LIV Golf has officially filed for Chapter 11 bankruptcy protection in New Jersey, citing debts exceeding $500 million US as it seeks to revitalize the league without financial backing from Saudi Arabia. The decision follows the sudden withdrawal of funding by the Public Investment Fund of Saudi Arabia earlier this year, culminating in the last tournament held in Indiana.
The organization has reached a restructuring agreement with BC Partners, which will serve as the primary source of capital moving forward. LIV Golf’s CEO, Scott O’Neil, expressed optimism about the process, stating that it provides the necessary framework to pursue a significant transaction and usher in a new era for the league.
Under the proposed “LIV Golf 2.0” model, players would have majority ownership and participate in a condensed schedule. The revamped format aims to increase the field size from 57 to 75 players, implement a 54-hole cut for the first time, and introduce Monday qualifiers. Additionally, the team structure would be based on nationalities, with a focus on key markets such as Australia, South Africa, and Asia.
Despite these planned changes, the revised version of LIV Golf will be a scaled-down version of its initial ambitious vision, which included substantial investments to attract top talent from the PGA Tour. Notably, uncertainties remain regarding the future of prominent players like Jon Rahm and Bryson DeChambeau, who are among the leading creditors listed in the bankruptcy filing.
The filing disclosed LIV Golf’s assets estimated between $100 million and $500 million, along with liabilities ranging from $500 million to $1 billion. The state of Louisiana emerged as one of the major creditors, owed $1,220,000, following the cancellation of events in Louisiana and Michigan after the withdrawal of Saudi funding.
Chapter 11 bankruptcy, known for its reorganization provisions, enables LIV Golf to continue its operations and potentially secure new financing with court approval. The organization confirmed a $49.6 million debtor-in-possession financing agreement with the Public Investment Fund, subject to court endorsement.
Looking ahead, BC Partners L.P. and potential minority investors are expected to provide exit financing to support LIV Golf’s emergence from bankruptcy and the launch of its restructured version, targeted for as early as 2027. CEO Scott O’Neil emphasized the importance of this phase for the league’s future sustainability and growth, highlighting the ongoing efforts to address financial obligations and pave the way for a stronger LIV Golf.