LIV Golf filed for Chapter 11 bankruptcy protection in the federal district court of New Jersey, with $45 million owed to players who are now free to leave the organization, according to latest reports. The move was widely expected after the Public Investment Fund of Saudi Arabia abruptly ended its financial support this year. The final event was held last month in Indiana, and four vendors have already filed lawsuits due to unpaid obligations. The bankruptcy filing suspends LIV's obligations to creditors, allowing time to coordinate debts or sell off business elements. As reported by BBC Sport, the filing was made on Tuesday, with LIV stating it was filed to "preserve the company's business" as it attempts to restructure after Saudi Arabia withdrew its multibillion-dollar funding.
LIV Golf has agreed to a restructuring plan with BC Partners as the primary source of capital, as reported by BBC Sport. The company listed between $100 million and $500 million in estimated assets and $500 million and $1 billion in liabilities. The PIF has agreed to provide $49.6 million in debtor-in-possession financing through a DIP credit agreement, subject to court approval. BC Partners and other minority investors will provide exit financing as LIV attempts to continue operations. The Saudi-backed breakaway tour invested £4 billion since its launch in 2022 on signing stars such as Bryson DeChambeau and Jon Rahm through hugely lucrative contracts, bonuses and prize money. In a letter to fans outlining the "next phase," LIV confirmed international investment firm BC Partners as its proposed new investor, stating the process provides "the time and framework to address previous financial obligations and complete a transaction that will make the league's next phase a reality."
The bankruptcy filing means players owed at least $45 million collectively will be permitted to leave LIV Golf, with contracts under the initial iteration ending due to the court filing. Jon Rahm leads the creditor list with an unsecured claim of $7.5 million, followed by Bryson DeChambeau ($5.7 million), Dustin Johnson ($5.5 million), Cameron Smith ($4.8 million), and Tyrrell Hatton ($3.4 million). Brooks Koepka, who left to re-join the PGA Tour in January, has an unsecured claim of $1.7 million. CEO Scott O'Neil announced plans for LIV Golf 2.0, featuring players as majority owners in a reduced schedule, though no definitive decisions regarding the 2027 schedule or individual events are being announced at this time. As reported by BBC Sport, sources indicate there is no obligation on players to sign on to LIV 2.0, regardless of whether they had previously signed multi-year contracts with LIV Golf. Speaking before the Irish Open, Rahm indicated he's 'more than willing to fulfil' his LIV 1.0 contract, stating "There's just a lot of things in place, right? There's a lot of things that could happen and it's one of those things where time's gonna tell."
The bankruptcy filing listed Jon Rahm, Bryson DeChambeau, Dustin Johnson, Cameron Smith, and Tyrrell Hatton as the leading creditors, with Rahm owing nearly $7.5 million in unsecured claims, as reported by BBC Sport. Of the top 30 creditors, 14 were players. A source familiar with the figures told BBC Sport that the creditor list outlines the "amount owed and not paid for Q3" of 2026, not the full amounts. The state of Louisiana is listed among the largest creditors at $1.22 million, with LIV postponing its Louisiana event after PIF announced ending support. Brooks Koepka, who left to re-join the PGA Tour, has an unsecured claim of $1.7 million despite his departure. Other high-profile names expected to call time on their LIV adventure include Tyrrell Hatton and Bubba Watson.
LIV Golf intends to emerge from bankruptcy and begin its new version as early as 2027, according to BBC Sport. The PGA Tour has banned players for one year from their most recent LIV Golf appearance, with Brooks Koepka being the first to return under penalty. PGA Tour CEO Brian Rolapp offered similar deals to Rahm, DeChambeau, and Smith, but none accepted. The excessive spending before PIF's April withdrawal topped more than $5 billion in signing bonuses to lure top PGA Tour players. In a significant shift from the free-spending days of LIV 1.0, the new league will be "built around a sustainable business model" with players receiving equity and individual commercial rights to give them greater earning potential. Prize money will be set at levels lower than PGA Tour events but higher than DP World Tour events. LIV Golf chief executive Scott O'Neil stated: "This process gives us the structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf – one built around the fans, an innovative, player-first ownership model, and a part of the global golf ecosystem. We are excited about what lies ahead and yet, there is still much to accomplish in the months ahead."
