LIV Golf has filed for bankruption protection in a New Jersey court.
The future of the breakaway tour was plunged into doubt in April when Saudi Arabia’s Public Investment Fund (PIF) announced that they would be pulling their funding.
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The rebel league has spent around £4bn since its launch in 2022 on signing stars such as Bryson DeChambeau and Jon Rahm through hugely lucrative contracts, bonuses and prize money.
But LIV confirmed on Tuesday that it had filed for Chapter 11 protection and had entered a “court-supervised restructuring process”, with BC Partners as the primary source of its capital.
The filing showed LIV faces more between $500m and $1bn in liabilities, with LIV listing between $100m and $500m in estimated assets. Rahm ($7.5m) and DeChambeau ($5.7m) were named as the two leading creditors listed in the filing.
In a statement, LIV said PIF had agreed to provide a $49.6m loan as part of debtor-in-possession financing, and confirmed that the league was planning to return in 2026 under a “player-first ownership model”.
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What is unclear is whether top players will sign up to be part of the second iteration of LIV Golf, with former Masters champion Rahm telling the BBC this week that “time will tell” and offering no assurances over his future.
Under the bankruptcy filing, players who had previously signed contracts with LIV Golf will be free to leave. Rahm reached a deal with the DP World Tour in May to play in their events and will tee-up at the Irish Open this week.
“LIV Golf has entered a court-supervised restructuring process that provides us with the time and framework to address previous financial obligations and complete a transaction that will make the league’s next phase a reality,” a statement said. “Put simply, this process is designed to build a stronger and more sustainable future for LIV Golf.”
LIV Golf’s CEO Scott O’Neil said: “This process gives us the structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf – one built around the fans, an innovative, player-first ownership model, and a part of the global golf ecosystem. We are excited about what lies ahead and yet, there is still much to accomplish in the months ahead.”
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