Portugal Colonial - Saudi wealth fund to cut LIV golf funding after 2026 season

The announcement came hours after LIV Golf, founded in 2021 as a rival to the PGA Tour, said it was seeking to secure "long-term financial partners".

It has reportedly cost PIF over $5 billion so far to operate the series after signing many of the world's top players including Major winners Bryson DeChambeau and Spaniard Jon Rahm.

Saudi's powerful wealth fund, however, said funding for the project would be axed as PIF looked to pare back a string of projects in the kingdom with the war in the Middle East raising fresh speculation about investment priorities moving forward.

"PIF has made the decision to fund LIV Golf only for the remainder of the 2026 season," a spokesperson for the fund said in a statement provided to AFP.

"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 spokesman went on to say the decision had been made in light of "PIF's investment priorities and current macro dynamics".

LIV said earlier Thursday it was searching for new financial backers.

The golf league said it was looking to secure "long-term financial partners to support its transition from a foundational launch phase to a diversified, multi-partner investment model."

There was also no mention in the LIV statement of PIF governor Yasir Al-Rumayyan, who co-founded the dissident league.

The statement simply mentioned two new board members, Gene Davis and Jon Zinman, had joined.

LIV Golf described the duo as "seasoned experts with proven track records of navigating complex situations and unlocking value for global organizations, to guide the league through its next phase."

- Uncertain future -

The PIF statement confirmed rumours, which had circulated for several weeks, that the breakaway tour was on the verge of collapse due to the possible withdrawal of the Saudi financing.

LIV's deep-pocketed backers in Riyadh were rumored to have cooled on the extravagantly expensive project.

LIV Golf CEO Scott O'Neil vowed prior to the announcement to continue the season "full throttle," though he conceded the league would "probably" have to raise money going forward.

A collapse of LIV Golf could jeopardise the careers and earnings of its star players.

The likes of DeChambeau defected from the PGA Tour in acrimonious circumstances, and may face severe penalties if they try to return.

"There were rules, and they were broken," PGA Tour chief executive Brian Rolapp told the Journal this week. "With rules comes accountability."

Brooks Koepka became the first LIV player to return to the PGA fold when the five-time major winner jumped ship last December.

The 35-year-old American's return was made possible as the PGA created a Returning Member Program, described as offering "a route back to elite performers who no longer have contractual limitations preventing them from complying with PGA Tour rules and regulations".

LIV Golf postponed its planned June tournament in New Orleans on Tuesday, with officials saying they hope to reschedule an event for later this year.

LIV's next tournament is set for May 7-10 at Trump National in suburban Washington.

Its final scheduled tournament this season is set to take place in Indianapolis from August 20-23.

Earlier this month, PIF announced its 2026-2030 strategy would reorganise the fund's investments.

The announcement came as the kingdom and wider Middle East has been upended by the ongoing war in the region.

The Gulf was hit hard by Iranian barrages on infrastructure, including airports, energy installations and ports following the US and Israeli attack on Iran in late February.

But even before the war, Saudi Arabia's economic reforms were coming under pressure, with persistently low oil prices in recent years shrinking government revenues and triggering deficit spending.

F.Santana--PC