LIV Golf Files for Bankruptcy, Owes Players Over $45 Million

LIV Golf has filed for Chapter 11 bankruptcy protection with over $45 million owed to current and former players, including Jon Rahm ($7.5 million) and Bryson DeChambeau ($5.7 million). The move follows the withdrawal of funding from Saudi Arabia’s Public Investment Fund (PIF) in April, which had invested an estimated $5 billion to $8 billion in the league since its 2021 launch. While the PIF provided $50 million to aid in the bankruptcy process, LIV Golf is now pursuing a restructuring plan dubbed “LIV 2.0,” backed by London-based private equity firm BC Partners. This plan proposes a majority player-owned league launching in 2027, with a format resembling the traditional PGA Tour model. Existing player contracts are expected to be voided through the court process, though players are not obligated to participate in the new league. The bankruptcy filing allows LIV Golf to begin discussions with players about their future involvement.

Axios noted the failure of LIV Golf to establish a viable business model as a key factor in the bankruptcy. Fox News reported that the withdrawal of Saudi funding was partly due to financial pressures from regional conflicts. The Washington Times indicated that the restructuring aims to revive the league on a smaller scale, with liabilities estimated between $500 million and $1 billion, against assets of $100 million to $500 million. ESPN highlighted the substantial debts owed to top players, while Sky News simply reported the bankruptcy filing itself.

Where they differ

• Fox News emphasized the geopolitical context of Saudi Arabia’s funding withdrawal, citing regional conflicts as a contributing factor.
• Axios framed the bankruptcy as a consequence of LIV Golf’s failure to develop a sustainable business model.
• The Washington Times focused on the scale of the restructuring and the league’s attempt to operate with reduced funding.
• BBC and ESPN concentrated on the financial implications for players, detailing the amounts owed to top creditors.

What is not yet known

• The timeline for when players will be able to enter negotiations with other tours remains uncertain.
• The full details of the restructuring plan and the extent of BC Partners’ investment are still developing.

Was this useful? 👍 0 👎 0

---

Read the original coverage