The $45 Million Gamble That Paid Off (For Now)

The news of LIV Golf’s bankruptcy sent shockwaves through the golf world, but for South Australia, it brought a welcome reprieve from what had promised to be a contentious issue: the redevelopment of North Adelaide Golf Course. A six-year contract extension with LIV Golf had committed $45 million to upgrading the course, which was set to become a world-class venue for golf and other events.

Critics argued that this investment was premature, given LIV Golf’s questionable financials and lack of a clear future beyond its current sponsorships. However, in May, the announcement that the Australian Open would be hosted at North Adelaide from 2028 offered a convenient solution to these concerns. The tournament has not been without its own controversies in the past, but it brings stability and prestige to the venue.

The South Australian government had secured the Australian Open as part of their strategy for balancing out the risks associated with hosting LIV Golf. By having multiple high-profile events tied to the course upgrade, they hoped to mitigate any potential losses should LIV Golf falter. As Labor minister Clare Scriven noted, securing the Australian Open was a key part of this strategy.

While the government insists that they do not provide support for events that are not held, there is still some uncertainty around what exactly this means in practice. Questions remain about whether South Australian taxpayers will ultimately be on the hook for LIV Golf’s debts if it fails to make its payments. The course upgrade could also be affected by LIV’s uncertain future.

The debate over North Adelaide has largely shifted away from concerns about LIV Golf’s financials and towards other controversies surrounding the course redevelopment, including the planned MotoGP circuit that will require the felling of hundreds of trees. This new development has become a source of contention for parklands advocates and local residents.

LIV Golf will continue to operate in some form – at least until it can exit bankruptcy. Its next event is scheduled for March 2027 at the Kooyonga Golf Club, although the status of its payment to the club remains unclear. As Australian golf commentator Jimmy Emanuel notes, while LIV Golf’s events may need to be toned down in light of their financial constraints, they are likely to continue hosting some form of tournament.

In retrospect, it seems that the government’s gamble on LIV Golf has paid off – at least for now. The presence of the Australian Open offers a degree of stability and prestige that was lacking with LIV Golf alone. However, this development also raises questions about what happens if and when LIV Golf does eventually collapse.

As it stands, South Australia’s investment in North Adelaide appears to have been a calculated risk – one that has thus far yielded benefits. Whether this trend continues remains to be seen.