LIV Golf is reportedly preparing for bankruptcy protection as early as the week of September 7, according to the Financial Times. This comes after Saudi Arabia's Public Investment Fund (PIF) notified LIV Golf in April that its funding, which has exceeded $5 billion since 2022, would only continue through the end of the 2026 season. The PIF's decision to withdraw its primary financial support has led to a significant restructuring within LIV Golf, including the layoff of most of its workforce and efforts to secure new funding.
As part of this restructuring, LIV Golf has sent out settlement offers to players who are owed millions in guaranteed payments. Initial offers are reported to be only a few cents on the dollar, as the PIF has been reluctant to provide additional funding beyond the bankruptcy loan. Jon Rahm, for example, is still reportedly owed over $100 million from his multi-year deal. Many former vendors and contractors also claim to be unpaid, and lawsuits against the league are accumulating.
The bankruptcy filing, potentially a Chapter 11, is intended to extend LIV Golf's lifespan and facilitate a "LIV 2.0" version, rather than permanently shut down the league. The PIF is expected to provide a "debtor-in-possession" financing of under $100 million to help navigate the bankruptcy process, but without committing additional long-term funding. LIV Golf is also in talks with BC Partners Credit for a potential new funding deal, having sought between $250 million and $350 million.
In its next iteration, LIV Golf plans to be majority-owned by players, with equity stakes offered to those who remain. The restructured league would likely operate a significantly reduced calendar of around ten tournaments worldwide. This shift reflects a recalibration of Saudi Arabia's sports investment strategy, as PIF officials have framed the golf decision as an evolution of investment priorities rather than a complete withdrawal from sports.
