Golf analyst not surprised by reports of huge losses for LIV Golf

Reports that LIV Golf's UK entity has suffered further huge financial losses have come as no surprise to Golf Channel pundit Brandel Chamblee.

The Financial Times have claimed the UK arm of the Saudi-backed breakaway league were close to $500 million in the red for 2024 according to their latest accounts.

That would mean the total losses for LIV Golf in the UK have surpassed $1 billion since the tour was initiated in 2021.

The Financial Times report stated: "Saudi-owned LIV Golf Ltd’s net losses swelled to $461.8 million in 2024 from $395 million in 2023 and $243 million in the 18 months to the end of 2022, according to accounts filed at UK Companies House this week.

"The accounts flagged that there was a “material uncertainty” that might cast significant doubt over the LIV UK entity’s ability to continue as a going concern.

"However, the directors report cites a commitment from the Public Investment Fund of Saudi Arabia (PIF) that would give LIV UK access to the finance required to meet its liabilities.

"The latest figures mean that the UK entity has lost more than $1.1 billion since it was established in 2021."

Chamblee has been an outspoken critic of LIV Golf since its inception, and the former PGA Tour professional is adamant that the losses will continue to mount up unless they change their business model.

LIV Golf is bankrolled by Saudi Arabia's Public Investment Fund (PIF), which is believed to be making cutbacks to curtail the losses.

It has been reported that players will no longer receive eye-watering signing-on fees, such as the apparent $350m that Jon Rahm was paid for jumping ship at the end of 2023.

But Chamblee feels that LIV Golf will have to make further widespread changes if they are to stem the flow.

In a post on his X account, Chamblee wrote: "In fairness, it’s not unusual for startups to lose money in the first few years. Tesla didn’t record its first ever quarterly profit until 2013, a decade after its founding. 

But, most startups correct mistakes that led to those losses and make adjustments and improvements on the way to financial success. 

"LIV seems convinced that they have what golf is missing, and have not made adjustments in their model, despite compelling evidence that their model isn’t working. 

"As long as the PGA Tour doesn’t alienate the core golfer, I don’t see them leaving for LIV."