Saudi Arabia’s wealthy investors are ending their financial support for LIV Golf, marking another major sports venture the kingdom has abandoned in recent months.
In recent weeks, Saudi officials have canceled a Winter Olympics-style sporting event and sold off one of their premier soccer clubs, signaling a major change in their multibillion-dollar investment approach.
Crown Prince Mohammed bin Salman’s Saudi Public Investment Fund recently released a new strategic plan for 2026-30, emphasizing domestic investments while “maximizing financial returns, strengthening investment efficiency and increasing private sector participation.”
This new direction supports the crown prince’s “Vision 2030” initiative, which aims to transform Saudi Arabia’s infrastructure and develop tourism as a key component of their oil-dependent economy.
This marks a departure from years of massive spending on international sports ventures. Soccer has been central to their efforts — the nation will host the 2034 World Cup, while PIF controls a majority interest in Premier League’s Newcastle and supports the Saudi Pro League. The fund has also invested heavily in professional tennis for both men and women, Formula 1, boxing and other sports.
While LIV Golf may not be their costliest investment, it has generated the most attention; reports indicate the fund invested approximately $5 billion in LIV without seeing any financial returns.
“For the past two years, we’ve seen the beginning of the scaling back of some of the mega projects that were announced in 2021, 2022,” said Kristian Ulrichsen, a Middle East expert at Rice University’s Baker Institute for Public Policy. “That’s exactly when LIV Golf began, as well.”
The PIF confirmed Thursday it would end LIV Golf funding after 2026, concluding weeks of rumors and reports about the Saudis withdrawing support. Yasir Al-Rumayyan, the PIF governor who spearheaded LIV Golf’s creation, no longer appears as chairman of LIV Golf following reports of his resignation.
Players and staff learned two weeks ago that the PIF would only continue supporting LIV Golf through this year’s end. LIV has responded by establishing a new board and developing plans for an investment model aimed at securing long-term partnerships.
The PIF’s substantial funding was crucial for LIV’s ability to attract top players from the PGA Tour. The organization spent $1 billion recruiting stars like Bryson DeChambeau, Brooks Koepka, Phil Mickelson, Cameron Smith and Jon Rahm, who became their final major acquisition in late 2023.
During a recent Wall Street Journal interview, PGA Tour CEO Brian Rolapp stated: “We’re interested in having the best players who can help our tour. Not every player can do that.”
Five-time major champion Koepka has already returned to the tour from LIV, and Masters winner Patrick Reed plans to rejoin later this year.
Approximately three months ago, Saudi Arabia reduced plans for a futuristic mega-city called The Line, part of the larger “Neom” project that was originally designed to stretch over 100 miles from the Red Sea through desert mountains.
The project included Trojena, a proposed year-round ski resort intended to host the 2029 Asian Winter Games (which were relocated to Kazakhstan). This could have served as preparation for future Olympics or the 2034 World Cup already granted to Saudi Arabia.
Recently, PIF sold 70% of Saudi Pro League team Al-Hilal to a Saudi royal-owned company, creating concerns throughout soccer about the fund’s continued commitment to Newcastle in the English Premier League, where it holds roughly 85% ownership.
“Whether due to the war or reasons related to economic feasibility, we continuously reassess our priorities,” Al-Rumayyan told state-owned Al Arabiya news following the Al-Hilal sale.
Mohammed Soliman, a senior fellow at the Washington-based Middle East Institute, told The Associated Press “Saudi Arabia is constantly reassessing its priorities, and its investment strategy will shift accordingly.”
“The PIF has always been a vehicle of national transformation first, global sports deals were part of that story, but so is pulling capital closer to home when the moment calls for it,” Soliman said.
Experts debate how much the U.S.-Iran conflict influences Saudi decision-making.
Some choices — like reducing the Neom project — occurred earlier this year when oil prices dropped to $60 per barrel, potentially creating budget shortfalls that might require using profits from Aramco, the national oil company.
The conflict has pushed oil prices above $100 but limited Saudi export capabilities as Iran and the U.S. compete for control of the Strait of Hormuz, through which roughly 25% of global oil passes.
“Ironically, the fact that the Saudis are still able to export maybe two-thirds of their oil at much higher prices over the last six weeks maybe actually means that their revenues may have gone up,” Ulrichsen said. “But this won’t be forever. The war has definitely heightened the element of uncertainty, and the closer it gets to 2030, the more they’ll want to deliver one or two key things, rather than maybe falling short on six or seven in general.”
Saudi Arabia has established significant presence in sports beyond golf and soccer.
They host a $15 million season-finale tournament for the Women’s Tennis Association, and the PIF holds naming rights for both WTA and men’s ATP tours.
Saudi Arabia has hosted the Dakar Rally and began hosting Formula 1 events in 2021. (This year’s F1 race was canceled due to the war.)
The kingdom has expressed interest in hosting Summer Olympics, potentially as early as 2036.
These investments appear modest compared to their largest sports commitment — hosting the 2034 World Cup. This project requires constructing 10 or 11 new stadiums nationwide, including one in Neom designed to float a quarter-mile above ground.
All these stadium and infrastructure investments make LIV’s $5 billion seem relatively small. However, observers note that LIV’s original vision — creating teams and selling them for profit — never materialized.
“The expense is not on the scale of what they spent on The Line or the (Asian) winter games,” Ulrichsen said. “But it’s significant, and I don’t think there’s an appetite for the prospect of losses continuing for at least another five or 10 years.”
