LIV Golf, the high‑profile professional golf league that entered the sport with billions of dollars of backing, filed for Chapter 11 bankruptcy protection in a New Jersey federal court on Friday. The filing follows the Saudi Arabia Public Investment Fund’s decision in April to stop its financial support and redirect capital to domestic projects amid regional pressures.
Funding withdrawal triggers collapse
The Public Investment Fund (PIF) had been LIV’s primary backer since the league’s launch in 2021. In April, PIF governor Yasir Al‑Rumayyan announced the fund would cease further contributions, citing the need to focus on Saudi domestic priorities and the financial strain caused by the ongoing regional conflict with Iran. Al‑Rumayyan also resigned from LIV’s board shortly thereafter.
During its five‑year run, LIV Golf is estimated to have spent between $5 billion and $8 billion on player contracts, tournament purses and operational costs. The bankruptcy filing reveals that the league owes millions of dollars in unpaid compensation to top players such as Jon Rahm, Bryson DeChambeau, Dustin Johnson and Cam Smith. In addition, most of the league’s operational staff have been laid off and event contractors are awaiting payment.
Legal challenges and restructuring proposal
LIV also faces a lawsuit from the Premier Golf League alleging breach of confidence and conspiracy. The Chapter 11 process is expected to void existing player contracts, leaving the league to renegotiate terms under a new structure.
To keep the organization afloat during the bankruptcy case, the PIF provided a $50 million bridge loan. The league’s future now hinges on a proposed restructuring plan dubbed “LIV 2.0.” Under the plan, London‑based private‑equity firm BC Partners would fund a 2027 relaunch, and players would receive majority ownership of the league.
CEO Scott O’Neil outlined the envisioned format for the reboot, which would feature 75‑player fields, 72‑hole tournaments, cuts, Monday qualifiers and a national‑team component. The proposed structure closely mirrors the traditional tour model that LIV originally set out to replace, suggesting a shift toward a more conventional competition format.
Implications for the sport
The bankruptcy filing marks a dramatic turn for a venture that sought to challenge the established golf establishment. While the league’s ambitious financial model has collapsed, the restructuring proposal could preserve a professional circuit for its players and maintain jobs for some staff.
Industry observers note that the outcome will depend on whether BC Partners can secure sufficient capital and whether the new ownership model will attract sponsors and broadcasters. If successful, the revived league could still contribute to the broader golf ecosystem by offering additional playing opportunities and potentially spurring competition that benefits fans.
For now, LIV Golf’s creditors, players and fans await court decisions and the next steps in the restructuring process.
Original reporting: Fox News (HLL/CB) — read the source article.
