LIV Golf’s 2022 revenue ‘virtually zero’ according to attorneys after spending $784 million in the first season
LIV Golf, a new professional golf league, had a major setback in 2022. According to federal court filings, the circuit being supported by Saudi Arabia's Public Investment Fund is making essentially no money. Presently, the league is gearing up to begin its second season in Mexico later in February 2023.
In a motion submitted on Monday to the US District Court for Northern California, counsel for the new league admitted as much.
The tour's motion, which aims to interfere with its contract with players, was denied by US District Court Judge Beth Labson Freeman. The attorneys wrote in Monday's motion:
"The Tour's motion to amend should be denied because the amendment would be futile, would cause unfair prejudice, was unduly delayed, and is obviously intended to inappropriately delay the case and resolution of Plaintiffs' antitrust claims."
To hear arguments from both sides, Freeman has arranged a case management session for February 24.
Liv Golf faced a revenue crisis in 2022
Atul Khosla, the former COO and president of LIV Golf, revealed to ESPN in October that the Public Investment Fund invested about $784 million to finance the circuit's inaugural season. This amount covers employee wages, tournament build-outs, and production costs for live-streaming LIV events on social media and its official website.
That sum, according to Khosla, who left in December, did not include guaranteed, multiyear contracts for players, which could make up at least one-third of it. According to several published sources, LIV spent up to $200 million to get Phil Mickelson, a six-time major champion, Dustin Johnson, and Bryson DeChambeau.
The league also, according to the report, spent at least $100 million to acquire reigning Open Championship champion, Cameron Smith. Officials from LIV have been reluctant to disclose the specifics of the players' contracts.
The Public Investment Fund and Al-Rumayyan are believed to have violated discovery and deposition deadlines. The PGA Tour's attorneys have asked for a conference meeting with Freeman to examine whether those dates, as well as the January 2024 trial date, should be postponed.
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Matt Jones and Peter Uihlein, plaintiffs in the federal antitrust complaint alongside DeChambeau, claim that the Tour's claimed antitrust actions have harmed their careers. Jones, Uihlein, and other players who participated in the tournaments without receiving conflicting event releases were suspended by PGA Tour commissioner Jay Monahan.
LIV Golf's 2023 season
El Camaleon Golf Course in Mayakoba, Mexico, will host the second LIV Golf season from February 24 to February 26, 2023. This season will see 14 tournaments, including 12 four-man teams playing in individual and team events and 54-hole tournaments.
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The CW network and streaming app will carry their live competitions, starting on January 19, thanks to a multiyear broadcast television and streaming arrangement.
The deal's financial details were not made public. The deal is a revenue-sharing one, according to sources who spoke to ESPN, and will continue to cover production costs as it did during its initial season in 2022. LIV Golf will not get rights fees from the CW network.