How does LIV Golf make money? As Saudi league continues to rival PGA Tour

LIV Golf has swiftly risen to prominence in the world of professional golf since its establishment in June 2022, now challenging the PGA Tour for supremacy in the sport.

With mega-money contracts, substantial prize pools, and innovative 54-hole tournaments without cuts, LIV Golf has quickly become a force to be reckoned with in just under two years.

Funded by the Public Investment Fund of Saudi Arabia (PIF), LIV Golf has attracted some of the biggest names in golf, including Phil Mickelson, Dustin Johnson, and Brooks Koepka, thanks to its staggering financial incentives. Notably, these players, along with others, received nine-figure contracts to join LIV Golf in 2022.

The signing of Jon Rahm set a new record for the league, with reports indicating that his move from the PGA Tour to LIV Golf came with a staggering £450 million contract, showcasing the league’s financial might.

Despite its short existence, LIV Golf now hosts 14 events per season, including 13 regular tournaments followed by the Team Championship. Each regular event boasts a £20 million prize pool, with £16 million allocated to individual standings and £4 million to the top three teams.

What sets LIV Golf apart is its guarantee of payouts to all 54 players competing in each event, as there is no cut line. Additionally, the season-ending Team Championship offers an even larger bonus, with £40 million up for grabs across the final event of the year.

However, questions have been raised about how LIV Golf generates revenue. In 2023, the league’s revenue was just under £81 million, with limited income from fan attendance due to its status as a relatively new entity.

LIV Golf has a TV deal with The CW Network in the US, but unlike traditional agreements, revenue is shared rather than paid outright. Reports suggest that this arrangement yielded less than £2.4 million.

Despite these challenges, LIV Golf has begun to expand commercially, securing partnerships with various sponsors. EasyPost became the league’s first corporate sponsor in 2023, with Asprey providing trophies, Corpay handling corporate FX, and JCB partnering with the UK event.

Teams within LIV Golf also generate revenue through merchandise sales and partnerships. Franchises like Ian Poulter, Lee Westwood, and Henrik Stenson’s Majesticks have secured deals with cryptocurrency company OKX, while others have partnered with golf clothing brands like Stuburt.

Overall, LIV Golf’s rapid growth and innovative approach have reshaped the professional golf landscape, setting the stage for an exciting future in the sport.