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

Saudi Arabia Withdraws Funding

The future of LIV Golf hangs in the balance as Saudi Arabia prepares to formally announce its withdrawal of funding for the breakaway league on Thursday. Sources within LIV Golf confirm that an announcement is expected around midday, detailing the end of the substantial financial backing that launched the league in 2022.

League's Future Uncertain

Despite this significant setback, LIV Golf intends to continue operations, aiming to stage events in 2027, though its prospects for survival appear increasingly uncertain given the limited returns on the $6 billion invested by Saudi Arabia. Senior figures within the league remain optimistic, believing that new investors can be attracted to the project.

Leadership Changes and Cost Cutting

Captains of LIV Golf teams were briefed on Wednesday regarding the impending changes, following weeks of intense speculation about the league’s future. The announcement will include the resignation of Yasir Al-Rumayyan, Governor of the Saudi Public Investment Fund, from his position as LIV Golf chairman, with plans to appoint at least two new board members.

A key element of the announcement will be the confirmation of the cessation of Saudi funding, forcing LIV Golf to seek alternative financial sources. The league is reportedly considering drastic measures to reduce costs, including a potential reduction in the number of tournaments from the current 14, as each event currently costs an estimated $30 million in prize money alone.

Player Contracts and Potential Returns

Players like Jon Rahm, who were enticed to join LIV with lucrative contracts, may now face challenges in returning to established tours like the PGA Tour. The retention of star players like Bryson DeChambeau, whose contract expires at the end of the current season, is heavily dependent on securing new funding.

Seeking New Investment

LIV Golf is actively exploring options with private equity firms to fill the financial void left by the Saudi withdrawal, with some internal confidence that these efforts will be successful. Interestingly, a senior LIV source suggests that removing the Saudi connection could actually open up new investment opportunities, citing concerns about the Kingdom’s international reputation regarding human rights.

Recent Setbacks and Positive Momentum

The situation presents a significant challenge for LIV Golf, despite the confident public statements from CEO Scott O’Neil. While O’Neil has asserted the league will continue ‘uninterrupted and at full throttle’, recent actions suggest otherwise.

The postponement of a scheduled event in New Orleans in June, officially attributed to weather and a clash with the World Cup, is widely interpreted as a sign of scaling back operations. Ironically, this crisis arrives at a time when LIV Golf was experiencing some positive momentum, with increased sponsorship deals, improved broadcasting arrangements, and a reported $100 million revenue increase through the first five events of 2026.

Furthermore, ten of the thirteen LIV teams and four of the tournaments were projected to be profitable for the season. However, these gains are overshadowed by the league’s substantial monthly losses, estimated at around £75 million, and the demands of key players like DeChambeau, who is reportedly seeking a renewal deal worth up to £400 million.

Reasons for Saudi Withdrawal

The Saudi decision is reportedly linked to the ongoing conflict in the Middle East, making continued financial support unsustainable. O’Neil has acknowledged that profitability may be five to ten years away, highlighting the precarious position of the league. Players are already exploring potential avenues for returning to the PGA and DP World Tours, with some, like Tyrrell Hatton, potentially able to break their LIV contracts and others hoping for favorable re-entry terms similar to those granted to Brooks Koepka.