Saudi Arabia's Public Investment Fund (PIF) have confirmed they will withdraw funding from LIV Golf at the end of the season.
Rumours have been swirling around LIV's future over the last few weeks, with PIF releasing a statement on Thursday afternoon which said: "The substantial investment required by LIV Golf over a longer term is no longer consistent with the current phase of PIF's investment strategy.
"This decision has been made in light of PIF's investment priorities and current macro dynamics.
"The LIV Golf Board has created a committee of independent directors to evaluate strategic alternatives for its future beyond PIF's funding horizon."
LIV offered substantial signing bonuses to attract some of the game's biggest names, running well into eight figures, while Jon Rahm was believed to have netted $500,000,000 for joining in addition to playing for $20,000,000 purses for each event.
Next steps for the breakaway tour and its players remain unclear. While Bryson DeChambeau's LIV contract expires at the end of the year and he'll be free to pursue other opportunities, Rahm is contracted for another year after this season.
While few could ever legitimately argue that Rahm was moving to LIV for the good of his career, it feels particularly damaging to stay with a tour that has already lost Brooks Koepka and Patrick Reed with more likely to follow.
In the immediate future, LIV will see its season out as planned with the exception of the postponed Louisiana event. In the longer-term, the tour doesn't seem to be shutting down, though it will need to source other avenues of funding to maintain prize pots sufficient to keep talented golfers onside.
LIV has lost more than £1bn in the five years since its inception yet retains a modest media profile, struggling to acquire broadcasting rights for its events. In a statement of its own on Thursday, LIV said it was seeking "long-term financial partners to support its transition from a foundational launch phase to a diversified, multi-partner investment model".
