The Star Reporter|Published
In a recent revelation that has sent shockwaves through South Africa's sporting community, Sport, Arts and Culture Minister Gayton McKenzie disclosed that the R82,166,500 paid in taxpayers' money to secure a LIV Golf tournament has yielded no measurable benefits for poorer township or rural communities. The event, set to occur at the plush Steyn City estate in Johannesburg, has been overshadowed by LIV Golf's recent bankruptcy filing in the United States.
In response to a parliamentary question from National Assembly member Gift Motaung, McKenzie acknowledged that the hefty sum paid to LIV Golf Events included a US$5 million licence fee for the rights to host the March 2026 tournament. However, he startlingly confirmed that none of these funds was earmarked for community development initiatives.
“No portion of it was allocated to, or disbursed through, community-development programmes,” McKenzie said, leaving the door wide open for scrutiny of how taxpayer money was used. He added that his department has no records showing tangible benefits to rural communities, attributing this to LIV Golf's control over all event-related appointments.
“Benefits to rural communities arise from the economic activity generated by the event rather than from the licence fee,” he added, leaving many sceptics questioning the validity of this assertion.
The timing of the announcement couldn't be more troubling, as LIV Golf recently filed for Chapter 11 bankruptcy, with estimated liabilities ranging from $500 million to $1 billion, a staggering amount owed to at least 1,000 creditors, including prominent players like Bryson DeChambeau and Jon Rahm. The league, once buoyed by investment from Saudi Arabia's Public Investment Fund, faces an uncertain future after a significant withdrawal of backing.
Despite these challenges, McKenzie had previously assured South Africans that preparations for the tournament were proceeding without interruption. “LIV Golf will go ahead as normal,” he had proclaimed, even as news of the league's financial troubles emerged.
Further complicating matters, McKenzie admitted that the Department of Sport, Arts and Culture had not commissioned an independent impact assessment before committing taxpayer resources to such a financial involvement. Instead, the only evaluation presented so far was an economic impact study conducted by GSIQ, a research company associated with LIV Golf. This absence of due diligence has raised alarms among critics and stakeholders alike.
When asked how the lavish R82 million was financed, McKenzie said the Treasury approved a reallocation. He insisted that these costs should be “distinguished from other costs associated with staging the event”, including prize money and operational expenses.
Following these disclosures, the minister has committed to presenting a signed close-out report to Parliament's Portfolio Committee on Sport, Arts and Culture by November 22, 2026. The report is expected to detail the event's benefits and clarify its economic impacts, amid rising calls for accountability and transparency.
Despite these commitments, several pressing questions remain unanswered: What obligations does South Africa have under the multi-year hosting agreement with LIV? Will any portion of the paid licence fee be recoverable given the bankruptcy? And crucially, what promises can be made to ensure future investments truly benefit the communities they are intended to support?
With LIV Golf's future uncertain and revelations about community benefits casting doubt on the event's promise, the South African public is left waiting for clarity, accountability, and action on their investment in professional golf.