Last Tuesday, the executive director of LIV Golf, Scott O’Neildeclared in the program ‘Halftime Report’ of CNBC that the circuit It will take three years to become profitable if it manages to implement its new model by 2027. Let us remember that The Saudi Arabian Public Investment Fund (PIF) announced that it will only finance until the end of this season.
LIV Golf has just played its tournament in Spain and its next event does not take place until July 23 in Englandsince the New Orleans test was postponed sine die. During O’Neil’s interview on CNBC, he was asked: “Can you guarantee today that the four remaining tournaments on your schedule will actually take place?”.
“What I can guarantee is incredible profitability if you invest in this business”O’Neil responded. Given his evasiveness, the next question followed the same line and emphasized whether the PIF would comply with what was agreed. The LIV CEO said: “You have to trust the word of an organization as incredible as the PIF”. He threw the ball into the court of his current patron.
As revealed by the Financial TimesLIV Golf is still waiting for about 400 million dollars in PlF payments corresponding to the funds necessary to organize the final tournaments of their season. Those from the United Kingdom, New York, Indianapolis and Michigan are pending. According to the prestigious economic newspaper, right now there would be concern with the last two appointments. The PIF has recently carried out a payment of 200 million dollars of the 600 million necessary to finish the season.
Let us remember that The prize pool per tournament this year increased to 30 million dollars (25 million euros), with 22 million for the individual category and 8 for teams. The final prizes of the points and team classification must also be taken into account. Last year, the LIV Golf individual champion pocketed 18 million and the second 8.
Looking ahead to next year, LIV Golf has received an unexpected indirect blow. The so-called LIV Golf 2.0 planned to associate with historic national tournaments to consolidate its new calendar. The Australian Open was part of their plans because they have a team of that nationality. Two days ago the PGA Tour announced a three-year agreement with the DP World Tour and Golf Australia to promote the Australian Open. A well-planned move by the PGA to weaken its rival and in the process enter a market that has been very profitable for LIV.
