LIV Golf seeks huge sum to secure tournament’s Adelaide future
LIV Golf wants new investment of more than $350 million to ensure its future, adamant the breakaway circuit could turn a profit after three years.
LIV Golf is seeking at least $350 million in fresh investment and plans to cut four tournaments to ensure its future beyond this year.
LIV’s Australian tournament in Adelaide appears safe should the new investment be secured by a drive currently underway by leaders of the breakaway league.
A confidential business plan seen by AAP proposes a 10-tournament season from next year, down from 14 events this year.
The plan seeks investment of between $US250m ($A350m) and $US350m ($A490m) and maintains such funding would drive a “path to profitability after three years”.
Investment bank Ducera Partners has started presenting the plan to potential backers, a source told AAP.
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LIV golfers including Australia’s Cam Smith have been briefed about the investment push and responded favourably, the source said.
LIV was weighing significant early interest in the investment plan, the source said, without detailing specifics.
LIV’s future beyond this year has been uncertain since its backers, Saudi Arabia’s Public Investment Fund, pulled funding from next year.
The fund, which has spent more than $US5 billion on LIV since its launch four years ago, said last month investment in the league no longer fitted its investment strategy.
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That decision has forced LIV hierarchy to scramble for fresh investment to ensure the league continues next year.
The new business plan includes a proposal to give players equity stakes in the league – stars such as Smith, Bryson DeChambeau and Jon Rahm could then take a share of control in LIV.
LIV management could also take equity stakes alongside players and new investors, according to the plan.
A LIV Golf spokesperson confirmed details included in the investment plan.
“LIV Golf is firmly focused on securing a transaction that positions the organisation for the long term,” the spokesperson said in a statement.
“In the coming days, we will be sharing the framework of our commercially rigorous, go-forward business plan with prospective capital partners.
“With strong momentum on the course, committed support through the 2026 season, and a clear plan to raise capital, leadership is engaged in identifying the right long-term strategic partners who believe in our mission to grow the game of golf worldwide.
“As these conversations progress, the company expects to gain further clarity around the structure and timing of a potential transaction.”
LIV Golf’s next tournament will be staged in South Korea from May 28. Six tournaments remain to played this year, the last in late August.
-with AAP
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