LIV Golf has lead investor and planning ahead for another season

LIV Golf CEO Scott O’Neil announced an agreement Wednesday with a lead investor that would allow the rival league to forge ahead without the backing of Saudi funding while making players major equity holders.

“So many of them came because this was a good opportunity for them to make some money, and this second bite at the apple is equity instead of cash,” O’Neil said at a news conference at Trump Bedminster, site of this week’s LIV Golf New York event.

O’Neil was short on details, starting with the identity of the investor and how much money was involved. He said the lead investor “has signed a term sheet approved by our board, which will carry and fund LIV going forward.”

“It’s very good news for all of us,” O’Neil said.

O’Neil said LIV is getting “strong interest” from more than a dozen other parties who would be minority investors as the league tries to survive.

“We don’t need them, but we have the opportunity to do it,” he said of other investors.

LIV Golf New York is the penultimate individual event in a season that has been marked by upheaval, particularly the stunning announcement in March that the Public Investment Fund of Saudi Arabia — the financial muscle of LIV since it began — is withdrawing funding after 2026.

One tournament in New Orleans already has been scrapped, and there are serious doubts the season-ending team event in Michigan on Aug. 27-30 will be played, particularly after reports the tournament has not even started preparing for it.

“We have not made any final formal decisions and hope to in the coming weeks,” O’Neil said.

LIV Golf, which launched in 2022, has spent more than $5 billion on the league. That includes some of the nine-figure bonuses to lure top players like Brooks Koepka, Dustin Johnson, Bryson DeChambeau, Jon Rahm and Phil Mickelson.

Prize funds were $20 million, with an additional $5 million for the team component.

But it all began to fall apart earlier this year. Koepka was let out of his contract and returned to the PGA Tour, and Patrick Reed chose not to renew his deal. He is leading the European tour points list and will be eligible to return to the PGA Tour next year.

Lucas Herbert, who has won twice on LIV Golf this year, said Tuesday his management has been in touch with PGA Tour officials.

“If LIV were to go away and you’ve got nowhere to play, I think ultimately you need somewhere to play as a professional golfer. So we’re just doing due diligence,” Herbert said.

O’Neil met with team captains on Tuesday, and DeChambeau led a player-only meeting later in the afternoon, though none of the players shared details.

O’Neil said he expected to finalize terms with the lead investor in the next few weeks with the goal of getting it done in September. The plan for what is being referred to as “LIV Golf 2.0” is for 10 team events each year, five of them in the United States and five others around the world.

It also wants to stage events leading into the majors and having a schedule that allows its player to compete on other circuits. Rahm and Tyrrell Hatton already play on the European tour. The PGA Tour still has a one-year ban on anyone competing on LIV.

The $20 million prize money — now matched by the PGA Tour at its signature events — will have to be substantially less going forward. Even with a lead investor, questions remain whether the biggest names will stick around.

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“I think we have enough support from enough players, and we have such an interesting format and global format, I think we’ll do quite well in getting the right stars for this game,” O’Neil said.

Among speculation is whether LIV would file for bankruptcy as it sought a new structure.

“When you’re in a situation that is a bit fluid, where there’s a bit of uncertainty, where there’s some challenges and maybe some surprises here or there around the corner, we want to make sure that we are giving ourselves the best opportunity to do what’s best for this organization to carry forward,” O’Neil said. “We’ll consider the best options at that time. That’s not a decision we have to make, and we’ll continue to do what’s best.”

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AP golf: https://apnews.com/hub/golf