Summary
Highlights
On April 30th, 2026, after four years and nearly $5 billion, the Saudi government announced they were ceasing support for LIV Golf. This venture, which paid stars like Phil Mickelson hundreds of millions, represents one of the wildest business stories of the last century, offering crucial lessons on challenging established monopolies. Its failure can be traced back to its inception.
In October 2021, the Saudi Public Investment Fund (PIF) hired golf legend Greg Norman to manage their golf investments. Norman, holding a 30-year grudge against the PGA Tour, aimed to break its monopoly. The Saudis, immensely wealthy from oil, sought to build 'soft power' through sports, and golf, with its elite demographic, was a perfect target. LIV, named after the Roman numeral 54 (a perfect score), planned to disrupt the traditional 72-hole format by playing three rounds and offering large sums to top players.
By 2022, many players defected to LIV due to the lucrative offers. However, LIV almost died twice due to its lack of novelty compared to previous sports challengers like the ABA. A leaked audio in February 2022 revealed Phil Mickelson calling PGA Tour leaders "obnoxious, greedy bastards" and downplaying the murder of journalist Jamal Khashoggi by Saudi Arabia. Greg Norman's dismissive response further fueled public outrage and 9/11 families' protests, painting LIV as morally compromised.
LIV's first event on June 9th, 2022, was met with an immediate ban from the PGA Tour for participating players. Legal battles ensued, with LIV golfers suing the PGA Tour for antitrust violations, and the PGA Tour counter-suing the Saudis. A judge's ruling forced the PIF to open its financial records, creating pressure for both sides to settle.
On June 6th, 2023, PGA Tour head Jay Monahan announced a proposed merger with LIV, shocking many, including players like Rory McIlroy who had rejected Saudi money. This framework agreement, intended to close by the end of 2023, ultimately failed. The PGA Tour realized its ultimate leverage: control over major events like the Masters and US Open. LIV players struggled to gain world ranking points, limiting their access to these prestigious tournaments.
In January 2024, the PGA Tour formed PGA Tour Enterprises, a for-profit entity, securing a $1.5 billion investment from American billionaires. This provided the PGA Tour with 'clean money' to compete without Saudi baggage. Meanwhile, LIV struggled with viewership, airing on basic cable's CW and attracting significantly fewer viewers than the PGA Tour. LIV incurred massive losses, including $1.1 billion in the UK over two years, largely due to inflated player contracts.
The competition from LIV, paradoxically, benefited PGA Tour players, increasing average prize purses from $8 million in 2021 to $20 million by 2025. Greg Norman resigned from LIV in September 2025, describing the experience as "very draining." In early 2026, a war in the Persian Gulf shifted Saudi financial priorities. Finally, on April 30th, 2026, the Saudis withdrew funding from LIV Golf, having lost $5.3 billion. This story highlights the immense challenges of challenging entrenched establishments and the lengths they will go to protect their interests.