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LIV Golf has filed for Chapter 11 bankruptcy protection, following the withdrawal of multi-billion-dollar funding by Saudi Arabia's Public Investment Fund (PIF) in April. The filing, made in a New Jersey federal district court on Tuesday (September 8), aims to restructure the league's finances and address debts, including $45 million owed to players. The league, which launched in 2021, had received over $5 billion from PIF.
The bankruptcy process is expected to end existing contracts, allowing players to leave and addressing money owed to them and other creditors. Among the top creditors are Jon Rahm, who is owed $7.5 million, Bryson DeChambeau with $5.7 million, and Dustin Johnson with $5.5 million. Despite the financial turmoil, LIV Golf has secured a new investor, BC Partners, and plans to launch a majority player-owned league, dubbed "LIV 2.0," early next year.
The restructuring will involve a reduced schedule of 10 events, with lower prize money compared to the PGA Tour. Players will receive equity and individual commercial rights, offering them greater earning potential. The new league aims to create a sustainable business model, moving away from the free-spending days of LIV 1.0.
LIV Golf CEO Scott O'Neil expressed confidence in the league's future, stating that the bankruptcy process is not a liquidation but a bridge to a new beginning. However, the league faces challenges, including potential legal opposition from players and creditors. The PIF will provide $49.6 million in debtor-in-possession financing during the bankruptcy process, while BC Partners and other investors are expected to provide exit financing once a reorganization plan is approved.
The future of LIV Golf remains uncertain, with players having no obligation to join the new league and unclear timelines for joining other tours. The league hopes to emerge from Chapter 11 in early 2027, with a leaner business model and a player-centered ownership structure.
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