LIV Golf losses outside US widen to almost $400m

Reuters

• LIV Golf losses hit $396m
• Backed by the PIF
• TV deals signed

Saudi-government owned LIV Golf posted a second year of financial losses, widening to almost $400 million in the 12 months to April 5, 2024, through its global tournaments outside the US.

UK-based LIV Golf Ltd has attracted some of the world’s biggest names in the sport and runs tournaments in Australia, Singapore, Spain, Mexico, the UK and Saudi Arabia. It reported losses of $395.9 million in accounts filed this month with the UK’s Companies House.

UK-registered companies have nine months after the end of the UK fiscal year to file their accounts, which are then publicly available. 

The 2023-24 loss builds on the $244 million LIV Golf lost in the previous fiscal year. Dustin Johnson, Phil Mickelson and John Rahm are among golfers who play LIV Golf tournaments. 

As it seeks to diversify its economy away from oil, and generate jobs for a growing population, Saudi Arabia has invested billions in global sports, including 900 sponsorship deals. The kingdom will host the FIFA World Cup in 2034.

Through its Public Investment Fund, the Saudi government has poured $1 billion into LIV Golf, most recently in December, according to sports financial analysis website Money In Sport reported.

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The PIF is also in discussion to acquire a minority stake in PGA Tour Enterprises, the commercial arm of the US-based PGA Tour, for around $1.5 billion.

LIV Golf revenue in the year to April 2024 rose more than sevenfold to $37 million from $5 million in the previous fiscal year, the UK accounts showed. Most of that was generated through hosting fees, sponsorship and ticket/hospitality sales and almost half of the revenue was from a tournament in Adelaide in April 2023.

As it seeks to grow, LIV Golf has signed TV deals with Fox in the US and UK terrestrial broadcaster ITV. The new CEO, Scott O’Neil, said LIV Golf tournaments will be broadcast in 100 countries and territories, with a potential audience of more than 800 million.