Saudi Arabia’s decision to stop funding LIV Golf after the 2026 season has raised wider questions about the future of the kingdom’s massive spending across global sport, but executives at TKO Group Holdings have insisted that UFC, WWE and boxing events backed by Saudi partners will continue as planned.The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, confirmed this week that it would no longer bankroll LIV Golf beyond next season, ending a partnership that had funded the breakaway golf series since its launch in 2022. The decision immediately sparked concern across multiple sports because Saudi Arabia has spent tens of billions of pounds over the past decade establishing itself as a global sporting hub through investments in football, boxing, Formula 1, tennis, horse racing and combat sports.Among those concerns was whether companies connected to Saudi-backed events, including TKO Group Holdings, could face similar funding cuts.
What is TKO Group Holdings?
TKO Group Holdings was formed in September 2023 after Endeavor’s UFC parent company Zuffa merged with WWE to create a combined publicly traded sports and entertainment company.The group now owns both Ultimate Fighting Championship and World Wrestling Entertainment under the same corporate umbrella, although both brands continue operating separately.TKO’s wider portfolio also includes Professional Bull Riders, hospitality company On Location, sports marketing agency IMG and the recently launched Zuffa Boxing banner, which is being positioned as the company’s entry into major international boxing promotion.Saudi Arabia has become increasingly important to TKO through major UFC cards, WWE premium live events and the recently launched Zuffa Boxing banner.
Mark Shapiro says Saudi commitment to UFC and WWE is “unwavering”
Speaking during TKO’s Q1 FY26 earnings call, company president and COO Mark Shapiro addressed speculation surrounding Saudi Arabia’s sports investments following the LIV Golf decision, while the company itself reported another strong financial quarter across both WWE and UFC operations.“I want to address activity in the Middle East and neighbouring markets,” Shapiro said.“First and foremost, we are firmly moving ahead with our scheduled events. UFC returns to Azerbaijan with Fight Night Baku on June 27. That same night, WWE hosts Night of Champions from Riyadh, Saudi Arabia.“This historic double-header reflects a commitment from both our partners and us to bring world-class events to fans across the region, despite a challenging environment.”
Mark Shapiro, Dana White (Image Source: Getty)
Shapiro then directly addressed concerns created by PIF’s withdrawal from LIV Golf funding.“I would add that, despite PIF withdrawing its funding of LIV Golf, our partners in Saudi Arabia have confirmed that this will not be the case with TKO. Their commitment to our properties in 2026 and beyond is unwavering.“After these two events, we expect the remainder of our 2026 events in the Middle East, comprising six events, to take place as planned. The demand is real, our partners are committed, and we are leaning in.”TKO reported that WWE generated $475.7 million in revenue alongside $256.1 million in adjusted EBITDA during Q1 FY2026, with the wrestling side of the business boosted by a 62 per cent increase in live events revenue. UFC meanwhile generated $401.2 million in revenue and $254.5 million in adjusted EBITDA, helped in part by a $51.2 million increase in media rights, production and content revenue.
Why Saudi Arabia pulled funding from LIV Golf
LIV Golf launched in 2022 as a rival league to the PGA Tour and was heavily financed by Saudi Arabia’s Public Investment Fund, which reportedly invested more than $5 billion into the project.Huge signing bonuses were paid to players including Phil Mickelson, Dustin Johnson and Brooks Koepka in an effort to rapidly establish the league.But despite those investments, LIV Golf reportedly continued generating enormous financial losses. The uncertainty around the league’s future even led players such as Bryson DeChambeau to publicly discuss alternative ways events could be broadcast if the project collapsed.
FILE – A general view of the 18th hole flag pole during the first round of LIV Golf Jeddah at the Royal Greens Golf & Country Club, Friday, March 1, 2024 in King Abdullah Economic City, Saudi Arabia. (Matthew Harris/LIV Golf via AP, File)
In its statement confirming the withdrawal, PIF said: “The substantial investment required…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 fund nevertheless insisted it remained committed to sport overall.“PIF remains committed to deploying capital internationally in line with its investment strategy, including its substantial current and future investments in various sports as a priority sector.”
Wider concerns around Saudi Arabia’s sports spending
The LIV Golf decision did not emerge in isolation. According to reports cited by BBC Sport earlier this year, there had already been signs of a broader strategic shift within Saudi Arabia’s investment planning, with one source stating that “everything in the PIF world” was under serious review toward the end of last year.That reassessment reportedly followed a budget deficit of $73 billion caused by increased spending and lower oil revenues.Several developments fuelled speculation that Saudi Arabia was beginning to reduce or reconsider certain sports investments.The 2029 Asian Winter Games in Saudi Arabia were postponed indefinitely, while the WTA Finals in women’s tennis are set to leave the country after a three-year hosting agreement was not extended.PIF also sold 70 per cent of its stake in Saudi Pro League side Al Hilal to Kingdom Holding Company earlier this year.The Saudi Arabian Snooker Masters was cancelled just two years into a planned 10-year deal, and reports also suggested the country had abandoned plans to bid for the 2035 Rugby World Cup.Saudi Arabia nevertheless remains deeply involved across multiple sports. The fund still backs Premier League club Newcastle United, while Saudi clubs Al Nassr, Al Ittihad and Al Ahli continue operating with major state-linked financial backing.The country has also spent heavily bringing stars such as Cristiano Ronaldo into the Saudi Pro League.
Saudi Arabia still preparing for the 2034 FIFA World Cup
Much of Saudi Arabia’s long-term sports strategy remains tied to Crown Prince Mohammed bin Salman’s Vision 2030 programme, which aims to modernise and diversify the kingdom’s economy beyond oil through tourism, entertainment and international investment.The biggest project within that strategy is the 2034 FIFA World Cup, which Saudi Arabia is scheduled to host.Preparations for the tournament are expected to require enormous infrastructure spending over the next eight years, including stadium construction, transport expansion and broader urban development projects.Viewed in that context, LIV Golf’s enormous ongoing losses reportedly became increasingly difficult for PIF to justify internally compared with projects seen as producing stronger long-term returns or greater geopolitical value.For now, however, TKO executives insist Saudi Arabia’s support for UFC, WWE and combat sports remains fully intact despite the growing scrutiny surrounding the kingdom’s wider sporting investments.