How much has LIV Golf cost Saudi Arabia? Financial report reveals staggering numbers

The Kingdom’s Public Investment Fund has ploughed a jaw-dropping amount into LIV Golf, according to experts.

Saudi Arabia’s Public Investment Fund has spent an eye-watering amount of money funding LIV Golf, according to a recent report.

The league’s financial status was broken down by the experts at Money in Sport, who revealed that the investment will likely top $5 billion by the end of the year.

LIV Golf UK – who manage all of LIV’s operations outside of the United States – filed their 2023 numbers last week.

Notably, revenues picked up from $4.9m in 2022 to $37.1m in 2023, though LIV Golf Adelaide is responsible for almost half of that.

The largest income was in tournament hosting fees, which made up 36.7% of revenues, while sponsorship made up 26.4%, ticket sales 20.5%, broadcasting rights 8%, and merchandise 5.2%.

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But it’s the outgoing numbers that ring the most alarm bells.

The per-tournament cost paid to 54 – formerly Performance54 – to run all of LIV’s event management, marketing and sponsorship fell from $10m to $7.3m between 2022 and 2023.  

Those calculations are based on the fact the PIF paid 54 $59m to put on six tournaments in 2022 and $102m for 14 tournaments in 2023.  

Elsewhere, legal and professional costs increased from $7.5m to $15.7m, staff costs rose from $6.9m to $13.4m, while consultancy fees fell from $9.8m to $7.6m.

Also listed is “player indemnification” which cost LIV Golf just shy of $10m across the two years.

“This expense most likely relates to the penalties being handed out by the DP World Tour to members and former members who play on the LIV tour and continue to play occasional events on the European Tour,” the report states.

“The 2022 P&L charge of $6.9 million was paid out in 2023 which must have been a welcome upside in the European Tour’s books that year.”

But it’s the operating losses that will cause most alarm to those who sign the checks.

“The losses being incurred by LIV are piling up at a staggering rate, necessitating regular injections of new capital by the Saudi PIF,” the report adds.

In 2022, it reveals, operating losses came in at $244m, which increased to $394m in 2023.

Meanwhile, share issues – the number of shares a company makes available for investment – increased from $273m in 2022 to $337m in 2023 and then to $424m last year.  

“The total capital injected to LIV Golf UK topped $1 billion after a recent issue of new capital in December 2024,” Money in Sport continued.

“The level of new share issues in 2024 of over $400 million implies no improvement in LIV’s 2024 financial performance (ex-USA) which won’t be filed for another 12 months.”

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The report concludes that the biggest issue now is players who are up for contract renewals.

In concluding the report, Money in Sport wrote: “We know from the statutory reporting by the Jersey holding companies that the total capital approved by PIF is now at $3.9 billion, $1 billion of which relates to LIV Golf UK and the balance to LIV Golf Inc. in the US.

“Clearly the US financials must be considerably worse than the rest of the world performance reported by LIV Golf UK.

“PIF’s investment in LIV Golf could approach $5 billion by the end of this year, with further big bills on the horizon if they want to retain the top golfers as their contracts expire.”

Maybe that’s why the Saudis are so keen to get a deal done with the PGA Tour…