LIV CEO Says League’s Value Lies in the Teams As Saudi Era Nears End

Why It Matters

Shifting focus to team valuations is crucial for attracting investors and ensuring LIV’s survival once sovereign funding ends, potentially reshaping professional golf’s financial landscape.

Key Takeaways

• LIV aims for $1 billion valuation per franchise.
• Minority stakes offered at $300 million valuations.
• Ducera Partners hired as investment banking adviser.
• 75% league ownership, 25% player ownership of teams.
• PIF funding ends after 2026, prompting restructuring.

Pulse Analysis

The Saudi Public Investment Fund’s decision to withdraw its backing after the 2026 season marks a turning point for LIV Golf, a league that has relied on deep pockets to challenge the PGA Tour. In his first public remarks since the announcement, CEO Scott O’Neil reframed the business model around the league’s 13 franchise teams, projecting that each could eventually be worth $1 billion. By positioning the clubs as standalone assets rather than a single cash‑driven entity, LIV hopes to create a sustainable revenue stream that can survive without sovereign wealth support.

To translate that vision into capital, LIV has already begun courting minority investors at $300 million valuations, a figure that reflects the league’s confidence in its brand equity and media rights. The appointment of U.S. advisory firm Ducera Partners and the formation of an independent board staffed by restructuring specialists signal a disciplined approach to valuation, governance, and potential sale processes. With the league retaining a 75% stake in each team and players holding the remaining 25%, the structure mirrors other franchise models in sports, offering investors a clear path to equity upside while preserving player involvement.

The shift toward team valuation also raises questions about player loyalty and the league’s competitive positioning. While individual purses remain at $20 million and team prizes at $10 million, the real incentive for stars such as Jon Rahm and Bryson DeChambeau lies in equity stakes that could appreciate dramatically if a franchise reaches the $1 billion target. However, the looming funding gap may accelerate player exits to the PGA Tour, especially if the league cannot guarantee a stable cash flow. Observers will watch closely whether the franchise model can deliver the promised returns and keep LIV viable beyond the Saudi era.