Tranlate this title LIV to raise $250 million to become profitable in spanish

LIV Golf is seeking funding to offset the shortfall caused by Saudi Arabia’s divestment. The golf course aims to raise $250 million (€214.8 million) from new investors to ensure its continued operation beyond the next season. With this amount, LIV Golf estimates it would reach profitability in approximately 20 months, according to Axios.

Liv Golf, situation

The course is also considering raising around $150 million (€128.8 million) by leveraging the increased value of its equipment and television contracts. However, the course needs to secure capital by October at the latest, or failing that, obtain bridge financing.

LIV Golf announced last month that it had initiated strategic moves to raise capital after Saudi Arabia’s Public Investment Fund (PIF) announced it would cease its financial contributions at the end of this year. This divestment will mean the loss of the organization’s main source of income since its founding in 2021. The tour is seeking long-term financial partners to «support its transition from an initial launch phase to a diversified investment model with multiple partners.»

The fund stated that the significant long-term investment required by the tour is no longer consistent with the current phase of its strategy, shaped by its investment priorities and the current macroeconomic environment. PIF has invested approximately $5 billion (€4.239 billion) in LIV Golf to date for tournament development and high-profile signings such as Jon Rahm, who signed a four-year contract worth around $525 million (€445 million).

The rules of golf are relatively complicated compared to other sports because they are played outdoors, close to nature and animals. Respecting the rules is a fundamental element in the game of golf, which, almost always based on self-control and the free conscience of the players, often sees distorted results, sometimes consciously, but often unconsciously or through carelessness, due to the failure of many players to comply with the rules of the game. In addition to the rules, golf adheres to a code of conduct, known as etiquette, which generally means playing the game with due respect for the golf course and other players. Etiquette is an essential component of this sport.