LIV Golf is hunting for a monetary lifeline amid the end of financial backing by the Saudi Arabian Public Investment Fund. The breakaway tournament is currently attempting to raise external funding so as to change its model of operation.

To secure the sustainability of operations, the league intends to secure a significant injection of capital from new investors. In addition, it aims to change the story about its financial situation.

LIV Golf is preparing a fundraising plan to raise $250 million from new investors, promising profitability within 20 months, per Axios.

The league intends to share this extensive financial plan with its top players, including stars Jon Rahm and Bryson DeChambeau, early this week before hitting the open market.

Financial advisory firm Ducera Partners will be tasked with overseeing the process, while the strategy was already discussed by two of LIV Golf's board members, together with the restructuring firm of Alix Partners.

Prospective investors will be pitched on the premise that within the promised 20 months, a full investment of $250 million will lead LIV Golf back to profitability, marking a historic turning point for the franchise.

Alternatively, the organization can also choose to have a lower threshold of "around $150 million" and then bank on "rising team values and a new media rights deal" to sustain itself in the future.

LIV Golf, once a flourishing organization, is today forced to look at external investment opportunities. The Saudi PIF looks in a different direction for its investments, stating that the "substantial investment required is no longer consistent" with the PIF's goals, per SkySports.

LIV Golf isNavigating the October Deadline 

Time is of the essence for the breakaway tour. At the moment, LIV Golf is working on what they call “remnant Saudi cash,” and they have to close this new round of funding by early October.

If the league fails to secure the desired funding by the October deadline, management will be forced to look elsewhere. They could immediately look at bridge financing in the short term to stay operational.

The key point put across to the potential investors is that even though the Public Investment Fund bankrolled LIV Golf with around $5 billion, their heavy presence discouraged several sponsors, players, and fans.

Looking ahead, the league wants to make sure that they either succeed or fail on their own merits, and therefore, this is a very important step as it approaches private equity and individual investors to raise the requisite funding.

Do you think LIV Golf will survive without Saudi backing? Let us know in the comments.

Read more at Club Golf!

Written by

Abhishek Sharma

Edited by

Surjo Ray