April 30 (Reuters) - Saudi Arabia's Public Investment Fund, which has spent more than $5 billion on LIV Golf since it launched in 2022, said on Thursday that investing in the league no longer fits with its investment strategy.
The decision to cut funding at the close of the 2026 season leaves the breakaway circuit scrambling for new backers and raises questions about the future of its big-name players on lucrative contracts.
LIV turned the golf world upside down when, armed with PIF's billions, it enticed some of the game's biggest names to defect from the long-established PGA Tour.
Major winners Bryson DeChambeau, Jon Rahm, Phil Mickelson, Dustin Johnson, Brooks Koepka and Patrick Reed were all recruited to play team golf around the world for millions of dollars in prize money.
Sources at LIV told Reuters on Wednesday that the PIF would cut funding for the breakaway circuit at the close of the league's 2026 season with Saudi Arabia's $925 billion sovereign wealth fund confirming the decision in a statement.
"The substantial investment required by LIV Golf over a longer term is no longer consistent with the current phase of PIF’s investment strategy," the PIF said in its statement on Thursday. "This decision has been made in light of PIF’s investment priorities and current macro dynamics.
"The LIV Golf Board has created a committee of independent directors to evaluate strategic alternatives for its future beyond PIF’s funding horizon."
The PIF added that it remains committed to deploying capital internationally in line with its investment strategy, "including current and future investments in various sports as a priority sector."
PIF earlier this month said it would focus investments on the country's economy across six key themes under a new five-year strategy, deploying more money domestically in its latest effort to diversify its reliance on oil.
NEW DIRECTION
LIV Golf moved quickly to establish a new direction, announcing on Thursday a new board and the search for new long-term financial partners.
In a separate statement without any mention of PIF, LIV announced a "transitionfrom a foundational launch phase to a diversified, multi-partner investment model" and a new independent board led by seasoned business consultants GeneDavisand Jon Zinman.
"LIV Golf has built something truly differentiated – a globalleaguewith passionate fans, world-class talent, and demonstrated commercial momentum," Davis, who will chair the board, said in a statement.
"The executive leadership team,along with Jon and I,see a clear opportunityto help the leagueformalize its structure,attractand secure long-termcapital,and position the business forgrowth."
The league will now need to convince its players of LIV's long-term viability without Saudi backing. Some players have already decided to return to the PGA Tour.
Five-times major winner Koepka rejoined as part of a limited Returning Member Program this year and former Masters champion Reed plans to reinstate his membership for the 2027 season.
LIV said the league had posted a 100% increase in revenue year-on-year this season and was convinced the team golf model would be highly attractive to investors.
"We are now leveraging this momentum to engage in constructive, forward-looking discussions with prospective global investors and partners who share our vision for an inclusive and modernized game," the league said.
"For our fans, players and partners, our commitment to world-class golf remains unchanged as this process unfolds."
(Reporting by Nick Mulvenney in Sydney and Frank Pingue in Toronto; Additional reporting by Anousha Sakoui ; Editing by Peter Rutherford and Toby Davis)
