LIV Golf filed for Chapter 11 bankruptcy on Tuesday in New Jersey, outlining a rescue plan to transition into a new league, LIV 2.0, with players as majority owners. This move comes after the Saudi Public Investment Fund (PIF) withdrew its financial support earlier in the year, leaving the league with severe financial troubles, including just $15 million in cash at the time of filing and over $500 million in debt. The league has burned through $5 billion in equity from PIF since 2021 and another $500 million from a secured loan, with 2025 revenues just over $200 million, largely from sponsorships rather than TV deals.
The restructuring plan involves a $50 million debtor-in-possession (DIP) loan from PIF and a term sheet with BC Partners to lead a $300 million investment in LIV 2.0. Under this new structure, players would swap their claims for equity, making them majority owners with 52.5% of the reorganized league. They would also regain rights to personal name, image, and likeness (NIL) endorsements and receive signing bonuses. The deal needs to be finalized by early October to avoid a wind-down of the league.
LIV Golf 2.0 is expected to expand its field to 75 players, introduce a 54-hole cut, and hold events across five continents. The financial struggles are significant, with major players like Jon Rahm ($7.5 million), Bryson DeChambeau ($5.8 million), and Dustin Johnson ($5.5 million) listed among the largest unsecured creditors. The company reported generating about $5 billion in net operating losses since its 2021 launch, though it believes it could have reached profitability within five to seven years with adequate funding and a level playing field.
