LIV Golf files for bankruptcy protection but PIF commitment to Newcastle United remains clear
The Public Investment Fund has bailed on LIV Golf but remains 100 per cent committed to its Newcastle United investment.
LIV Golf have filed for bankruptcy protection in the United States amid continued uncertainty over the tour’s future.
The Public Investment Fund - which owns an 85 per cent stake in Newcastle United - withdrew funding from the tour earlier this year. Set up in 2021, PIF rocked the sporting world as several of golf’s biggest stars broke away from the PGA Tour to join the newly established LIV.
Akin to the Saudi Pro League in football and Riyadh Season in boxing, this was the Gulf state’s attempt to muscle into another lucrative corner of the sporting world. However, to claim the tour has haemorrhaged money would be an understatement.
Investment in LIV surpassed £3.8billion when a further £229million was injected earlier this year. Outside the United States, overall losses have reached £810million since LIV’s formation five years ago.
And with the bulk of its operations taking place across the Atlantic, the true figure is likely to be considerably higher. Now, the future of a tour featuring stars such as Bryson DeChambeau and Jon Rahm is in doubt.
LIV Golf update
Private equity firm BC Partners have stepped in as the primary backer as part of plans to restructure the league ahead of a proposed 2027 relaunch. They will inherit a sizeable mess, with LIV Golf axing 90 per cent of its staff following the 2026 season.
Every player on the roster is also eligible to leave - with several owed millions - as a result of the bankruptcy protection proceedings. The Chapter 11 filing shows the company has between £370million and £730million in liabilities, with assets ranging from £74million to £500million.
In a statement yesterday, LIV Golf executive Scott O’Neil said the tour aims to become majority-owned by its players. He said: “The people of LIV Golf, led by the players, have continued to show incredible resilience, commitment, and a shared belief in what we are building.
“Thanks to their tireless work, LIV Golf has created a foundation to entertain and inspire the next generation of global golf fans around the world. This process gives us the structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf.
“One built around the fans, an innovative, player-first ownership model, and a part of the global golf ecosystem. We are excited about what lies ahead and yet, there is still much to accomplish in the months ahead.”
What this means for Newcastle United
In short, nothing. Yasir Al-Rumayyan announced a new four-year strategy for the wealth fund in April, with a greater focus on sustainability.
Clearly, given the huge outlay for little return, LIV Golf did not align with that vision. Many Newcastle fans had raised concerns over PIF’s commitment to the club in recent months.
However, the Magpies provided a clear signal of intent by announcing plans for a £190million, state-of-the-art training complex. The project eased growing disillusionment among supporters over the ownership’s intentions.
On a financial level, Newcastle are now valued at more than £1billion. PIF paid £305million for the club just five years ago, and the Magpies are now considered a shrewd investment within its portfolio.
Owning a Premier League asset also gives the Saudis a foothold in one of the most powerful sporting leagues on the planet. The noises from St James’ Park have consistently suggested that PIF remain committed to Newcastle.
“For us at the PIF, we always continue to invest, be very much diverse and our portfolio structurally resilient,” Al-Rumayyan said in April. “We are a long-term, patient investor and we will remain committed to all of our investments and investment strategy around the world.
“A lot of people thought we would stop deploying investments internationally. I can tell you that we're not going to stop. The percentages are going lower, but the absolute numbers will continue to grow.
“We just got our board to approve our new strategy until the end of 2030. What PIF did since 2016, we basically brought the Kingdom of Saudi Arabia to the world. Now our new strategy is to bring the world back to Saudi.”