When viewed in this context, it is little surprise that LIV – which had racked up billions of pounds of losses since its launch in 2022 – was no longer compatible with PIF’s new investment strategy, especially with the vast sums needing to be spent on preparing for the World Cup in just eight years.
“With the 2034 World Cup approaching, Saudi Arabia faces enormous infrastructure and delivery costs,” says Dr Johan Rewilak, an expert in sport management at Loughborough University.
“It is plausible that the government is reallocating capital and reassessing its wider sports portfolio. Geopolitical tensions and rising construction costs may also be accelerating these decisions, shifting spending priorities toward security and essential infrastructure rather than prestige sports assets.”
Some sports appear to be in a better position than others, especially those which have mass appeal among Saudi Arabia’s youthful population.
Last year, Saudi boxing chief Turki Alalshikh insisted that reports of a slowdown in spending on the sport were “100% not true”. In July, Riyadh will host Anthony Joshua’s heavyweight fight against Kristian Prenga, along with the Esports World Cup.
In cricket, the country is reportedly exploring plans for a global T20 cricket competition, although a women’s tournament scheduled for later this year has been postponed due to the war in Iran. Next year Saudi Arabia is due to host the AFC Asian Cup for the first time.
A new, state of the art Formula 1 circuit is also being built near Riyadh.
According to those with knowledge of PIF, the fund will now prioritise sports that already have a fan base in the country (like combat sports) and in which Saudis have a chance of breaking through, with more investment directed towards talent pathways. “People think the PIF has a limitless supply of money, but it’s a misconception”, said one source. “It is an investment fund designed to maximise the quality of life for people in Saudi, and now the need for more selective spending has been accelerated because of the Middle East conflict.”
The BBC has also been told that PIF’s long-term commitment towards Newcastle United remains unchanged, with a major capital investment set to be confirmed in the coming days.
That will no doubt come as a relief to many fans now increasingly concerned about the future backing of their owners.
But the fate of LIV Golf also serves as a warning to all those that had become reliant on Saudi’s sporting spending spree.
They all now know that nothing is guaranteed.
