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LIV Golf filed for bankruptcy on Tuesday—an expected step in the league’s fight for survival after the Saudi PIF decided to end its funding this year.
LIV is voluntarily entering a court-supervised Chapter 11 restructuring process in the New Jersey District U.S. Bankruptcy Court. The move comes alongside the announcement of a restructuring support agreement with BC Partners Credit, the London- and New York-based firm that is exploring a “recapitalization transaction” with LIV.
The bankruptcy and corporate restructuring are intended to preserve LIV’s existence as the league attempts to transition to a new ownership model in which players are majority equity holders. LIV “remains in advanced discussions” with players about next steps, according to Tuesday’s announcement.
LIV advisor Gene Davis, chairman of an independent board of directors that was created after the PIF announced its exit, said LIV “reviewed all available options and believe today’s actions reflect the most responsible path forward for the League and its stakeholders.” LIV CEO Scott O’Neil said, “This process gives us the structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf.”
LIV’s proposed transaction with BC Partners remains subject to court and stakeholder approval.
Money Matters
The PIF has agreed to provide $49.6 million in debtor-in-possession financing so LIV can continue operating during the bankruptcy process. However, that’s not even 10% of what LIV estimates its liabilities to be—between $500 million and $1 billion, according to the filing; LIV estimates its assets are worth between $100 million and $500 million.
BC Partners is expected to provide exit financing, according to LIV, which is also seeking recognition of the U.S. Chapter 11 proceedings in England and Wales “to preserve the value of its international assets and operations.”
LIV’s bankruptcy filing included a list of creditors with the 30 largest unsecured claims who are not insiders. This is money that is past due and does not include what some players could be owed from years remaining on their contracts.
Jon Rahm is currently owed the most money among unsecured claims from creditors, $7.47 million, as part of a player participation agreement. However, Rahm is reportedly still owed more than $100 million from the nine-figure contract he signed ahead of LIV’s 2024 season.
Here are the 10 players currently owed the most money, per the filing:
- Jon Rahm: $7.47 million
- Bryson DeChambeau: $5.77 million
- Dustin Johnson: $5.49 million
- Cam Smith: $4.83 million
- Adrian Meronk: $4.43 million
- Tyrrell Hatton: $3.37 million
- Bubba Watson: $3.32 million
- Abe Ancer: $2.65 million
- Byeong Hun An: $1.81 million
- Brooks Koepka: $1.68 million
IMG Media is the vendor owed the most money, $3.2 million. Other non-players listed include: GSE Worldwide, which is DeChambeau’s agency ($1.28 million); golf influencer Rich Shiels ($1.39 million); the state of Louisiana ($1.22 million); and Fresh Tape Media ($1.2 million), which has sued LIV over unpaid invoices.
LIV’s Future
LIV also revealed new details about its plans for a “2.0” version of the league in 2027.
The league intends to expand its field sizes to 75 players per event, up from roughly 57 this past season, and add Monday qualifiers to create new player pathways onto the circuit. The goal is to play events across five continents in places like Australia, South Africa, Mexico, England, Hong Kong, and the U.S.
LIV intends to resume competition next year, but no definitive decisions regarding the 2027 schedule or individual events have been announced.
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