Saudi Arabia is set to end its financial support for LIV Golf, casting significant doubt on the future of the breakaway league. The announcement, expected on Thursday, will lead to Yasir Al-Rumayyan stepping down as chairman as LIV seeks new investors.

Saudi Arabia Withdraws Funding

The formal announcement of Saudi Arabia’s withdrawal of funding is expected around midday on Thursday. This marks a major setback for LIV Golf, which was launched in 2022 with substantial investment from the Kingdom.

League Operations to Continue, Future Uncertain

Despite the loss of funding, LIV Golf intends to continue operations and aims to stage events in 2027. However, the league’s prospects for survival appear increasingly uncertain given the limited returns on the $6 billion invested by Saudi Arabia.

Leadership Changes and Financial Restructuring

LIV Golf team captains were briefed on Wednesday regarding the impending changes, following weeks of speculation. Yasir Al-Rumayyan, Governor of the Saudi Public Investment Fund, will resign as LIV Golf chairman, with plans to appoint at least two new board members.

Seeking Alternative Investment

The cessation of Saudi funding will force LIV Golf to actively seek alternative financial sources. League officials remain optimistic about attracting new investors to the project.

Impact on Players and Tournament Schedule

Players like Jon Rahm, who joined LIV with lucrative contracts, may face challenges returning to established tours such as the PGA Tour. The league is considering reducing its tournament schedule from 14 events to cut costs, as each event currently costs $30 million in prize money.

Contract Renewals and Financial Losses

Retaining star players like Bryson DeChambeau, whose contract expires soon, is dependent on securing new investment. LIV Golf is reportedly losing around £75 million per month and faces demands for substantial sums for contract renewals, potentially up to £400 million for DeChambeau.

Factors Influencing the Decision

The ongoing conflict in the Middle East has contributed to Saudi Arabia’s decision to withdraw funding. Despite recent positive trends, including new sponsorship deals and increased revenue, the league’s financial situation remains precarious.

Potential for New Investment

A senior source within LIV suggests that removing Saudi Arabia from the equation could actually open up new investment opportunities due to concerns about the Kingdom’s international reputation. Players are also exploring options for returning to the PGA and DP World Tours.