The Saudi sovereign wealth fund's decision to stop funding LIV Golf after this season has cast doubt on the kingdom's broader sports ambitions. The breakaway golf league, which lured stars like Jon Rahm with massive paychecks, was a flagship of the country's strategy to become a global sports hub. Now, as the Public Investment Fund (PIF) pulls the plug, questions arise about the sustainability of its investments in football, Formula 1, boxing, and other high-profile events.
In a statement, PIF insisted it remains committed to sports as a priority sector, but the move signals a strategic shift. Saudi Arabia has spent tens of billions on everything from Premier League club Newcastle United to soccer superstar Cristiano Ronaldo. Critics have long accused the kingdom of using sports to distract from human rights abuses, including the 2018 murder of journalist Jamal Khashoggi.
However, a growing budget deficit—$73 billion last year—and falling oil revenues are forcing a reassessment. Reports suggest that projects are being reviewed for profitability and long-term viability. The 2029 Asian Winter Games in Saudi Arabia was recently postponed, fueling speculation that the party may be winding down. While some sports with strong commercial returns may continue to attract Saudi money, others, like LIV Golf, could be casualties of the new fiscal reality.