PIF cuts investments (but not in LIV Golf)
To frame the news correctly, I think it is necessary to make a premise.
We are talking about a sovereign fund that, as of today, has assets of $930 billion, and has the goal of reaching $2 trillion by 2030.
The singular fact is how it intends to get there.
Pif, statements
During the annual Future Investment Initiative conference (on the sidelines of which he met with Jay Monahan, Editor’s note) held in Riyadh, Yasir Al-Rumayyan, governor of the fund, according to what was reported by the Financial Times said:
“The fund’s international investments have grown from 2% in 2015 to the current 30%”
“Now our goal is to bring it down to a value between 18 and 20%”
“People are used to coming to us asking for money. We are now trying to move from people who want to get our money to those who want to invest with us (it is inevitable to think of PGA Tour Enterprises, Ed.)”.
The reduction in investment is certain, but it will affect future plans.
The existing portfolio will not be shaken, as Tom Kershaw of The Times stated on his X profile:
“It is understood that the announcement by the PIF regarding the cut in international investment concerns future rather than existing investment, in the sense that it will not affect the future of LIV Golf or the plans for the Newcastle United stadium (of which Al-Rumayyan is chairman, Ed.)”.
Given that the financial capacity of the PIF is not in question, it remains to be seen how the commitment contained in the agreement with the PGA Tour ($1.3 billion, Ed.) will be “fitted” into this new investment policy.
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 basic 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 non-observance by many players of 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.