Saudi Arabia Soverign Wealth Fund To Withdraw Support From LIV Golf After $5 Billion Investment

Saudi Arabia’s sovereign wealth fund is planning to withdraw financial support from LIV Golf. 

The wealth fund announced its $1 trillion five-year spending plan. The fund’s governor said that his focus was on increasing efficiency in the fund’s investments.

Saudi Arabia already has many long-term investments. They will be hosting the World Expo in 2030 and the World Cup in 2034.

No official source has given a reason for the LIV Golf funding specifically being cut. However, the head of the fund, Yasir Al-Rumayyan, gave reasons for the general cuts.

“There needed to be a reconsideration of the timing of some investments,” Al-Rumayyan said, speaking during a news conference in Riyadh, the kingdom’s capital.

The fund has made major investments in Uber, SoftBank and the English Premier League in recent years. 

LIV Golf has been one of their least successful ventures. It’s estimated that the league has cost Saudi Arabia around $5 billion since its initial $2 billion investment.

This $2 billion investment turned a lot of heads. The PGA Tour is estimated to make $400 million in profits. Even if Saudi Arabia thought their league could overtake the PGA, there was no world where they’d make $2 billion or more. 

LIV Golf did put this massive investment to use. They signed notable golfers like Jon Rahm, Bryson DeChambeau, Brook Koepka, Dustin Johnson, Cameron Smith and Phil Mickelson. 

Mickelson was the most notable name to join LIV. He won 45 PGA Tour events and six championships. In 2021, he became the oldest player to win a PGA Championship at age 50. 

If the league disbanded, the golfers would need to return to the PGA Tour to continue golfing. Golfers may face suspensions for leaving the league or will need to requalify on the Korn Ferry Tour. 

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Article by Matthew Mendives