For new businesses, it is normal to either not profit or break even for the first little while of being in business. That is true for sports leagues, too, but usually both businesses and leagues start small and work their way up. LIV Golf had the advantage of being backed by people with deep pockets. However, in April, the total spending on the league is getting dangerously close to five billion. This league has yet to turn a profit, while spending is only increasing. Now, what does this mean for LIV, and how much trouble could they be in because of this?
LIV Golf’s Spending This Year
For 2025, LIV Golf had to get approval for increased spending. On January 16, LIV started with $330 million, which was increased by $344 million. LIV Golf expects that to increase to at least 1 billion by July, if they need the funding. The current total spending for all of LIV’s existence sits at $4.58 billion. $1.9 billion of that has been needed since January of 2024. It is currently predicted that LIV will cross that $5 billion threshold by the end of the year.
Obligations
All this funding has been coming from the PIF, and they are, of course, interested in seeing LIV have some success. This latest round of funding has three obligations the league needs to fulfil. These obligations include a minimum number of events, a minimum revenue, and the completion of the Fox Sports deal. That last one can help with the revenue. LIV has long struggled to acquire a competitive number of viewers for its events. In an article from Money in Sport, it was pointed out that surely the trouble of founding a whole league with all these revenue injections can’t be worth more than just buying an existing league.
“The revenue benchmarks beg the question as to why PIF has not done a deal to acquire the DP World Tour. It would have cost a lot less than $4.6 billion, it has already sunk into LIV Golf. The PGA Tour’s existing relationship with the European Tour would not be a serious barrier to getting a deal done if the Tour’s Board of Directors and membership believed the price was right.”
Is LIV In Trouble?
At the moment, the PIF is fully invested in LIV and is glad to fund its own league. As for funding issues, the PIF has very deep pockets and can easily tank any blow from operating costs. Just this year, the PIF was trying to acquire the Wentworth Golf Club in London. They are more than willing to spend a few billion to keep LIV afloat. However, what if the PIF had a change of heart?
If LIV doesn’t meet the three obligations mentioned earlier, it could spell the end for the league. The biggest concern after that is where the golfers would go? First thought is back to the PGA, but the Tour has a year-long suspension for that. For now, though, LIV is sticking around and will continue its world tour. They just wrapped up in Korea, and they are now looking to continue to Washington DC next.
Main Photo Credit: © Kim Hong-Ji/Reuters via Imagn Images
