Saudi-backed LIV Golf preparing for bankruptcy filing

Settlement offers sent out to players after Saudi Arabia cuts its financial support for the upstart golf tour Supporters gather ahead of the start on the first day of the LIV Golf South Africa tournament at The Club in Johannesburg's Steyn City, on 19 March 2026 (Phill Magakoe/AFP) Published date: 31 August 2026 20:02 BST | Last update: 5 sec ago Saudi Arabian-backed LIV Golf is prepping for a bankruptcy filing as soon as next week, as the kingdom’s sovereign wealth fund refuses to provide additional funding to the golf challenger. LIV Golf has sent out settlement offers to players who were promised millions in guaranteed payouts, which now stand at just a few cents on the dollar, the Financial Times reported on Monday. Saudi Arabia signaled in the spring that it would withdraw its multibillion-dollar investment in LIV Golf. LIV Golf’s chairman Yasir al-Rumayyan, who is also governor of Saudi Arabia’s Public Investment Fund (PIF), was expected to resign. PIF’s bet on LIV Golf to rival the PGA Tour was one in a series of investments that were made in a bid to bolster the kingdom’s involvement in sports and entertainment, as it pushes to diversify its economy away from energy. But the tour had made losses in excess of $1.1bn outside of the US, and likely several billions in the US too, since it was established. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters Jon Rahm, Bryson DeChambeau, Phil Mickelson and Cameron Smith are among the golfers who compete on the tour. Even before the US-Israeli war on Iran, high-flying Saudi projects were being cancelled or massively scaled down. The kingdom’s finance minister, Mohammed al-Jadaan, said in December that the government had “no ego” preventing it from reassessing projects. Earlier this year, Saudi Arabia suspended construction of the Mukaab, a giant cube-shaped structure set to be built in downtown Riyadh. The kingdom also shelved plans to build a desert ski resort and a large dam for an artificial lake. LIV is trying to spin off a “2.0” version as part of a pre-packaged bankruptcy deal. The deal would see golfing stars opt for equity stakes and other forms of financial compensation as part of that deal. Saudi Arabia and other Gulf states have been hit by the US-Israeli war on Iran, despite rising energy prices. The Gulf states have been trying to diversify their economies away from solely relying on oil and gas revenue. Bloomberg reported on Monday that Saudi Arabia is in early talks to raise at least $8bn in fresh loans as the war on Iran bites and the kingdom looks to continue investing in non-oil activity. Middle East Eye delivers independent and unrivalled coverage and analysis of the Middle East, North Africa and beyond. To learn more about republishing this content and the associated fees, please fill out this form. More about MEE can be found here.