LIV Golf secures new lead investor as Saudi PIF withdraws over $5bn in backing

New investor steps in as Saudi funding ends

LIV Golf has signed a term sheet with an unnamed lead investor, with the transaction expected to close in September, CEO Scott O'Neil announced on August 5. The deal, covering the tour through 2030, comes after Saudi Arabia's Public Investment Fund (PIF) said on April 30 it would end its multibillion-dollar backing after the 2026 season. PIF has invested more than $5 billion in LIV Golf since the league launched in 2022.

The lead investor is the credit division of BC Partners, a London-based private equity company, according to people familiar with the matter cited by the Financial Times. Bloomberg News first reported BC Partners as the lead investor. O'Neil declined to name the investor publicly but described them as being "of weight." LIV has been seeking investments between $250 million and $350 million, according to Sportico, while N-tv reported the deal could be worth up to $300 million.

Restructured format and player equity

Under the plan for "LIV 2.0," the schedule will be reduced from 14 events per year to 10, split evenly between international venues and the United States. Prize funds per tournament will drop from $30 million to $10 million. Players will become majority equity holders in the league, which LIV called "a first for a major global sports league" in its statement. O'Neil said more than a dozen additional parties have expressed interest in serving as minority investors.

Current format14

Planned (2027)10

Current format

14

Planned (2027)

10

Data from the article text

Current format30

Planned (2027)10

Current format

30 $M

Planned (2027)

10 $M

Data from the article text

Player uncertainty and defections

Several leading players, including Jon Rahm, are owed guaranteed payments worth potentially hundreds of millions of dollars under contracts extending beyond the PIF's funding cutoff. The PIF is considering paying off those contracts at a discount to settle potential liability and avoid negative publicity, according to people close to the negotiations cited by the Financial Times. New deals with the BC Partners-backed circuit would include both cash and equity.

Brooks Koepka has returned to the PGA Tour, and Patrick Reed did not renew his LIV contract. Lucas Herbert, who won two LIV tournaments this year, said on Tuesday that his management has contacted PGA Tour officials.

“Should LIV disappear and one had no place left to play, as a professional you ultimately need a tour. That's why we're carefully examining all possibilities.”

O'Neil met with team captains on Tuesday, after which Bryson DeChambeau led an internal meeting with players whose contents were not disclosed. Asked about the futures of DeChambeau and Rahm, O'Neil expressed his desire to retain them.

“I would certainly love them to come along for the ride and journey because they carry maybe more weight than anybody in the game.”

Bankruptcy option and cancelled events

A settlement may take the form of a pre-packaged bankruptcy, where a court process could quickly cleanse legacy liabilities and allow new investment to enter free of entanglements from the previous era, the Financial Times reported. At least one report said the league was considering filing for Chapter 11 bankruptcy protection.

LIV cancelled its New Orleans event in June, and the season-ending team championship scheduled for Michigan this month has reportedly been nixed. O'Neil is working on a restart under the name "LIV Golf 2.0."

Tournament continues at Bedminster

This weekend, LIV returns to action with its New York tournament at Trump National Golf Club Bedminster, New Jersey, a course owned by US President Donald Trump. The event begins on Thursday and will feature players including Bryson DeChambeau, Jon Rahm, and Tyrrell Hatton. LIV Golf Adelaide set a record this year as Australia's highest-ever attended golf tournament with more than 115,000 spectators.