LIV Golf, the controversial golf league originally funded by Saudi Arabia, filed for Chapter 11 bankruptcy protection on Tuesday in New Jersey, marking a significant turn in its four-year history. The league listed liabilities between $500 million and $1 billion, against assets valued between $100 million and $500 million. This financial restructuring comes after Saudi Arabia's Public Investment Fund (PIF), which had been LIV's main financial backer, abruptly withdrew its funding earlier this year.
The bankruptcy filing indicates that LIV Golf owes significant amounts to top players. For example, Jon Rahm is reportedly owed $7.47 million, making him the largest individual creditor. Other prominent players with substantial claims include Bryson DeChambeau ($5.77 million), Dustin Johnson ($5.49 million), and Cameron Smith ($4.84 million). These debts are primarily associated with "Player Participation Agreements," or playing contracts, which were a hallmark of LIV's initial strategy to attract top talent.
Despite the bankruptcy filing, Chapter 11 protection allows the company to continue operations while it works out a plan to repay its debts under court supervision. LIV Golf's CEO, Scott O’Neil, stated that this process provides the "structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf." The league plans a "LIV Golf 2.0" iteration, which will reportedly feature players as majority owners, a reduced schedule, an expanded field of 75 players, and the introduction of a 54-hole cut. BC Partners is noted as the primary source of capital for the restructuring plan. However, the Saudi PIF is also providing a $49.6 million debtor-in-possession financing loan, indicating some continued, albeit reduced, involvement.
The total sum owed to the 27 named players among the top 30 unsecured creditors is approximately $64.2 million. While these amounts are substantial, they are reportedly much lower than the initial contracts players signed when they first joined LIV. It remains unclear whether these current figures represent remaining installments, payments for the rest of 2026, or other arrangements related to future player equity in the league. The financial upheaval follows an unprecedented period of monetary influx that disrupted professional golf.
