The momentum doesn’t appear to be stopping as a reported $3 billion merger expands. However, the trip now appears to be under scrutiny based on reports showing Saudi Arabia-backed regional funding.
The PIF-sponsored alliance has attracted the attention of many since its inception because of its huge funding. But now, there’s speculation they’ll make another trip, and a takeover of “less than $100 million” isn’t a worry for Yasir Al-Rumayyan and Greg Norman.
Expensive investments in various activities, including signing crazy players, have been the focus of the PIF-sponsored league since its launch in 2022.
A recent discussion in the space speculated on how LIV Golf could be “built for under $100 million by 2023.”
🚨💰⛳️ #FINANCIALS — LIV GOLF is rumored to have generated less than $100M in revenue during the 2023 season with an estimated $2-3M in TV revenue (the CW does not pay the league for broadcast rights), sources tell @GOLF_com pic.twitter.com/4KNVybOhjP
— NUCLR GOLF (@NUCLRGOLF) December 29, 2023
This alarmed PIF governors and the head of the Saudi-run coalition, as a quarter of the total was paid out in one lump sum.
Additionally, the CW Network, which airs and broadcasts the tour, “will not pay broadcast rights fees to the league,” according to sources.
As a result, TV revenue in the region will reach $2-3 million by 2023.
News like this, coupled with the number of awards Jon Rahm has received, would spell trouble for the league. However, this only adds to concerns about the early start of the merger.
While many, including Tiger Woods, are happy the work will be completed by the end of the year, the media paints a different picture.
However, sources are discussing the nature of the news, which would see the extended contract expire before the 2024 Masters, with the merger expected to be completed by the end of the year.
PGA Tour commissioners told the New York Times Dealbook Summit that they have decided to keep the December deadline “the real deal.”
Well, taking all these things into consideration will allay the concerns of PIF directors and LIV Golf CEOs.
The inaugural LIV Golf Invitational Series began on June 9, 2022, at the Centurion Club near St. Albans, Hertfordshire, England.
In 2023, the Youth Invitational will become the LIV Golf League.
LIV Golf is funded by the Public Investment Fund, the sovereign wealth fund of Saudi Arabia.
Some journalists and commentators have suggested the visit is part of an effort by the Saudi royal family, which has been accused of corruption and human rights violations, to use the games to improve its status.
The first framework for a new golf tour to compete with the PGA Tour was unveiled in 2019 with the announcement of a league called the Premier Golf League.
PGA Tour commissioner Jay Monahan responded by saying that golfers who choose to play in the new league will not participate in PGA Tour events.
The company was officially launched as LIV Golf Investments in October 2021, with former professional golfer Greg Norman appointed as CEO.
In July 2022, LIV Golf officially applied for registration in the Official World Golf Ranking.
This process typically takes 1-2 years from application to approval and award of OWGR points. This agreement was designed to provide instant ranking points for LIV golf events.
It was later confirmed that the 2022 event would not earn points due to changes to the MENA Tour having to be considered.
The first season of the LIV Golf Invitational Series features eight 54-hole, no-cut, stroke-play tournaments and a final team championship, a “seeded four-day, four-round match play knockout” event at Trump Stadium. It will be held at National Doral Miami in October 2022.
In June 2022, it was reported that LIV Golf would evolve into a league format next year with a 14-event schedule and 48 contracted players.
On July 27, 2022, Norman announced that LIV Golf will introduce a promotion/demotion system that will rank and demote four players out of the 48 contracted players.
The event is scheduled to avoid conflicts with major championships, major PGA Tour tournaments, and international team events.
In June 2022, LIV Golf signed a worldwide broadcasting contract with video distribution service DAZN.
In January 2023, LIV signed its first national broadcast agreement in the United States with “The CW”, a broadcast network managed by Nexstar Media Group.
Fans conveyed their opinion as follows:
They are worth an estimated $600 billion, 100m lose is like you losing 5 bucks
— Spike Nolan (@TheSpikeNolan) December 29, 2023
Reminds me of when Salesforce was just burning money.
Now they dominate.
So ya …calm down haters
— birdo 🐦 (@birdo604) December 29, 2023
How many first year businesses are profitable.. in investment spending has to be extreme t launch..
— Carsley Golf (@CarsleyGolf) December 29, 2023
No shit. The product is garbage and it’s a bunch of overpaid clowns that don’t care about winning.
— Robb Fahrion || Flying V Group (@RobbFahrion) December 30, 2023
LVI Golf attorney reveal league generated 'virtually ' zero revenue for 2023
— Emilio M Rivera (@Monicq43) December 30, 2023
And yet, the PIF can continue to fund LIV for the next 100 years and beyond…while continuing to sign the games biggest stars to 9 figure contracts.
— Dustin Kersey (@dustin_kersey) December 29, 2023
Profitability debates on TWITTER!!! Lol. Elon paid 44B for a company that made money twice in 10yrs. Remember Amazon’s profit in yr 2??? 🤦🏼♂️ Yasir’s been throwing around money like Grandma at a casino. I highly doubt revenue & profit have even crossed his mind at this stage.
— Kyle (@kylelabat) December 29, 2023
The losses are in the billions, probably one of the worst investments ever but LIV was always a throwaway for PIF and the Saudi's to achieve their ultimate goal.https://t.co/PxY12y25AO at it's finest pic.twitter.com/H649cGf1k3
— Me (@HQAIX) December 30, 2023
Nobody is surprised by the historically awful numbers that LIV Golf generated. If they weren’t playing with Monopoly money they’d already be toast bc they don’t have a viable product.
— Wilk (@CDubKY3) December 30, 2023
Ah what a shame…all those “top players” purchased and still no revenue. Rahm won’t change it bc peoooe don’t care about the format or team golf for an entire season
— Gregory (@Hafdog27) December 30, 2023
