LIV Golf has filed for Chapter 11 bankruptcy protection in the District of New Jersey as part of a plan to restructure and relaunch the league under a new business model, according to court documents filed this week. The filing marks a major development in LIV’s effort to stabilize its finances and reshape its future amid mounting liabilities and the loss of key funding.
The league, which launched in 2022 with financial backing from the Public Investment Fund of Saudi Arabia (PIF), revealed for the first time the identity of a lead investor involved in the restructuring: BC Partners Advisors’ credit division. The PIF, which announced in April that it was withdrawing funding due to the league’s ongoing financial challenges and external geopolitical factors, has agreed to provide $49.6 million in debtor-in-possession financing to support LIV throughout its bankruptcy proceedings.
The financing arrangement includes strict milestones LIV must meet to continue receiving funds. Among these, the league must finalize an investment agreement with BC Partners, according to a source familiar with the matter who spoke on condition of anonymity. LIV estimates its assets to be valued between $100 million and $500 million, while its liabilities range from $500 million to $1 billion, reflecting significant contractual obligations, including multiyear player deals that it may not be able to fulfill.
LIV’s top unsecured creditors include star players Jon Rahm and Bryson DeChambeau, owed approximately $7.4 million and $5.7 million respectively in unpaid past-due amounts. The claims are tied to third-quarter payments rather than future guaranteed income due under multiyear contracts. DeChambeau’s claim is marked contingent on an unidentified future event, and Dustin Johnson’s $5 million-plus claim is both contingent and disputed, signaling ongoing disagreements over payment amounts. Among the top 30 creditors is Brooks Koepka, who is owed over $1 million.
The bankruptcy filing follows a series of setbacks for the league, including the cancellation of its Team Championship in August and plans to lay off most staff members effective Sept. 1. Chapter 11 will allow LIV to reevaluate and potentially reject existing player contracts, a tool frequently used in bankruptcy cases to shed unprofitable commitments. Players whose contracts are rejected would become free agents but also unsecured creditors for unpaid amounts, which are typically recovered at a fraction of their total value.
LIV chief executive Scott O’Neil has framed the bankruptcy as an opportunity to pursue a “landmark transaction” and reshape the league with a player-first ownership model. O’Neil indicated that the revived LIV, sometimes referred to as LIV 2.0, would feature an expanded field of 75 players, introduction of a cut during tournaments, Monday qualifiers, and teams aligned with national identities. The revamped league aims to be integrated into the global golf ecosystem rather than compete with established tours.
Despite these ambitions, the broader professional golf community remains hesitant. The DP World Tour has resumed imposing fines and suspensions on players participating in LIV events, underscoring ongoing tensions between the new league and traditional tours. The bankruptcy filing occurred less than a month after a LIV event in Portland, Oregon, which raised questions about the league’s ability to establish a mainstream following.
LIV had invested in global partnerships and planned a world tour with entertainment elements, but mounting expenses and the withdrawal of Saudi funding have prompted a significant strategic shift. The PIF declined to comment on the restructuring details, and the league faces a critical period ahead as it seeks court approval and attempts to stabilize its operations.