LIV Golf hires monetary advisers in scramble to safe funding lifeline after Saudi Arabia pulls plug on its funding

LIV Golf is parachuting in a heavyweight crew of economic advisers to assist it safe a multi-billion greenback funding lifeline after its Saudi sovereign backers left its future hanging by a thread, in response to Sky Information’ Mark Kleinman.

Kleinman has learnt that LIV Golf has employed restructuring specialists on the consulting agency AlixPartners to assist draw up a recent marketing strategy geared toward securing exterior funding.

Sources near the game stated LIV Golf was additionally days away from retaining a number one funding financial institution to help with the collection’ capital-raising efforts because it kicks off talks with potential buyers.

Affirmation that Saudi Arabia’s Public Funding Fund (PIF) is pulling the plug on its funding of LIV Golf on the finish of the season has sparked a scramble to salvage a contest that includes among the world’s finest golfers, together with Jon Rahm and Bryson DeChambeau.

Insiders stated AlixPartners’ engagement by LIV Golf was additionally more likely to be interpreted as a transfer to attract up contingency plans for a winding-down or insolvency course of on the finish of the yr if new buyers can’t be recognized within the coming months.

Evaluating all choices for LIV

One supply insisted, nonetheless, that the agency’s involvement was about devising “a well-developed, credible financial plan to potential investors”, whereas acknowledging that the corporate’s board would “evaluate all options for LIV”.

In a press release issued to Sky Information, a LIV Golf spokesperson stated: “LIV Golf has engaged experienced advisers across disciplines to identify and secure long-term strategic investment partners and guide us through our next phase.”

LIV Golf’s Saudi backers have spent billions of {dollars} making an attempt to determine the breakaway tour because the pre-eminent world power in one of many world’s hottest sports activities.

After writing huge cheques to lure among the world’s high gamers away from the PGA Tour, nonetheless, the prospect of it changing into worthwhile has remained a distant one.

Rahm, for instance, signed as much as the LIV tour in return for a reported $300m (£222m) fee, with different gamers additionally receiving large sums to defect.

Now in its fourth full season, the LIV Golf League consists of 13 groups competing for particular person and crew titles at main golf programs all over the world.

Its tournaments function 57 gamers from 21 completely different international locations competing in 10 international locations and 5 continents.

This week, LIV Golf introduced the appointment of two restructuring specialists – Jon Zinman and Gene Davis – to its board of administrators because it makes an attempt to enchantment to exterior backers for the primary time.

“LIV Golf has built something truly differentiated – a global league with passionate fans, world-class talent, and demonstrated commercial momentum,” Davis stated.

“The executive leadership team, along with Jon and I, see a clear opportunity to help the league formalise its structure, attract and secure long-term capital, and position the business for growth while continuing to promote the game across the world.

“We sit up for positioning LIV Golf for future success.”

Event in Louisiana cancelled

The Saudi withdrawal had been on the playing cards for a number of weeks, with LIV Golf’s chief government Scott O’Neil insisting the collection had a viable future.

This week, nonetheless, its match in Louisiana, which was scheduled to happen in late June, was cancelled amid issues that the soccer World Cup – which is being staged within the US, Canada and Mexico – would impression spectator attendance and viewing figures on the golf occasion.

The seek for new buyers is more likely to be a fraught one, given LIV Golf’s large spending commitments and its reliance to a big diploma on sponsors linked to the Saudi state.

It had already begun exploring the sale of stakes in particular person groups, with bankers at Citi advising on that course of.

LIV Golf was essentially the most distinguished amongst a string of sporting codecs devised with the backing of Saudi’s huge sovereign chequebook lately because the Gulf state has sought to exert larger world affect.

The nation has additionally sought to play a significant function within the financing of boxing, whereas PIF can also be the bulk shareholder in Newcastle United Soccer Membership.

PIF stated earlier this week that it had “made the decision to fund LIV Golf only for the remainder of the 2026 season”.

“The substantial investment required by LIV Golf over a longer term is no longer consistent with the current phase of PIF’s investment strategy.

“This resolution has been made in gentle of PIF’s funding priorities and present macro dynamics.

“The LIV Golf board has created a committee of independent directors to evaluate strategic alternatives for its future beyond PIF’s funding horizon.

“LIV Golf has considerably grown the sport globally by means of its transformational and constructive impression.

“It has forever changed the game of golf for the better.

“PIF stays dedicated to deploying capital internationally in keeping with its funding technique, together with its substantial present and future investments in varied sports activities as a precedence sector.”

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