Saudi Arabia’s sovereign wealth fund is poised to slash funding for LIV Golf, the 2022‑launched circuit that challenged the PGA Tour. After four years of heavy outlays, the project failed to land lucrative TV deals and reported nearly $600 million in losses for non‑U.S. operations in 2024. The shift marks tighter fiscal discipline amid a mounting budget deficit.

The Public Investment Fund’s governor, Yasir al‑Rumayyan, has signaled a broader slowdown of flagship projects such as Neom, the 2030 World Expo, and the 2034 FIFA World Cup. LIV Golf, once a centerpiece of the fund’s ambition to reshape sports, now illustrates the limits of Saudi spending when returns fall short of expectations.

LIV’s failure to secure a merger with the PGA Tour—despite support from former President Trump—underscores a strategic misstep that cost the sovereign wealth fund a high‑risk venture without a clear exit plan. The loss also weakens Saudi Arabia’s broader strategy to use sports as a vehicle for soft power and global influence.

Investors watching Saudi sovereign activities will now scrutinize the fund’s allocation of capital, especially in high‑profile entertainment and sports ventures. A withdrawal from LIV Golf could prompt a reevaluation of the kingdom’s global branding strategy and alter the appeal of Riyadh as a destination for foreign investment.