Saudi Arabia’s Public Investment Fund Cuts Back: LIV Golf Collapse Signals Wider Pullback

Saudi Arabia’s Investment Blitz Loses Steam

For years, Saudi Arabia’s Public Investment Fund (PIF) appeared unstoppable, snapping up high-profile Western sports and entertainment assets with seemingly limitless capital. Golf, soccer, boxing, professional wrestling, and even video games—both esports and large-scale development—fell under its golden umbrella. But recent months have exposed cracks in the strategy. This week, the most visible casualty emerged: LIV Golf, the breakaway golf tour bankrolled by the PIF since its 2019 launch, has collapsed. The gaming industry may be next.

LIV Golf’s Fall: A Symptom of Broader Retreat

On the latest Aftermath Hours podcast, analysts dissected Saudi Arabia’s sudden pullback from global investments. The PIF’s divestment from LIV Golf marks a turning point, following a pattern of reduced enthusiasm for other high-profile projects.

Luke highlighted the PIF’s struggles in European football, where it invested heavily in Newcastle United. Despite pumping significant funds into the club, Newcastle has failed to achieve elite status. In the past 6–12 months, the PIF has publicly distanced itself from the project, not by selling the club but by withdrawing support. The investment, once seen as a prestige play, is now viewed as a misstep.

“They had aspirations of making Newcastle one of the best teams in England,” Luke noted. “Newcastle have improved, but they haven’t become an elite club like the owners would’ve hoped. It felt like the investment was a poor one that they didn’t fully understand.”

Is the Gaming Industry Next?

Early reports suggest Saudi Arabia’s gaming investments may face similar scrutiny. The PIF has poured money into gaming studios and esports organizations, but its financial flexibility appears to be waning. Industry insiders warn that the fund’s reduced appetite for risk could trigger a broader retreat from the sector.

Meanwhile, the podcast touched on unrelated industry trends, including a video game CEO’s controversial remarks about prioritizing contractors over long-term job security. The CEO, who also leads the UK’s games industry trade body, sparked backlash by stating: “We've been a little bit too romantic about the idea that we should have employees and give people long-term job security.”

The comments underscore growing concerns about labor practices in the gaming industry, even as Saudi Arabia’s investment strategy falters.

Podcast Highlights: From Steam Controllers to Mario Party Historians

The episode also featured lighter topics, including host Chris’s enthusiasm for the new Steam controller. However, the conversation took a whimsical turn when the hosts imagined the “darkest possible special interest”: a Mario Party historian—someone doomed to analyze decades of board game minutiae.

Listeners were encouraged to support Aftermath Hours by subscribing to the podcast and three other independent sites—Rascal, Rogue, and Never Post—at a 50% discount. The hosts joked that reviews could help fund a dedicated historian to endure their jokes for years to come.

This week’s episode is available on Spotify, Apple Podcasts, and other platforms.