The path forward for LIV Golf is looking shaky at best after news that Saudi Arabia’s Public Investment Fund is pulling financing for the rogue golf league following this season. But it appears LIV has something resembling “a concept of a plan” to save the operation.
According to a report by Dan Primack in Axios, LIV Golf is seeking to raise $250 million from new investors in order to save the league. The Saudi-funded league, which has lost many billions of dollars since its launch in 2022, claims it can reach profitability in just 20 months should it secure the full $250 million. If LIV isn’t able to secure the full $250 million, and instead raises somewhere in the neighborhood of $150 million, the league will be reliant on “rising team values and a new media rights deal” in order to reach profitability, Primack reports.
In the United States, LIV Golf is currently in Year 2 of a “multiyear” media rights agreement with Fox Sports. The exact term of that deal is unclear, though it very well could end following the current season. Any media rights fee that Fox is paying LIV has been described as “nominal,” which could reasonably be considered as market value given LIV’s paltry viewership. As such, LIV Golf will likely have to rely on new media rights deals in other markets where it is more popular if it is counting on rights fees being a major part of its business going forward.
How LIV plans to take a possible $250 million investment and create a profitable enterprise is unclear. The tour is predicated off of humongous purses and guaranteed contracts for players, some of which are valued in the mid-nine-figures. If the financial incentive for the players begins to wane, the tour might struggle to retain top talent.
As far as who would want to invest in a sports league that is seemingly on the brink of collapse, no individuals or entities have been reported publicly. However, there could certainly be investors out there looking to buy low on a distressed asset in hopes of a turnaround.
Even still, LIV Golf faces quite a steep uphill battle before it becomes a viable business.
About Drew Lerner
Drew Lerner is a staff writer for Awful Announcing and an aspiring cable subscriber. He previously covered sports media for Sports Media Watch. Future beat writer for the Oasis reunion tour.