Sergio Garcia of the Fireballs GC walks to the sixth green during day three of LIV Golf: Chicago at Bolingbrook Golf Club (Image: Getty Images)
The Saudi Arabia-backed LIV Golf league is facing the potential loss of some of its top stars as contracts near their end and signing bonuses are predicted to be significantly reduced in the upcoming years. The league, which rapidly emerged as a significant force in golf’s power dynamics following its 2022 launch, is entering an interesting period.
Discussions are ongoing for a peace agreement with the PGA Tour, with the aim of mending the rifts caused by the creation of the breakaway circuit. However, the profitability of the league hinges on securing TV deals with major broadcasters.
At present, LIV is aired on The CW in the United States and via the league’s app, but it lacks a deal in key markets such as the UK, where tournaments are streamed on YouTube. Allegedly, negotiations have taken place with FOX and TNT for a US TV deal, but no consensus has been reached so far.
This absence of a major partner is not only impacting the league’s profitability but also its 13 teams. As per The Telegraph, this is directly affecting players, particularly team captains, who were granted equity in their respective teams upon joining the league but are not witnessing any substantial financial benefit due to LIV’s massive losses amid a lack of broadcast and sponsorship revenue.
Golf stars like Bryson DeChambeau, Brooks Koepka and Sergio Garcia, who joined LIV Golf on four-year deals in 2022, could face a significant pay cut when their contracts expire within the next two years. The Saudi Arabia Public Investment Fund, which backs LIV, is reportedly planning to slash spending by up to 12 percent, leading to speculation that new contract offers will be “vastly reduced” compared to the original lucrative deals that lured them away from the PGA Tour.
This raises questions about the financial sustainability of LIV’s team format and whether these top players will stick with the tour or look elsewhere when their current deals lapse. While LIV has offered substantial prize money, the PGA Tour has responded with increased purses at marquee events and enhanced sponsorship opportunities thanks to stronger viewer numbers.
Despite their public praise for LIV, DeChambeau, Koepka, and Garcia may ultimately be swayed by the promise of more lucrative opportunities elsewhere.