cost-cutting measures to manage its financial structure.
Eight LIV players, including Tyrrell Hatton and Laurie Canter, hold joint membership with the DP World Tour and possess permission to play on both circuits. These athletes are expected to prioritise events on the European circuit to secure future playing privileges, while high earners such as Joaquin Niemann and Talor Gooch face limited options outside the Asian Tour's International Series. The DP World Tour has noted the developments with interest as the landscape shifts.
As the tour looks beyond 2026, the absence of Saudi billions forces a reevaluation of the business model that relied on simultaneous starts and team competitions. With television figures remaining weak and rights fees low, the new LIV setup must now prove it can attract the necessary investment to compete with the PGA Tour without the backing of the world's largest sovereign wealth fund.
