LIV Golf generated 'virtually zero' revenue during inaugural season, league attorney's admit
LIV Golf held an inaugural event in June 2022 in London
The controversial LIV Golf league will soon begin a second season. But, federal court documents revealed that the circuit is failing to generate revenue of any real significance.
In a motion filed with the U.S. District Court for Northern California on Monday, attorneys for the golf circuit admitted that "virtually zero" revenue was produced in 2022.
The filing was part of LIV's ongoing lawsuit against the PGA Tour.
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A general view of the LIV GOLF logo during round 1 of the LIV Golf Invitational Series on July 29, 2022 at Trump National Golf Club in Bedminster, New Jersey. (Rich Graessle/Icon Sportswire via Getty Images / Getty Images)
The LIV lawyers asked Judge Beth Labson Freeman to deny the PGA Tour's motion for leave to add the PIF and its governor, Yasir Al-Rumayyan, as plaintiffs in the tour’s countersuit against LIV.
In the tour's countersuit, it alleges LIV Golf interfered with its contract with players.
Freeman has scheduled a Feb. 24 case management conference to hear arguments from both sides.
"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," LIV Golf's attorneys wrote in Monday's motion.
"Delay will equally harm LIV because the Tour continues its anticompetitive conduct while the litigation is pending. The Tour has damaged LIV's brand, driven up its costs by hundreds of millions of dollars, and driven down revenues to virtually zero."
A detailed view of a flag with LIV Golf logo is seen during the pro-am prior to the LIV Golf Invitational - Portland at Pumpkin Ridge Golf Club on June 29, 2022 in North Plains, Oregon. (Jamie Squire/LIV Golf/via Getty Images / Getty Images)
Former LIV Golf president and COO Atul Khosla told ESPN in October that the Public Investment Fund spent approximately $784 million bankrolling the circuit's first season. The funds were largely spent on paying out salaries, covering the production expenses for broadcasting LIV's events, and paying for the build-out of the league's website. However, that figure did not include player salaries.
Khosla stepped down in December.
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The second season of LIV Golf is set to air on the CW network. However, the league will not earn rights fees and must cover production costs due to a revenue-sharing arrangement, according to ESPN's Mark Schlabach.
Phil Mickelson of United States of America tees off on the eighth hole during Day One of the LIV Golf Invitational - Bangkok at Stonehill Golf Course on October 07, 2022 in Pathum Thani, Thailand. (Peter Van der Klooster/Getty Images / Getty Images)
Meanwhile, the PGA Tour is set to implement several significant changes. The Sentry Tournament of Champions, the Genesis Invitational, the Arnold Palmer Invitational, The Players Championship, the WGC-Dell Technologies Match Play, the Memorial Tournament, and the FedEx St. Jude Championship and the BMW Championship will feature increased purse sizes for players.
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That second LIV Golf season will start Feb. 24 in Mexico. The circuit will stage 14 tournaments in 2023.