LIV Golf CEO Scott O’Neil was a guest on CNBC's Halftime Report this week, and host Scott Wapner was undoubtedly direct about the potential future (or lack thereof) of the organization.
“There are many who believe that LIV’s days are numbered. That once the Saudi money truly runs out that bankruptcy is the most likely option. What makes you think that you can save this league?” Wapner asked.
“Well, I could tell you, one thing is that I wouldn't rather be anywhere else with any group of players, with any group of executives or any group advisors in the world right now,” O’Neil answered. “I think we have a very, very special opportunity to create tremendous value.”
Then, O’Neil used the words "different" and "disciplined" to describe the approach that LIV has to take in the future, mainly because they are about to lose the backing of the Saudi Public Investment Fund (PIF).
The LIV executive is currently faced with trying to raise $350 million so that they can continue into 2027. O’Neil has brought in investment banker types because, really, you have to go where the money is. The product is a sports marketing play and as such, it’s probably a little harder to evaluate in terms of the numbers compared to other sports, because LIV has had a hard time getting noticed by fans, at least in the United States.
Viewership and attendance have been horrible. They have typically peaked at less than half a million viewers, while the PGA Tour is in the multiple millions. LIV needs both sneakers on the ground and eyeballs on their tournaments, both of which have been a challenge in most, but not all, locations.
Compare that to something like the WM Phoenix Open, which claims a high of 750,000 on-site for the week, with a single-day record in excess of 200,000. The WM Phoenix Open has boasted that they have as many as 4.9 million viewers on traditional TV. Traditional. Not counting online, cable, streaming, or ESPN+. TGL has bigger audiences than LIV. Season 2’s TGL final featuring Tiger Woods drew a million viewers.
Meanwhile LIV struggles to get anyone watching on TV. Their highest rating was just over 500,000. For LIV, anything they do might be an improvement.
Fortunately for them, O’Neil is not a novice to the world of sports and entertainment. He was head of Merlin Entertainments, which owns Legoland, Madame Tussaud’s, and The Eye attractions in London, Sydney, and Blackpool. The company also owns a variety of theme parks.
Prior to that, O’Neil was with Harris Blitzer, which owns the Washington Commanders, the Philadelphia 76ers, the New Jersey Devils, the future Philadelphia WNBA team, and holds minor stakes in other sports franchises.
“I think what we’ve seen in terms of the increase of values of sports teams over the last 30 years since I've been in this business is absolutely incredible,” O’Neil replied, making it sound like there was great value to be unlocked with LIV.
He suggested there was an incredible amount of “disposable income knocking on the door.”
O’Neil pointed to Formula 1, then to the NBA, which just announced that there would be some new franchises available for between seven and nine billion dollars. Billion. You read that right.
He then pointed to some of the stars who are still with the upstart league, like Bryson DeChambeau, Jon Rahm, Dustin Johnson, and Cam Smith. DeChambeau is a legitimate attraction for them.
Wapner, never afraid to poke a bear, said he’d heard one report that LIV might not have enough money to finish the season, that they would pull their money before the conclusion of this year’s events.
O’Neil didn’t outright deny that, but he did say that PIF had been a terrific partner so far.
“They've been very public about funding us through the season, so we are full steam ahead, the players are locked in, the management team is locked in,” O’Neil insisted.
O’Neil is currently in New York searching for new investors for LIV going forward. He said that he is getting a warm reception from potential investors and from those who represent investors.
Wapner ended by asking if O’Neil could guarantee that he had funding for the rest of the season. O’Neil replied that he could guarantee a “heck of a return if you come investing in this business.”
Again, not a definite answer.
However, O’Neil did say that he had already been through five meetings with potential investor groups on Tuesday morning.
“I've got 18 more meetings this week and about the same next week,” O’Neil added.
Wapner pointed out that the clock was definitely ticking as far as finding sponsors and investors for the future, and he wondered how long they would continue in their search to raise $350 million.
“While we have incredible business momentum, what we don't have is a lot of time, so we're very urgently out there talking to those who are interested,” he said, adding that they know they have to be fully subscribed by the end of the summer.
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