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LIV Golf filed for Chapter 11 bankruptcy in New Jersey after losing Saudi PIF funding, and it will use a nearly $50 million PIF loan to restructure. The breakaway tour plans to return next year with BC Partners and a global 75-player schedule, though players' contracts could be voided.
LIV Golf, the breakaway men's tour funded by Saudi Arabia's Public Investment Fund ( PIF), has filed for Chapter 11 bankruptcy protection in New Jersey. The filing was made on Tuesday after the PIF cut funding, and the league says it will use a PIF loan of about $49.6 million to support the restructuring.
CEO Scott O'Neil said the bankruptcy process gives LIV the structure and time to pursue a landmark transaction and begin the next chapter of the league. O'Neil added that LIV intends to return next year in a new form built around fans, an innovative player-first ownership model and a part of the global golf ecosystem. LIV said no definitive decisions regarding the 2027 schedule or individual events are being announced at this time.
The tour launched in 2022 and spent billions of dollars luring players from the PGA Tour, triggering bitter divisions in the sport. The PIF announced in April that further investment no longer aligned with its strategy, and funding was cut at the close of the 2026 season. LIV had already laid off the majority of its staff earlier this month. The Chapter 11 petition places liabilities between $500 million and $1 billion and assets between $100 million and $500 million.
The court filing reviewed by AFP showed LIV owes up to $1 billion to at least 1,000 creditors. The largest unsecured claims against the tour belong to LIV's star players. Court documents name Jon Rahm, Bryson DeChambeau and Dustin Johnson as holding the largest claims, each for more than $5 million. Cameron Smith is also listed among the league's high-profile unsecured creditors, owed more than $5 million.
Many of these players were recruited with significant signing bonuses when the breakaway circuit was created in 2022. LIV has partnered with British investment group BC Partners Advisors LP for the restructuring effort. It is also seeking recognition of the US bankruptcy filing in England and Wales to cover its international assets and operations. The company said it remains in advanced discussions with players, including on creating an ownership structure that aligns players' interests with the league's long-term success.
O'Neil said in an open letter to fans that players will have the opportunity to share directly in the value they help create. Tour officials had previously pledged that a LIV 2.0 version would re-emerge under new investors next season, with a shorter schedule and reduced prize money. Details released Tuesday show LIV intends to host tournaments across five continents, including Australia, South Africa, Mexico, England, Hong Kong and the United States.
LIV also plans to expand fields to 75 players, introduce a cut, and create additional pathways for players to earn their way into the league, including Monday qualifiers. The restructuring depends heavily on whether top stars decide to remain. Multiple reports said players' contracts with LIV Golf would be voided as a result of the bankruptcy, freeing them to stay with the tour in its new guise or pursue money owed to them.
Widespread reports have linked several LIV stars to potential returns to the PGA Tour and other series. The PGA said it currently has no plans to offer LIV players a pathway back. LIV did not immediately respond to an AFP request for comment on the matter.
IrishTimes
The42_ie:This story was compiled and edited by the HeadTopics newsroom and HT AI from the reports above.
LIV Golf Chapter 11 Public Investment Fund PIF Saudi Arabia Golf Bankruptcy Sports Finance Bryson Dechambeau Cameron Smith Jon Rahm BC Partners Advisors Funding Cut LIV Golf Bankruptcy Chapter 11 Filing PIF Funding Cut Saudi-Backed Golf Tour LIV Golf 2027 Restructuring
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