LIV Golf Needs Money: What Comes Next for the Controversial Breakaway Tour

Two years after its explosive, controversy-drenched launch, LIV Golf is facing a stark reality check: the cash is running out. For a tour that burned through an estimated $2 billion in its first two seasons on massive player signing bonuses, $25 million per-event purses, and global marketing blitzes, the path to profitability remains nowhere in sight.

Why LIV Golf Is Burning Through Cash Faster Than Expected

LIV’s financial model was always built on heavy upfront investment from Saudi Arabia’s Public Investment Fund (PIF, the tour’s primary backer). But mounting costs are outpacing even the PIF’s deep pockets.

• Player contracts: Top signings like Phil Mickelson, Brooks Koepka, and Bryson DeChambeau received deals worth $100 million or more, with guaranteed payouts regardless of performance.
• Event operations: Each of LIV’s 14 annual events costs tens of millions to produce, including venue rentals, broadcast production, and logistics for its global tour stops.
• Low revenue returns: LIV’s U.S. broadcast deal with The CW pays a fraction of what the PGA Tour earns from ESPN and NBC, and sponsorship revenue lags far behind established tours.
• Team costs: LIV’s unique team format requires additional funding for team branding, travel, and separate team championship events.

5 Potential Next Steps for LIV Golf

1. Push for a Full PGA Tour Merger

LIV and the PGA Tour signed a framework agreement in June 2023 to merge commercial operations, but the deal has stalled for months amid antitrust concerns and pushback from PGA Tour players. A full merger would give LIV access to the PGA Tour’s lucrative broadcast deals, sponsorship networks, and ticket sales revenue, instantly solving its funding gap.

Hurdles remain: U.S. regulators are scrutinizing the deal for anticompetitive practices, and many PGA Tour players still oppose integrating LIV players into their events.

2. Secure Additional PIF Funding Tied to Growth Milestones

LIV’s primary backer, the Saudi PIF, could inject more capital into the tour, but it is increasingly tying new funding to strict growth targets. This could include requirements to grow U.S. viewership by 20% year-over-year, secure 10 new top-tier sponsors, or break even on event operations within 18 months.

While this would keep LIV afloat, it would deepen the tour’s reliance on Saudi funding, likely sparking renewed PR backlash from critics who accuse the tour of sportswashing.

3. Expand Into Untapped Markets and New Revenue Streams

LIV has focused heavily on U.S. and European markets, but it could pivot to high-growth golf regions like Asia, the Middle East, and Latin America to boost ticket sales and local sponsorship revenue. It could also launch a direct-to-consumer streaming service featuring exclusive player docuseries, behind-the-scenes event footage, and original golf content to drive subscription revenue, a model that has worked for other niche sports leagues.

4. Slash Operating Costs Drastically

If new funding is not forthcoming, LIV may have no choice but to cut costs. This could include reducing purses for smaller events, cutting its annual schedule from 14 to 10 events, and ending guaranteed contracts for new player signings.

LIV could also downsize its production teams and reduce marketing spend in markets where it has failed to gain traction, such as the U.S., where viewership for LIV events remains a fraction of PGA Tour ratings.

5. Partner With Established Golf and Sports Brands

LIV could form strategic partnerships to share costs and boost revenue. A deal with the DP World Tour (European Tour) to co-host events would reduce venue and production costs, while partnerships with major sports brands like Nike or Adidas for exclusive LIV player apparel lines could drive new sponsorship revenue.

Tech partnerships with companies like Apple or Amazon for streaming and data analytics could also open new income streams.

What This Means for Golf Fans

LIV’s financial crunch will shape the future of professional golf for years to come. If LIV stabilizes, it could force the PGA Tour to increase prize money and improve benefits for players across all tours. If it fails to secure funding, many LIV players could return to the PGA Tour, ending the two-year split that has divided the sport.

The next 12 months will be critical: LIV’s backers have made it clear they will not fund endless losses, so expect big moves from the tour in the near future.

LIV Golf’s money troubles are not a death knell, but they are a wake-up call. The tour’s survival depends on making tough, unpopular choices in the coming months, whether that’s a controversial merger, deep cost cuts, or a total pivot to new markets. For golf fans, one thing is certain: the drama between LIV and the establishment is far from over.