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The inner workings of LIV Golf’s business model are a lot bleaker than what the league is boasting publicly. Golf växer denna fredag fram som ett av de ämnen som drar till sig uppmärksamheten i Sweden.

Fakta

• The inner workings of LIV Golf’s business model are a lot bleaker than what the league is boasting publicly.
• Donald Trump has supported the reintroduction of LIV Golf players onto the PGA Tour.
• ‘I do believe all of the golfers should be playing’.
• Meanwhile, the 2023 Open champion, Brian Harman, said golfers who left the PGA Tour for LIV should face consequences if they want to return.
• PGA Tour loyalists were angered when 11 golfers, including the six-time major-winner Phil Mickelson, filed an anti-trust lawsuit against the Tour in 2022 challenging their suspensions by the Tour after they signed big-money contracts with LIV when it was founded in 2021.

Vad vi vet

I detalj, Donald Trump has supported the reintroduction of LIV Golf players onto the PGA Tour.

Konkret, ‘I do believe all of the golfers should be playing’.

Dessutom Meanwhile, the 2023 Open champion, Brian Harman, said golfers who left the PGA Tour for LIV should face consequences if they want to return.

Värt att notera är att PGA Tour loyalists were angered when 11 golfers, including the six-time major-winner Phil Mickelson, filed an anti-trust lawsuit against the Tour in 2022 challenging their suspensions by the Tour after they signed big-money contracts with LIV when it was founded in 2021.

I detta läge the Saudi Public Investment Fund is out, which means LIV Golf is on the market.

Siffrorna

“LIV is so far from cash flow break-even,” said one investor, who currently holds a stake in an F1 team. “The math is never going to work.

“I can’t imagine they’re worth more than $30 million,” said one prominent investor, with first-hand experience in selling team franchises and who has insight in LIV’s negotiations. “Those are financial metrics that, without Saudi support, aren’t there.

“I would think that the fans want everyone to be playing together and, you know, time heals all wounds,” the 39-year-old American said, although he noted there was “still some sentiment out here, especially with all the lawsuit stuff.

Värt att notera är att PIF announced Thursday that it is pulling its investment in LIV at the end of the 2026 season; an event scheduled for New Orleans this summer was postponed on Monday, with no new date set; and PIF chairman Yasir Al-Rumayyan stepped down from the league’s board of directors.

Vad som sägs

“The league is in free fall,” says one long-time American sports investor, who has direct knowledge of LIV’s efforts.

“A process that is successful involving team sales evolves as a result of the strength of the underlying business,” the same investor said.

“There are always opportunistic investors who look for a chance to pick up assets for pennies on the dollar,” says another investor. “Whether we are at that juncture at this point, time will tell.

Bakgrunden

Värt att notera är att after years of nine-figure signing bonuses and eight-figure purses, LIV Golf faces a deeply uncertain future as a business.

I detta läge LIV Golf was given eight days to respond to The Athletic’s questions about its business model, but representatives ultimately declined to answer.

I detalj, one investor floated the possibility of LIV becoming a four-event series, and fitting more seamlessly into the golf ecosystem that way, continuing successful events like LIV South Africa or LIV Adelaide.

Konkret, Al-Rumayyan and Greg Norman, the co-founders, are now both out, and it’s on CEO Scott O’Neil to devise and execute plan B: LIV is actively seeking private investors and sales of its 13 teams.

Dessutom since first reporting on April 15 that the PIF was on its way out, The Athletic has had conversations with eight sports business heavyweights — from private equity executives to senior-ranking sports investment bankers and team owners

Sammanfattning

• The Saudi Public Investment Fund is out, which means LIV Golf is on the market.
• After years of nine-figure signing bonuses and eight-figure purses, LIV Golf faces a deeply uncertain future as a business.
• One investor floated the possibility of LIV becoming a four-event series, and fitting more seamlessly into the golf ecosystem that way, continuing successful events like LIV South Africa or LIV Adelaide.
• Snabbt växande sökningar: Saudiarabien drar sig ur LIV: ”Dödsstöten”, Efter LIV-beskedet: R&A tvingas till ändring, Bryter ihop i tv – efter skulderna, Dormy ny titelpartner till klassisk juniortävling – Bogeys & Birdies Junior Cup.