LIV Golf is reportedly preparing to file for Chapter 11 bankruptcy protection as early as next week. This strategic move is intended to facilitate a transaction that would see the league transition to majority player ownership. A spokesperson for LIV Golf did not comment on the exact timing of the filing but indicated such a move could pave the way for the league's next phase by addressing its current obligations within the U.S. legal system.
The league's future became uncertain earlier this year after Saudi Arabia's Public Investment Fund (PIF) withdrew its financial backing, which had amounted to an estimated $5 billion since LIV's inception in 2022. The PIF informed LIV in April that its financial commitment would end by the close of the 2026 season, citing that the required scale of investment no longer aligned with its broader investment strategy. This funding withdrawal led to significant operational scaling back, including the layoff of most of LIV Golf's more than 300 employees as of September.
To navigate this transition, LIV Golf has been in discussions with BC Partners Credit, seeking between $250 million and $350 million in new funding, which could support a pre-packaged Chapter 11 filing. While the PIF is stepping back from long-term funding, it is reportedly prepared to provide a limited debtor-in-possession loan of under $100 million to help LIV Golf manage the bankruptcy process itself. The new structure envisions a leaner "LIV 2.0" with a significantly reduced schedule of approximately ten tournaments worldwide.
A key challenge in this restructuring is addressing player contracts. Many players, including Jon Rahm, who is reportedly still owed over $100 million from his multi-year deal, have years left on their agreements. Settling these contracts is complicated because the PIF was responsible for previous payouts. The league also faces outstanding payments to former vendors and contractors, with lawsuits against LIV Golf accumulating. The intention is to settle these obligations through the bankruptcy process while retaining critical star players necessary for the league's viability, with players being offered equity stakes in the new entity.
