Key facts
- LIV Golf has filed for Chapter 11 bankruptcy protection in the United States.
- The filing follows Saudi Arabia's Public Investment Fund (PIF) withdrawing its funding.
- LIV Golf has identified BC Partners as a proposed new investor.
- The bankruptcy process is intended to allow LIV Golf to restructure its debts and obligations.
- Players are expected to be free to leave their current contracts and explore participation in a new player-owned league.
- PIF is providing $49.6 million in debtor-in-possession financing to fund the restructuring process.
LIV Golf has filed for Chapter 11 bankruptcy protection in the United States, a move aimed at restructuring the business following the withdrawal of funding from Saudi Arabia's Public Investment Fund (PIF).
The filing, made in the federal district court of New Jersey, allows the company to reorganize its debts and address financial obligations. LIV Golf has announced that international investment firm BC Partners is its proposed new investor. This restructuring is intended to pave the way for a new, majority player-owned league set to commence early next year.
As a result of the bankruptcy filing, players are expected to have the option to leave their current multi-year contracts with LIV Golf. Sources indicate that these contracts under the previous iteration of LIV Golf will conclude, with amounts owed to players and other creditors to be handled through the court process. However, the timeline for players to discuss participation in other tours remains unclear.
Since its inception in 2021, LIV Golf reportedly spent over $5 billion, attracting prominent golfers with lucrative deals. The PIF stated that the substantial investment required for LIV Golf over the long term was no longer consistent with its strategy, though it remains committed to other sports investments. PIF is providing $49.6 million in debtor-in-possession financing to support the restructuring process.
LIV Golf chief executive Scott O'Neil expressed confidence in achieving player participation for the new league, and golfer Bryson DeChambeau indicated optimism about future developments. Jon Rahm, when asked about his future, stated he still had a contract with LIV 1.0 that he was willing to fulfill, adding that "time will tell."