LIV Golf has a problem. This year, the PIF has announced that it would cease its funding of the league at the end of the season. For a big spender like LIV Golf, this means that it needs to find a new revenue source and STAT. The league does have a plan B that’s in the works, and so do the players.
LIV Golf Finding Funds
For the league itself, the biggest problem is finding funding for its massive events. With the funding issue, the league is looking to restructure its finances and take a new business approach. For this reason, LIV has partnered with Pirinate Consulting Group and JZ Advisors. All on a new independent board headed by heads of those firms, Gene Davis and Jon Zinman, respectively. They have experience working with companies going through some troubled times, and they have their work cut out for them with LIV Golf. The league has received $5 billion since its inception, and maybe that gave it a head start going into next season.
However, according to recent reports, the possibility of bankruptcy is on the table. At least in the US, if the league can’t get adequate sponsorship. CEO Scott O’Neil is still staying positive on the issue, even saying the following to Sports Illustrated:
“We’re going to have to change some things we do, of course, and yes, we’ve already made some changes,” O’Neil said. “I definitely will not be talking through specifics of the plan, but it’s a playbook that won’t surprise too many people once you see it.”
It will still need to rein in its budget for next season, but if they land enough sponsorships, it is possible.
The Players’ Plans
For the players, there are, of course, other leagues that can take them if the LIV ship starts sinking next season. The PGA has opened a program for players to return when Brooks Koepka made the jump. However, there are reports that at least a dozen players would rather retire than go back to the PGA. Speaking with The Times, Anirban Lahiri talked about the biggest grievances that LIV players have with the PGA, that being transparency.
Other players do have a safety net and will either fully go into retirement or fall back on another career prospect. Bryson DeChambeau has his YouTube channel, and it does good numbers, enough that he can do it full-time if it comes to that. Then there are the players who are lesser known or started professionally on LIV. Unless the PGA changes its policy, the players will need to find other pathways back into the professional sphere.
LIV Golf’s Future
At the time of writing, the future of LIV Golf is still uncertain. The funding that it has received through the PIF has kept it comfortably afloat since its inception. The league has largely gotten by on its star power with former world No. 1s and big names from leagues like the PGA.
So far, LIV has struggled to gain an American audience and has yet to earn a profit, all while being a big spender. The league has also struggled to land sponsorships throughout its short history. If it becomes the worst-case scenario for LIV, its top players will be fine as they have a backup plan on their own. If the league lives on, it will need to scale things back massively.
Main Photo Credit: © Aaron Doster-Imagn Images
