MEXICO CITY — As speculation swirls around the financial stability of LIV Golf, league CEO Scott O'Neil sought to reassure stakeholders on Thursday, stating that the Saudi-backed circuit has the funding secured to complete its current season and push forward into 2026.
O'Neil's comments came during a broadcast of the opening round of the LIV Golf Mexico event at Casa de Campo, amid reports that Saudi Arabia's Public Investment Fund (PIF) — the league's primary backer — might be preparing to reduce its financial support. The PIF has poured more than $5 billion into LIV Golf since its debut tournament in June 2022, but a Wednesday report in the Financial Times suggested the fund was on the verge of scaling back its involvement.
"The reality is you're funded through the season and then you work like crazy as a business to create a business and a business plan to keep us going," O'Neil told TNT Sports. "But that's not different from any other private equity-funded business in the history of man."
The league, which features 54-hole team and individual competitions with massive prize purses, has eight tournaments left this season, including five in the United States. O'Neil emphasized the organization's momentum, noting in a memo to staff on Wednesday that the 2026 season would proceed at "full throttle." He added that recent meetings, including discussions with 50 people at the Masters tournament, had yielded a strategic plan that "might surprise people."
Despite the optimism from leadership, challenges persist. LIV Golf's operational costs are substantial, with each event offering a $30 million prize fund. O'Neil acknowledged the need for ongoing revenue growth, projecting that 10 of the league's 13 teams and four of its 14 events would turn profitable this year. Metrics such as ticket sales and team sponsorships have reportedly increased, providing some positive indicators.
"Given the momentum of this business, we're really excited about where we are and the position where we are," O'Neil said. "... This notion of bringing teams to market, I had two calls this morning. This notion of, 'Do you have to raise money?' Probably. This is business. But if we keep the trajectory going the way we are and the revenue growth going, this is going to be a really good business for a really long time."
The funding questions have already prompted action from event hosts. In Louisiana, Economic Development Secretary Susan Bourgeois has requested confirmation from LIV Golf by Monday on whether its planned tournament at Bayou Oaks at City Park in New Orleans, scheduled for June 25-28, will proceed as planned, according to Nola.com.
Players, meanwhile, appear unfazed by the off-course drama. Jon Rahm, a high-profile defector from the PGA Tour who joined LIV last year, dismissed concerns during Thursday's round in Mexico City. "For me, it didn't make sense to think about it or waste time thinking about [it]," Rahm said. "Since everything happened so suddenly and so quickly, I wasn't very worried about it because normally, before the rumors start, we already know something -- there's always someone within the league who knows something. It happened so fast that I really didn't worry about it."
The broader context of LIV Golf's funding ties into shifts within the PIF, the sovereign wealth fund chaired by Saudi Crown Prince Mohammed bin Salman. On Wednesday, the prince approved a five-year strategic plan for the fund emphasizing domestic Saudi initiatives. Adding to the scrutiny, the PIF sold a 70% stake in Saudi Pro League soccer club Al Hilal to Kingdom Holding Company on Thursday. That firm is operated by billionaire Prince Alwaleed bin Talal, a member of the Saudi royal family.
Legal troubles are also mounting for LIV Golf and the PIF. On Thursday, the two were named as defendants in a lawsuit filed in London's Commercial Court by World Golf Group and the Premier Golf League. The suit's details were not immediately available, and attorneys for the plaintiffs did not respond to requests for comment from ESPN. The Premier Golf League, a British-based venture, had aimed to launch a team-format circuit in 2020, recruiting PGA Tour stars like Justin Rose, Brooks Koepka, Rickie Fowler, Dustin Johnson, and Phil Mickelson with promises of $30 million upfront payments and team ownership stakes.
The Premier Golf League envisioned 18 worldwide tournaments featuring 48 players in 54-hole events, with $20 million purses per competition and $4 million for winners. It sought a partnership with the DP World Tour in fall 2020, touting ambitions to elevate the European circuit. In response, the PGA Tour forged a strategic alliance with the DP World Tour to counter the threat.
LIV Golf, launched with the backing of former world No. 1 Greg Norman, ultimately disrupted the golf landscape by luring top talents away from the PGA Tour. Players like Mickelson, Koepka, and Johnson signed guaranteed contracts reportedly exceeding $100 million each. The league's arrival intensified a rift in professional golf, leading to antitrust lawsuits and ongoing negotiations between LIV, the PGA Tour, and the DP World Tour.
While O'Neil's assurances aim to steady the ship, the league's future remains intertwined with the PIF's priorities. The fund's recent pivot toward domestic projects could signal a reevaluation of high-profile international sports investments, including LIV Golf. Observers note that the circuit's aggressive spending — on player contracts, event production, and global expansion — has yet to yield widespread profitability, even as fan engagement and sponsorships show signs of growth.
In New Orleans, local officials are watching closely, given the economic boost expected from the June event. The tournament at City Park would mark LIV's return to the U.S. after stops in Miami and Dallas earlier this year. Bourgeois's deadline underscores the real-world stakes for host cities banking on the league's commitments.
As LIV Golf navigates these uncertainties, the broader golf world awaits clarity on potential mergers or reconciliations with established tours. For now, the focus remains on the course, where players like Rahm continue to compete amid the headlines. O'Neil's vision of a sustainable, team-based model persists, but its realization will depend on bridging financial gaps and resolving legal hurdles in the months ahead.