The American government has called for a meeting with LIV Golf officials amid rumours the league could shut down.
LIV Golf is facing a serious period of uncertainty, with various reports claiming that the Saudi-backed league could collapse just five years after the initial plans were revealed.
It is believed that sometime in the coming months LIV Golf will make a “seismic” announcement, amid concerns that the Saudi Arabian Public Investment Fund (PIF) may pull their backing due to the ongoing conflict in the Middle East.
LIV Golf chief O’Neil has responded to these rumours on several occasions, assuring that ongoing season will 'continue exactly as planned', later adding that funding has been secured until the end of the season.
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However, it's clear that, like many others, the US government isn't exactly convinced that this means LIV Golf's long-term future is secure as Louisiana officials have demanded talks with the league's chiefs.
In an email sent to LIV Golf, Louisiana Economic Development Secretary Susan Bourgeois demanded answers regarding the event planned to take place later this year.
As it stands, LIV Golf is set to visit New Orleans for the first time ever from June 25–28, and Bourgeois has said that she needs reassurance by Monday (April 20) that the event will still go ahead.
“Needless to say, we are concerned about the reports this week,” Bourgeois said. “They are in Mexico, but I have said, by Monday, we need to have a candid conversation about where this stands.”
LIV is yet to respond to the email, but a spokesperson for Gov. Jeff Landry stated: “So far, we have not been notified of anything as far as LIV folding or pulling out.”
The deal, announced in August, confirmed that the Bayou Oaks Golf Course at City Park would host the tournament, with Louisiana given a $7.2 million incentive package that included a $5 million “hosting fee” for LIV and $2.2 million for course upgrades.
Should the deal fall through,Bourgeois and Senate President Cameron Henry confirmed that LIV would have to pay back the 1/5 of its $5 million hosting fee that it has already received.
"We have a claw back provision should they falter," he said. "If they should close, we can ask for our money back.”
Louisiana's concerns come after golf reporter Ryan French confirmed that the 'bombshell' announcement would soon arrive, claiming that players and employees haven't been paid recently.
Speaking during an appearance on X Spaces, French claimed: "I have some pretty good sources and I've heard that some other people have sources that LIV is shutting down.
"I've got everything from, and these are people that I trust, that you guys know.
"Players didn't get paid today, power went out because the bill wasn't paid, employees didn't get paid. Stuff like that. There is definitely a lot going on... Things are not good."
Topics: Golf
Ben McCrum