LIV Golf seeks financial lifeline after Saudi backers withdraw funding
LIV Golf has hired restructuring experts to secure a multi-billion dollar financial lifeline after Saudi Arabia’s Public Investment Fund confirmed it will end its backing of the circuit at the close of the current season.
The controversial breakaway league is reportedly bringing in consulting firm AlixPartners to draw up a fresh business plan aimed at attracting crucial external investment.
Sources indicate the competition is also days away from retaining a leading investment bank to assist with imminent capital-raising efforts.
The withdrawal of Saudi sovereign wealth has sparked a frantic scramble to salvage the series, which features high-profile stars including Jon Rahm and Bryson DeChambeau.
Contingency plans for insolvency
Insiders suggest the engagement of restructuring specialists could also serve as a contingency move to prepare for a potential winding-down process.
This drastic outcome remains a genuine possibility if new investors cannot be identified by the end of the calendar year.
However, sources close to the 13-team league insist the primary focus is on devising a credible financial pitch for prospective partners.
A spokesperson for the organisation confirmed the move to explore new avenues for capital.
“LIV Golf has engaged experienced advisers across disciplines to identify and secure long-term strategic investment partners and guide us through our next phase.”
The cost of a breakaway circuit
The Middle Eastern backers have spent unprecedented billions attempting to establish the global tour as the pre-eminent force in the sport.
Despite writing massive cheques to lure elite talent away from the established PGA Tour, the prospect of achieving profitability has remained elusive.
Spanish two-time major champion Rahm famously defected for a reported $300m (£222m) payment, mirroring the lucrative sums handed to several other competitors.
Now in its fourth full campaign, the series faces a critical juncture as it attempts to survive without the vast wealth that initially brought it to life.
