PIF, the financial arm behind LIV Golf, has decided to trim its overseas investment, a recent report confirmed. PIF Governor, Yasir Al-Rumayyan revealed at the Future Investment Initiative conference on Tuesday in Riyadh, that the $930B Saudi Sovereign Fund will look to invest more in the domestic arena. A sharp turn from their earlier strategy, where 30% of their total investment was in overseas markets. 

“Now our target is to bring it down to a range between 18 to 20 per cent,” a Financial Times Report quoted the business mogul as saying. PIF, aside from being the financial arm behind LIV Golf, has stakes in the top-tier English soccer club, Newcastle United. Al-Rumayyan emphasized that PIF’s valuation is growing. Hence a lesser percentage of investment will be a significant amount. But it’s unlikely that PIF will spend jaw-dropping money on golfers.

Per Ahmed Al Omran of Financial Times, the strategy PIF has taken over the years is going through a shift. Another FT report from August revealed that the Saudi Sovereign Fund is putting more conditions before funding a project. The overarching theme is that they are more focused on developing the Saudi economy.

This will, in turn, affect how much leeway the next LIV CEO will have in terms of splurging money on golfers. Last December, Greg Norman spent almost half a billion on Jon Rahm. That kind of mega business transaction seems unlikely this year. Moreover, the first batch of LIV golfers are either nearing the end of their contracts or will reach that end in one or two years. 

The perception of PIF as a ‘cash cow’ is slowly changing in the business world. It should also be noted that LIV Golf is undergoing an overhaul at the top. PIF’s decision appears to carry more weight given the current state of the merger between PIF, the PGA Tour, and the DP World Tour. 

What shape will LIV Golf take in the coming years?

It’s a question everyone has, including LIV Golf’s fervent supporters. Whether LIV Golf wants to lean more into its team aspect or not, is unclear at the moment. However, from the PIF-funded side’s current hirings, and open positions at the C-Suite level, it’s clear that LIV wants to finalize a few things and surge ahead. 

Since the Sports Business Journal report of LIV looking for a new CEO, there were rumors that Greg Norman will be axed next year. The Great White Shark, in a Sports Illustrated interview, admitted that his contract expires in 2025. Meanwhile, PIF has already kickstarted the hunt for a new face.

They reached out to Big 12 Conference CEO, Brett Yormark, who refused. The call didn’t last beyond a few minutes, apparently. Nevertheless, it also indicates that LIV Golf is looking at established names within the Sports world. Names that command more authority and will enjoy a rapport across the PGA Tour and LIV Golf. Currently, Norman’s relationship with Jay Monahan & Co. is as good as Michael Jordan and Isiah Thomas.

Interestingly, less than a month ago, Yasir Al-Rumayyan teed up at the Alfred Dunhill Links Championship with Jay Monahan. Guy Kinnings, the DP World Tour CEO was also present at the venue. The three appeared to share some lighthearted moments on the greens. There has, however, been no certain update on the future of the merger. 

A DP World (the sponsor, not the Tour) executive hoped a breakthrough might come as early as this December. It’s still a guessing game but. Amid all this, PIF’s downsizing overseas investment signals there won’t be any more high-profile ‘poaching’ like last year.