LIV and let die: golf rebels count cost of Saudi cutbacks and other sports fear worst | Matt Hughes
Saudi’s Public Investment Fund (PIF) has withdrawn financial backing from LIV Golf, a move that has rattled the wider sports sector. The decision reflects a strategic pivot toward domestic investment and private sector engagement, leaving clubs and athletes uncertain about future funding. The fallo…
In a surprising turn, Saudi Arabia’s Public Investment Fund (PIF) has pulled its financial support from the LIV Golf tour. The decision, announced after an unscheduled meeting of LIV executives in New York, has sent shockwaves through the global sports industry. The move is part of a broader shift in Saudi policy, as the kingdom seeks to realign its sports spending with domestic priorities and a focus on long‑term economic returns.
What Happened
On Monday, PIF officials met with LIV Golf’s leadership in New York to discuss the future of the rebel tour. By Wednesday, the PIF had decided to end its sponsorship, a decision that was not even mentioned in the CEO Scott O’Neil’s internal memo. The withdrawal came after the PIF released its 2026‑2030 financial strategy, which highlighted a move toward “value realisation through performance, innovation and private sector engagement.” LIV Golf, which has received more than $5 billion from the Saudi sovereign wealth fund, was deemed a relic of an earlier era and therefore a target for cutbacks.
Why It Matters
Saudi Arabia has spent over $10 billion on sports in the past five years, using high‑profile events to boost its Vision 2030 agenda. The sudden loss of funding for LIV Golf signals a shift away from “sportswashing” toward investments that promise tangible domestic benefits. The ripple effects are already being felt across football, boxing, esports, and mixed‑martial arts, where clubs and athletes have grown reliant on PIF money.
Impact on Other Sports
Football clubs that have benefited from PIF money are now facing uncertainty. The sale of a 70% stake in Al‑Hilal to a private company owned by Prince Al Waleed bin Talal Al Saud illustrates the new direction: football is seen as a long‑term play. PIF still owns majority stakes in Al‑Ittihad, Al‑Ahli and Al‑Nassr, but these are slated for sale in the coming years. Cristiano Ronaldo already holds a stake in Al‑Nassr, and the club hopes he will increase his investment after retirement.
In esports, Saudi will continue to invest heavily, with the Esports World Cup in Riyadh boasting a $75 million prize fund. Boxing and MMA also remain on the agenda, thanks to Turki Alalshikh, adviser to Crown Prince Mohammed bin Salman and chair of the General Entertainment Authority. Under his guidance, the GEA has partnered with UFC’s Dana White to launch a new boxing league.
Other sports that are not delivering expected returns are being phased out. The WTA Tour finals in Riyadh will not be renewed, and the 2029 Asian Winter Games have already been cancelled. Motorsport remains a priority, with a new Formula One circuit near Riyadh slated to open next year, although the Jeddah Grand Prix was cancelled amid regional tensions.
What’s Next for the Sports Community
Newcastle United, which received a £305 million investment from PIF four years ago, now faces an uncertain future. While the club has been assured that it remains a key part of PIF’s portfolio, the practical implications are unclear. Premier League and UEFA financial rules limit how much PIF can spend, and the club’s new £1 billion stadium project remains on hold.
Across the board, athletes and teams are left wondering whether they will receive the promised payouts under their contracts. The PIF’s withdrawal has raised concerns about the sustainability of Saudi’s sports ambitions, especially as the kingdom seeks to balance international prestige with domestic economic goals.
In the coming months, the sports world will watch closely to see whether other high‑profile events in Saudi Arabia, such as the Asian Champions League quarter‑finals in Jeddah, will continue as scheduled. The decision to cut funding for LIV Golf may signal a broader retrenchment, but it also opens the door for new private‑sector partnerships that could reshape the sports landscape in the kingdom.
Key Takeaways
- PIF has ended its sponsorship of LIV Golf, reflecting a shift toward domestic investment.
- Football clubs like Al‑Hilal, Al‑Ittihad, Al‑Ahli and Al‑Nassr are slated for sale or restructuring.
- Esports, boxing, and MMA remain high priorities, while tennis and winter sports are being cut.
- Newcastle United’s future is uncertain amid PIF’s limited spending capacity.
- Saudi’s sports strategy now focuses on private‑sector engagement and long‑term economic returns.
FAQ
- Why did PIF cut funding for LIV Golf? The decision aligns with a new strategy to prioritize domestic benefits and private‑sector investment, moving away from high‑profile sportswashing.
- What does this mean for Saudi football clubs? Clubs with PIF stakes are likely to be sold or restructured to attract private investment.
- Will esports still receive Saudi funding? Yes, esports remains a key investment area due to its popularity among Saudi’s young population.
- Is Newcastle United affected? The club’s future funding is uncertain, and its new stadium project remains delayed.
Why it matters
Saudi’s withdrawal from LIV Golf marks a turning point in how the kingdom funds sports, potentially reshaping the global sports economy and altering the future of high‑profile events in the region.
Key points
- PIF ends LIV Golf sponsorship amid strategic shift
- Football clubs face sale or restructuring
- Esports, boxing, MMA remain priorities
- Newcastle United’s future uncertain
- Saudi focuses on private‑sector engagement
Frequently asked questions
Why did PIF cut funding for LIV Golf?
The decision aligns with a new strategy to prioritize domestic benefits and private‑sector investment, moving away from high‑profile sportswashing.
What does this mean for Saudi football clubs?
Clubs with PIF stakes are likely to be sold or restructured to attract private investment.
Will esports still receive Saudi funding?
Yes, esports remains a key investment area due to its popularity among Saudi’s young population.
Is Newcastle United affected?
The club’s future funding is uncertain, and its new stadium project remains delayed.
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