LIV Golf is facing a major crisis, with mass layoffs impacting most of its staff next week as the league transitions away from Saudi Arabian funding. The Public Investment Fund (PIF) has reportedly spent between $5 billion and $8 billion on LIV Golf since 2022, but has now ended its commitment, leading to significant downsizing and a search for new investors to create "LIV 2.0." This financial shift has forced the league to scale back operations, with September 1st being the final day for most employees.
The league's future now hinges on securing a new lead investor, with BC Partners, specifically its credit division head Ted Goldthorpe, having signed a term sheet. However, the financial situation is precarious, and options being considered include bankruptcy or pre-packaged insolvency to stabilize the league. While LIV Golf reported significant revenue growth from 2024 to 2025 and into 2026, the withdrawal of PIF's billions necessitates a much more financially disciplined approach to operations.
A key challenge for LIV Golf is retaining its star players, such as Jon Rahm and Bryson DeChambeau, some of whom are reportedly owed nine-figure sums. The cost of these player contracts directly conflicts with the league's need for financial viability. Prize money has already been halved at recent events, signaling a change in spending. Players have been promised equity under a new investor deal, but the exact value of this is unknown, creating uncertainty among the 57 players on the tour, as described by Graeme McDowell.
