When the PGA Tour signed a deal to compete with LIV’s ever-growing success and popularity, it never knew that the deal would cost it in the long run. LIV Golf, backed by Saudi Arabia’s PIF, arrived in 2022 as the PGA Tour’s first existential threat. It attracted major names, including Phil Mickelson, Bryson DeChambeau, Brooks Koepka, and later Jon Rahm. This led to a gradual decrease in TV viewership.

It was not just the players’ movement that posed a threat. The rebel league had challenged the Tour’s entire economic model. It offered massive signing bonuses, a much more relaxed schedule, and far better purses. In response, the PGA Tour introduced Signature Events with $20 million purses.

The result was a clear financial warning, as LIV Golf had millions to burn, thanks to the PIF. As the Financial Times reported, tax filings showed a massive $60 million loss on $1.8 billion in revenue for the PGA Tour in 2023 itself. Following years of additional cuts, including the cancellation of the Hawaiian tournaments and job cuts at its North Florida headquarters.

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Facing mounting losses, the PGA Tour created PGA Tour Enterprises in January 2024 as a for-profit lifeline. Strategic Sports Group committed up to $3 billion for a 12% stake in the firm and has already invested $1.5 billion.

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Neither SSG nor the PGA Tour revealed the terms of the deal, but it was clear that SSG was here to stay. It was not looking for a quick buyout at a good enough profit, but to be a source of investment. But the equity grants to 200 golfers initially masked a deeper problem: SSG’s control.

“A person familiar with the agreement says that even though it holds only a minority stake in Enterprises, SSG has secured annual management fees as well as so-called ‘negative consent rights’ that give it effective control of the tour,” Financial Times reported.

While the PGA Tour gained capital immediately, it lost institutional independence.

The PGA Tour may now regret losing that independence, as LIV Golf no longer poses a threat. It seemed a durable rival back when it started. The LIV Golf Adelaide and LIV Golf South Africa events this year showed some promise, too. But all that changed in April when PIF announced it would withdraw funding for the league after 2026.

Just like that, LIV Golf ran out of funding and had very little time to secure a new one. With a history of significant losses and poor fan response all these years, finding new investors proved difficult, though CEO Scott O’Neil recently announced a new lead investor to keep the league alive next year. However, there’s still a lot of uncertainty, especially after rumors of Jon Rahm leaving the league after this season.

With LIV Golf’s financial future now uncertain, the PGA Tour may question whether giving up some control was worth the investment. What once looked like a necessary response to a powerful rival could prove to be an expensive long-term decision.