Liv Golf is not the only big golf tour that loses millions

Golf’s biggest news for last week was economic catnip:

Liv Golf’s international business suffered nearly $ 500 million in losses in 2024.

Half Bil! Accompanied by similar losses in 2023 and its onset costs around 2022, the International Liv wing – approximately half of its operations – has accumulated losses NORTH of $ 1 billion.

The most common question about those stunning numbers – how can the business continue to continue to work? – often meets with: Well, LIV is owned by Saudi Pif, which has a total assets approaching $ 1 trillion. Great photo, this team-team is just a rounding error.

In fact, Liv Golf’s financial supporters I have cope to continue to throw money into the league; They have already tried it. However, the greatest story is the lack of encouraging signs in those spreadsheets. Young players, technique additions and the rotating door of the Liv Host pages have rolled and dipped it deeper into red. Also at work is something we already knew: running a golf tour is really, truly Expensive, and running a global circuit is even more costly. Just ask one of Livi’s competitors.

International Livi finances were made public through the home of the companies, the British Government’s arm seeking financial reporting for all companies registered in the UK. The DP World Tournament (previously known as European Tour) falls into the same category, and records show that it suffered significant losses.

In 2024, the income from the DPWT non-deductible cups were so high that never, its attendance increased and thus TV estimates for its larger tours (Rolex Series). Sponsorship revenues saw a 15% increase and customer income – things such as goods, tickets and hospitality sales – increased by nearly 30%.

Then, how dpwt raised $ 32m losses?

Again, we refer to you in the Liv case study: the extension of the Golf Pro in all the corners of the globe is costly. And Liv has no profit engine that is the Ryder Cup to save it.

It is hardly a discovery that the partial ownership of the DPWT of Ryder cup It is what keeps it in the sea, but it is in those financial documents where we really begin to understand the value of the event. According to the 2024 report, the Ryder Cup is a generator of revenue approximately $ 110 million when held in Europe every four years; This figure reaches approximately one -third of the income led by DPWT whole Annual program with 44 events. Profits by Home Ryder Cups have helped compensate the costs of receiving tournaments on four different continents. So is the wind rainfall from the DPWT strategic alliance with PGA Tour.

As part of that agreement, PGA Tour has sent approximately $ 25 million across the basin (on average) since 2021, mainly to fund DPWT bags, which increased to $ 153 million this year. In return, PGA Tour took an action on European tournament that will increase to 40% by 2030. At a time of major challenges – Covid’s intersection and Liv – PGA Tour lasted a hand in its pond. Two years later, PGA Tour (more than) doubled in its investment, and the DPWT now has a much longer runway to continue strengthening the pro -internationally game.