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LIV Golf CEO Scott O'Neil announced today that the organization has secured a new funding source after the Saudi government's Public Investment Fund (PIF) decided to pull its financial backing earlier this year. The identity of the new investor remains undisclosed, but O'Neil emphasized the importance of this agreement to sustain the league's operations.
The PIF had previously supported LIV Golf since its inception in 2021, investing between $5 billion and $8 billion. However, due to strategic shifts and financial constraints, the PIF decided to withdraw its support, leaving LIV Golf in search of new investors. O'Neil had been actively seeking between $250 million and $300 million to maintain the league's viability. According to Golf Digest, the league projected profitability within 20 months, with a secondary option of $150 million contingent on team sales and a new media rights deal.
Despite the funding challenges, O'Neil expressed confidence in the league's future. He stated that the response from potential investors had been positive, with several meetings already conducted and more planned. The CEO described the current situation as an opportunity to create tremendous value and emphasized the need for discipline and creativity in the league's operations.
The withdrawal of PIF funding reflects a broader retrenchment by Saudi Arabia, which is refocusing on domestic programs due to budget shortfalls and geopolitical tensions. The kingdom's economic challenges have been exacerbated by the closure of the Strait of Hormuz, significantly impacting oil exports.
As LIV Golf navigates these changes, it faces an uncertain future. Some players' agents have reportedly reached out to the PGA Tour about potential returns, and the league has already postponed one event this season. Nevertheless, O'Neil remains optimistic about the league's prospects, citing ongoing efforts to secure financial stability and continue the season as planned.