Saudi-backed LIV Golf has invested substantial amounts to attract top PGA Tour stars, but these expenditures contribute only a part of the organization’s financial landscape. An industry analyst highlighted this week that “the losses being incurred by LIV are piling up at a staggering rate.” A report from GolfWeek referenced findings from Money In Sport, which analyzed the 2023 financial filings of LIV Golf’s UK operations, showing that tournament revenue surged from $4.9 million in its inaugural year in 2022 to $37.1 million.
However, launching a new tour involves significant costs beyond the hefty player contracts that attracted stars like Bryson DeChambeau and Dustin Johnson. Notably, legal fees for LIV Golf UK reached $15.7 million, nearly matching the PGA Tour’s legal costs of $18.7 million. According to Money in Sport, “It’s reasonable to conclude that LIV’s total legal fees are significantly higher than the fees incurred by the PGA Tour.”
The operating losses for LIV Golf UK escalated from $244 million to $394 million in 2023, prompting Money In Sport to note that financial losses are “piling up at a staggering rate, necessitating regular injections of new capital by the Saudi PIF.” The Saudi Public Investment Fund has been actively supporting LIV Golf and could potentially invest up to $5 billion by the end of this year, especially as significant expenses may arise from contracts with top golfers approaching expiration.
GolfWeek speculated that these financial challenges might encourage LIV Golf to intensify merger talks with the PGA Tour.
