LIV files for bankruptcy protection ahead of BC Partners-backed relaunch
Court documents show that breakaway golf league owes at least US$45m to players.
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- IMG among list of creditors with biggest unsecured claims
- PIF withdrawing financial support after spending US$5bn on breakaway tour
- LIV Golf 2.0 hopes to relaunch next year
LIV Golf has filed for Chapter 11 bankruptcy protection in the US, owing at least US$45 million to players, as it seeks to recapitalise ahead of a relaunch as a player-owned entity next year.
It is understood that the move allows LIV to hold talks with its biggest stars about staying with the breakaway golf league beyond this season, though those players also now have the option to leave.
Court documents filed with the US Bankruptcy Court of New Jersey on 8th September show a list of creditors with the 30 largest unsecured claims, topped by Spanish golf star Jon Rahm, who is owed US$7.5 million.
The list also includes vendors who have provided services to LIV, including agency giant IMG, with an unsecured claim of US$3.2 million.
Chapter 11 is seen as a necessity to ensure LIV remains a going business concern, allowing the organisation to settle with creditors. The filing also revealed LIV has up to US$1 billion in liabilities. The organisation is also seeking recognition of the legal proceedings in England and Wales, where LIV’s international operation is based.
Saudi Arabia’s Public Investment Fund (PIF) confirmed earlier this year it would withdraw financial support for LIV at the end of the 2026 season, tasking the league with finding a backer for a venture that has swallowed US$5 billion since 2021.
BC Partners, itself a backer of sports agency and golf specialist GSE Worldwide, which represents several LIV participants, will lend its support to a more streamlined competition known colloquially as ‘LIV Golf 2.0’.
The PIF has also agreed to provide US$49.6 million in debtor-in-possession (DIP) financing to support LIV’s restructure.
The huge contracts and prize funds that were designed to lure players away from the PGA and DP World Tours are unsustainable without a state sponsored investor whose return on investment can be measured beyond conventional financial metrics.
Previous reports suggest LIV Golf 2.0 will comprise a far less lucrative ten-event competition that retains the team-based structure, with players given stakes in individual franchises as opposed to large, guaranteed sums. Indeed, players will own up to half of the business, allowing them to benefit from any future financial windfall.
In a new letter to fans, LIV Golf chief executive Scott O’Neil teased that the new format would also include an expanded field of 75 players and introduce a cut.
“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,” O’Neil said in a statement. “We are excited about what lies ahead and yet, there is still much to accomplish in the months ahead.”
LIV Golf may have to face the future without its star players who will be free to leave without penalty now that their lucrative contracts will not be honoured. But without a clear path for players to return to rival tours, LIV may be hopeful that it can offer enough to retain their services – especially if they share O’Neil’s confidence that significant value can be generated by individual franchises.
There is an argument that a retooled LIV, shorn of the sportswashing controversies of its nation-building origins, can resonate with a fast-emerging golf audience.
The most recent edition of The R&A Global Golf Participation Report found more players than ever before: 64.1 million adults and 43.1 million juniors across 148 countries. But most of them, including 80 per cent of the juniors, enjoy non-traditional forms of the game.
This has come alongside an explosion of interest through the 2020s on social media – particularly YouTube – with many recent converts exploring the game by following creators and current and former pros, as well as consuming tips, equipment reviews, and travelogues.
LIV will hope to captalise on this demand by offering something different from the established tours, while it has also found some success in underserved territories like Australia, South Korea and South Africa, suggesting there are new markets to focus on.
Yet the fundamental issue is that even if a reinvented tour can be engineered to meet the needs of those audiences, it will still need players for prospective fans to watch. In an age where it can no longer simply outbid rivals for talent, it must reach an accommodation with the other tours.
There is also the question of whether LIV’s team-based format can be enough of a unique selling point to attract both viewers and investors – both of which will be crucial if it is to have chance of success.
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