The Public Investment Fund (PIF) announced it would withdraw from LIV Golf, ending weeks of speculation and insisting the fund will continue to invest internationally with sport remaining a priority. The statement was clearly intended to reassure partners and the public even as Riyadh steps back from a high-profile project it once framed as the future of golf.
Until recently, few questioned Saudi Arabia’s appetite for big-ticket sports deals. The kingdom’s spending spree has reshaped its sporting profile: marquee signings like Cristiano Ronaldo in the domestic league, a majority takeover of Newcastle United, and extensive sponsorships that widened its footprint across global sport. These moves were presented as part of Crown Prince Mohammed bin Salman’s Vision 2030—an effort to modernise the economy, boost tourism and expand domestic leisure options.
Critics have long argued those investments were also meant to burnish the kingdom’s image amid scrutiny over human rights, not least after the 2018 killing of journalist Jamal Khashoggi. But the more immediate question is whether the era of rapid, conspicuous sports spending is starting to cool.
Reports emerged early this year that PIF had put much of its portfolio under review. A $73bn budget deficit driven by higher state spending and lower oil receipts prompted a shift toward investments expected to deliver sustainable returns. High-profile plans began to change: the 2029 Asian Winter Games were postponed indefinitely and the WTA Finals were not renewed after a three-year deal.
Regional instability and rising defence and infrastructure needs have also influenced priorities. Escalating conflict in the Middle East disrupted exports and increased security spending. In its 2026–2030 strategy PIF emphasised “sustained value creation…and maximizing long-term returns,” a language notable for not highlighting sport. Since then the fund has sold the Saudi club Al-Hilal, cancelled the Saudi Arabia Snooker Masters two years into a planned decade-long arrangement, and reportedly dropped a bid for a 2035 rugby World Cup.
LIV Golf has been among the most visible casualties. PIF said the level of capital required no longer fits the current phase of its investment strategy, citing shifting priorities and broader macro conditions. That assessment aligns with reports of heavy losses at LIV since its 2022 launch and the large sums Saudi Arabia must now ready for infrastructure ahead of the 2034 World Cup.
As sports-management expert Dr Johan Rewilak has noted, the approaching World Cup and rising construction and security costs make it plausible the government is reallocating resources away from prestige assets toward essential infrastructure and defense.
That does not mean all sporting ties are imperilled. Events and disciplines with strong domestic appeal appear safer: combat sports continue to attract deals, with boxing and esports dates still scheduled in Riyadh; cricket fixtures including women’s tournaments and plans for a global T20 competition remain on the calendar; the AFC Asian Cup is due in Saudi Arabia next year, and a new Formula 1 circuit is under construction. The BBC has also been told PIF’s long-term backing of Newcastle United is unchanged, with further investment expected.
The withdrawal from LIV is a stark reminder to organisations and rights holders that partnerships dependent on a single deep-pocketed patron can be vulnerable to changing economic and geopolitical calculations. For those who relied on Saudi capital, the message is clear: commitment can be reprioritised, and nothing is guaranteed.
