LIV Golf announces mass layoffs as Saudi funding ends
LIV Golf has told most of its employees they will be laid off in early September, following the end of Saudi Arabia's Public Investment Fund's financial support. The league spent over $5 billion in five years and is seeking a new lead investor to fund a 'LIV 2.0' model. The CEO acknowledged a compressed timeline and the need for player buy-in for any deal.
The layoffs follow a rapid unraveling of the league's financial foundation. After the Public Investment Fund's five-year, $5 billion commitment ended, the organization cancelled its Michigan team championship, reduced the Indianapolis event purse by roughly half, and faced lawsuits from unpaid vendors and contractors. The league's leadership now describes its focus as completing a transaction before operations can restart.
A proposed LIV 2.0 model would shrink the schedule to ten events in 2027, split evenly between US and international venues. The reported lead investor, BC Partners' Ted Goldthorpe, has signed a term sheet, but any deal requires approval from a majority of current players. The league is seeking between $250 million and $350 million in new funding, targeting profitability within three years.
The collapse of LIV Golf's Saudi-backed funding model could reshape professional golf's competitive landscape, potentially sending players back to established tours and altering the sport's financial dynamics. Vendors, contractors, and employees face immediate economic hardship from unpaid claims and job losses. The outcome may also influence how other sports leagues approach sovereign wealth funding, as investors and athletes weigh the risks of dependence on single-source financing against the promise of rapid growth.