People familiar with the plans told CNBC that LIV Golf is preparing to take its updated business plan and pitch to investors on the road as early as Thursday in a bid to raise new funds to stay open after this season.
The upstart golf circuit plans to raise between $250 million and $350 million from potential investors, said the people, who requested anonymity due to the sensitivity of the discussions. The capital raising plan is being brought to market by blue-chip investment bank Ducera Partners, which is advising LIV Golf.
Part of the proposal, seen by CNBC, is targeted at accredited investors and aims to “completely re-capitalize LIV and drive its path to profitability.”
The move comes weeks after Saudi Arabia’s Public Investment Fund (PIF) announced it would stop funding LIV’s operations after the 2026 season. PIF Chairman Yasir Al-Rumayan also resigned as chairman of LIV Golf, which he founded with former professional golfer Greg Norman in 2022.
Last month, the league announced the creation of a new independent board of directors led by capital markets and restructuring veterans Gene Davis of Pirinate Consulting Group and John Zinman of JZ Advisors.
The new funding paves the way for the league’s ownership to be controlled by new investors as well as the league’s players and LIV management.
PIFが支援を打ち切ったことで、LIVは資金調達に向けてさらに困難な道を歩むことになるかもしれない。 Multiple reports over the past few months have suggested that PIF’s investment will reach more than $5 billion over the lifecycle of its LIV involvement, but it has not yet resulted in a profitable golf league operation.
Since its founding, LIV has attracted headlines for the huge contracts awarded to top talent to lure top talent away from the established PGA Tour.この巨額支出は、世界最大の政府系ファンドの莫大な資金を支援することで部分的に正当化された。
With PIF funding no longer the cornerstone of LIV’s future, questions have arisen about how LIV CEO Scott O’Neill will restructure business operations without billions of dollars in capital.リーグには数億ドルの選手契約義務があり、今後2年間で黒字化するという目標を掲げている。
Earlier this week, Bloomberg News reported that LIV has begun considering bankruptcy as a potential tool to reset the stage of its business operations toward profitability.破産申請は、不動産や雇用契約などの契約上の義務を無効にする手段として他の企業でも利用されている。
The possibility of bankruptcy has reportedly led some players within the LIV ranks to seek alternative avenues to continue their professional playing careers. Still, there have been a number of prominent LIV players who have recently expressed interest in continuing to operate the LIV business as a going concern.
While speaking to the press at last week’s PGA Championship tournament at Aronimink Golf Club outside Philadelphia, LIV golfer and Region XIII team captain Jon Rahm said he believes in LIV’s commitment and ability to make good plans for the future.
“Whatever they come up with, I believe it will require some concessions on our part to change the business plan,” Rahm, one of LIV’s highest-paid athletes, said during a press conference at LIV Golf’s Virginia Tournament at Trump National Golf Club in Potomac Falls, Virginia.
LIV の最大の価値提案の 1 つは、チーム ゴルフを目立つように配置していることです。 In the early months after the league’s inception, insiders touted team golf as a potential major growth engine for the sport, capitalizing on the team aspect of the league with pitches aimed at moving PGA Tour players to newly established circuits.
The new funding plan seeks to convince potential investors that team-based fandom and an experienced general manager will be key drivers of its business plans in the coming months.
According to an investor pitch viewed by CNBC, LIV’s proposed calendar for next season will target a total of 10 team events around the world, aiming to replicate what it has achieved with well-attended events in countries such as South Africa and Australia. The pitch also cited year-over-year growth in sponsorships, partnerships, ticket sales, retail and YouTube viewership.
LIV が新規投資家への取り組みを開始する際に問題なく得られるものの 1 つは、メディアの注目です。 With reports of the ongoing battle between LIV and the PGA Tour, it appears the battle lines are being drawn between fans who support the historic PGA Tour and those who vocally support LIV and its format.
Meanwhile, the golf world is also waiting for a big update on future operations from the PGA Tour, with a more substantive update expected from CEO Brian Rolup in mid-to-late June.
