LIV Golf Apparently Spent Over a Billion Dollars to Make Zero Dollars?
LIV Golf is more than just an upstart sports league. It's also one of the most fascinating businesses to ever exist. We knew that they threw around an ungodly amount of money to attract some of the biggest names in the sport last year, but now it appears that they did not make any money because of it. In a motion filed on Monday LIV's attorney wrote that they had "virtually zero" revenue in 2022. Via ESPN:
"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."
And exactly how much did they spend?
Former LIV Golf president and COO Atul Khosla told ESPN in October that the Public Investment Fund spent about $784 million bankrolling the circuit's first season in 2022, including employee salaries, build-outs at tournaments and production costs for broadcasting LIV events on social media and its official website.
So they spent three-quarters of a billion dollars - and that's not even counting the players' contracts! That's more than a billion dollars! In one year! And their big move for 2023 was to put tournaments on the CW where it seems like they will continue to pay for everything and just split any money they make from advertising.
It seems unbelievable. And bad businessing! How can you spend that much money on a business of some sort and not make... any? None monies? How is that possible? Did no one have to pay to see the Chainsmokers perform? You're telling me people are getting stuff like this for free!?
Everybody may know the Aces, but apparently no one is paying any money to see them.