Govt backing $45m golf investment despite reports Saudis are pulling LIV funding
The state government is confident North Adelaide will still get its redeveloped golf course despite reports that Saudi Arabia’s Public Investment Fund will drop LIV Golf after this season.
Premier Peter Malinauskas has addressed news that LIV Golf plans to tell players and staff this week that Saudi Arabia’s Public Investment Fund (PIF) will stop funding the circuit after this season.
The Wall Street Journal reported on Wednesday (Thursday AEST) that LIV Golf would inform players and staff by Thursday, citing people close to the tournament, but LIV has not immediately responded when asked by Reuters for comment.
Adelaide first hosted the sporting event in 2023, with the state government investing heavily in its future including starting preliminary works on a $45 million North Adelaide Golf Course redevelopment this week in its bid to grow the event in the state.
Malinauskas said he had not received official correspondence from LIV to verify its loss of funding and that initial works on the golf course development would continue in the meantime.
“Clearly there are reports of challenges and it’s hard to know exactly what is going on. We continue to monitor the situation closely and naturally we’re interested in it, and if the circumstances change we’ll turn our minds to what that looks like,” Malinauskas said.
“The investment that we’re making into the North Adelaide Golf Course is about ultimately a facility for community use. It makes a lot of sense economically as it stands but it’s aided of course by hosting a major event.
“We believe there’s a strong case for making an investment into a public asset for the people of our state particularly considering that it will be a draw card for tourists in the heart of our city.”
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But the latest LIV report has renewed lobbying to scrap the redevelopment, with Liberal leader Ashton Hurn saying it would be unjustified without major tournament backing.
“The fact that the Saudis have already pumped around $8.5 billion into this program does mean that without that funding it’s hard to see where they will find another multi-billion-dollar backer,” Hurn said.
“If LIV Golf is to fall over, then it is time for Labor to stop the diggers and keep that $45 million in the bank for all South Australians.
“When we’ve got a situation where debt is spiralling, where emergency departments right across regional South Australia are closed, it’s hard to see a reason why this can possibly be justified.”
Greens Leader Robert Simms was also backing calls for the state government to immediately halt work saying it was “time for common sense to prevail”.
“With reports that the Saudi Sovereign Wealth Fund are now withdrawing support for LIV Golf, it’s clear that the 2028 Adelaide tour is not likely to proceed,” Simms said.
“It’s simply not tenable for the Premier to push ahead with this golf course redevelopment. The whole business case has collapsed.
“He needs to immediately halt all works, save the trees and spend the $45 million on other priorities.”
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Earlier this week, demonstrators held a “Stop the Chop” vigil for 585 mature age trees marked for removal in Possum Park / Pirltawardli (Park 1).
Lord Mayor of Adelaide Jane Lomax-Smith said Adelaide Council would be prepared to resume control of North Adelaide Golf Course should redevelopment plans falter.
“With so little information available, it’s hard to know if this is just a slice that’s landed in the rough or something more consequential,” Lomax-Smith said.
“Whatever occurs, the Council is always ready to resume its care and control of the golf course and our Park Lands.”
Adelaide City Councillor Keiran Snape called the development a “$45 million white elephant”.
“I’m calling on the Premier to do the right thing, something that thousands of South Australians are calling for, and stop the destruction of these treasured Park Lands and stop the removal of the hundreds of trees involved, which are a vital habitat for native wildlife,” Snape said.
“In this instance there is no shame in an about face, in fact he would be praised for doing so. Today I am also calling for the care and control of this section of our Park Lands, to be returned to the stewardship of the City of Adelaide, its guardians for over 175 years.”
The WSJ report comes two weeks after sources close to the matter told Reuters that LIV’s 2026 season would proceed as scheduled with the full backing of the PIF, pushing back against reports that the circuit was facing a funding crisis.
LIV Golf chief executive Scott O’Neil told players in an email seen by Reuters that the season would continue “exactly as planned, uninterrupted and at full throttle”.
LIV Golf has suffered years of financial losses, with financial papers filed in the United Kingdom in October revealing a US$462 million ($AUD704m) total loss for the year ending December 31, 2024 – up from a $US396m ($AU604m) loss in 2023.
However, Australia led 2024 revenue in the nine geographic areas LIV operated, with the Adelaide event bringing in about $US26 million for the company, followed by $10 million from Hong Kong.
– with AAP
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