LIV Golf, the professional golf league backed by Saudi Arabia’s Public Investment Fund (PIF), filed for Chapter 11 bankruptcy protection in New Jersey on Tuesday, marking a significant turning point four years after it shook up the sport with an unprecedented influx of capital. According to court documents, the league faces liabilities estimated between $500 million and $1 billion, with assets valued between $100 million and $500 million, and is seeking financial restructuring amid ongoing operational challenges.
Since its launch in 2022, LIV Golf attracted several top-tier players from the established PGA Tour by offering lucrative guaranteed contracts and prize money. However, the league consistently operated at a loss, with Saudi Arabia investing more than $5 billion before deciding this year to withdraw its financial support. The sudden end to PIF funding forced LIV into financial distress, leading to canceled tournaments, unpaid bills, and mass layoffs earlier this year.
Notably, many of the league’s highest-paid players have become its principal creditors in bankruptcy proceedings. Two-time major champion Jon Rahm is listed as the largest individual creditor, reportedly owed $7.4 million under his existing contract. Other prominent players, including Bryson DeChambeau and Dustin Johnson, also appear among the top creditors according to the bankruptcy filing.
Despite the financial turmoil, LIV Golf is pursuing a potential restructuring with support from British investment firm BC Partners and other investors. PIF has extended a $49.6 million loan to finance the bankruptcy process, while LIV’s chief executive, Scott O’Neil, expressed optimism about the league’s future. O’Neil highlighted plans for a “LIV 2.0” model, aiming to shift from large guaranteed payouts to a structure where players hold majority ownership stakes and receive equity in the league.
“We believe deeply in LIV Golf’s future,” O’Neil said, framing the chapter 11 filing as a means to gain time to secure a landmark transaction and relaunch the league.
The bankruptcy filing follows a turbulent period characterized by sustained legal and reputational battles. LIV Golf initially attracted controversy for its connections to Saudi Arabia, particularly amid scrutiny over the murder of journalist Jamal Khashoggi and broader concerns about sportswashing. The league’s debut sparked sharp criticism from golfing figures, including Tiger Woods and PGA Tour commissioner Jay Monahan, who labeled LIV a “foreign monarchy” attempting to dominate the sport through financial might.
In a surprising development in 2023, the PGA Tour and LIV’s backers agreed to halt their legal disputes and explore cooperation, prompting a U.S. Senate hearing due to the deal’s geopolitical and sporting implications. However, no lasting merger was achieved, and LIV struggled to build a sustainable fan base, an issue that contributed to its financial difficulties.
While LIV Golf intends to continue operations beyond 2026 under its new model, uncertainty remains over whether key players like Rahm and DeChambeau will embrace a reduced role or return to established tours, a move that could further undermine the league’s viability.
This bankruptcy filing effectively closes a volatile chapter in professional golf’s history, highlighting the challenges of launching a competing league in a traditionally stable but evolving global sport.