LIV Golf officially filed for bankruptcy on Tuesday, a step many had expected to come months after Saudi Arabian funding had been pulled from the league.
LIV Golf announced on Tuesday that it had entered into chapter 11 bankruptcy in the United States. The restructuring, the league said, was done in an effort to allow the league to survive now without Public Investment Fund backing — something that Saudi Arabia announced months ago it would no longer provide after the 2026 campaign.
“The people of LIV Golf, led by the players, have continued to show incredible resilience, commitment, and a shared belief in what we are building. Thanks to their tireless work, LIV Golf has created a foundation to entertain and inspire the next generation of global golf fans around the world,” LIV Golf CEO Scott O’Neil said in a statement. “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. We believe deeply in LIV Golf’s future, the opportunity in front of us, and the people who will help us realize it.”
LIV Golf also said that the PIF has agreed to provide nearly $50 million in debtor-in-possession financing, and that it is seeking similar bankruptcy proceedings in England and Wales.
Advertisement
BC Partners, a London-based private equity firm, will finance the league’s attempted return in 2027.
LIV Golf trying to transition into LIV 2.0
The PIF announced back in April that it would no longer fund LIV Golf after it had reportedly invested more than $5 billion into the league since its inception. That has led to plenty of problems for LIV Golf in the months that followed.
The league was hit with multiple lawsuits and had two events canceled, including the team championship in Michigan last month. LIV was reportedly running on loans for months, too, and had been delayed in paying players from its Bedminster tournament in New Jersey.
Advertisement
Multiple notable golfers have already left LIV Golf, and are either back on the PGA Tour already or are preparing to do so. Jon Rahm has been rumored to be considering a departure, and he’s listed as the top unsecured creditor in the bankruptcy filing ahead of Bryson DeChambeau. They are still owed millions of dollars. DeChambeau’s contract with LIV Golf expired at the end of the season.
While specifics aren’t yet known, the restructuring could result in LIV Golf members being released from their existing contracts.
O’Neil and LIV Golf announced that it had secured an investor to keep the league afloat in 2027, though details surrounding that agreement — including who the investor actually is — are very scarce. And the league will certainly need more money.
Advertisement
All of that, and the fact that LIV Golf had been reportedly laying the groundwork for bankruptcy in the United States for months, make Tuesday’s announcement very unsurprising.
The move to “LIV 2.0” is expected to take months to finalize. The league announced mass layoffs last month, too, a restructuring that many had seen coming for months. LIV Golf is hoping to put out a 10-event schedule in 2027, five events in the United States and five tournaments internationally.
But that’s still a long way off, and plenty has to be figured out before that can happen. Filing for bankruptcy is a notable step, but it is far from the last one the league will have to make in the coming months.
“Now it is time to enter the next phase of LIV Golf,” O’Neil wrote in a letter to fans. “Today, we took an important step forward to get there. 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.
“Put simply, this process is designed to build a stronger and more sustainable future for LIV Golf.”
Read the full article here
