SerpApi.Org
It has now been almost four months since the Saudi Public Investment Fund announced it was withdrawing its funding for LIV Golf.
Since then, a lot has happened. Ahead of the resumption of the tour with its UK swing on Thursday, the future of LIV Golf is very far from certain.
In the background, Scott O’Neil, the league’s under-pressure CEO, is courting fresh investment from private equity firms, family offices, high net worth individuals and, yes, sovereign wealth funds.
O’Neil needs at least $250m to secure LIV Golf’s future into next season, potentially rising to $350m.
In the meantime, PIF are funding the tour through loans. Not equity, as they have done until now. And that means that incoming investors will have a further financial commitment on top of their initial investment, if indeed it materialises.
The negative press has compounded this week, with news of another lawsuit facing the embattled tour.
LIV being sued by tech partner; lawsuit follows huge damages claim in UK
As has been widely reported, LIV Golf is now being sued for $1.1m by the Canadian technology firm which used to provide LIV’s “Any Shot, Any Time” feature in live television broadcasts.
Mobii Systems says that it has not been paid this year and is now seeking the unpaid amount plus damages and interest. The claim dates back to May, barely a week after PIF announced its decision to pull out of LIV Golf.
Pressure from those to whom it owes money is reportedly among the reasons that LIV has considered filing for Chapter 11 bankruptcy, which would give them some grace to reorganise the business and prevent a creditor run.
LIV has hired several restructuring experts to explore this and other options for the future of the business, which would include a reduced 10-event schedule, more modest prize purses and equity in team franchises for players rather than enormous guaranteed contracts.
The Mobii Systems news comes after it also emerged that several English groups – including World Golf Group and Premier Golf League – are seeking damages of between $210m and $630m from LIV and PIF for allegedly copying the concept for the tour, describing the format as a “bald facsimile” of their initial idea.
Read more:
・Bryson DeChambeau not talking to the media again before LIV Golf event in England
・LIV Golf caught by surprise after the PGA Tour’s latest announcement
・Bryson DeChambeau told what he must now do if he ever wants to come back to the PGA Tour
