LIV Golf is actively working to re-sign players as part of a broader effort to restructure the league and launch a revamped season in 2027, according to court documents filed during its recent bankruptcy proceedings. The upstart golf league filed for Chapter 11 bankruptcy in New Jersey on Tuesday, revealing significant financial challenges and ongoing negotiations with investors.
Representing LIV Golf, attorney Matthew Williams of Gibson Dunn told U.S. Bankruptcy Judge Michael Kaplan that the league has received positive feedback from players regarding involvement in a proposed LIV 2.0. However, Williams cautioned that the process remains incomplete and uncertain.
LIV Golf secured a $50 million bankruptcy loan from its original financier, Saudi Arabia’s Public Investment Fund (PIF), and has reached a term sheet with private equity firm BC Partners to lead a $300 million investment in the restructured entity. The loan agreement specifies that a final deal with BC Partners must be finalized by early October or the restructuring will pivot toward winding down operations.
Under the proposed plan, current players would exchange their existing claims against LIV for equity stakes in LIV 2.0, alongside providing liability releases to the league. Those who agree to join the new structure, which is expected to be majority owned by players, could receive signing bonuses and regain rights to pursue individual endorsement deals tied to their name, image, and likeness—terms that had been partly restricted under the original LIV contracts.
Court documents indicate that BC Partners is interested in assuming approximately $5 billion in operational losses accumulated by LIV Golf, which could potentially be applied to offset future taxable income.
The bankruptcy filing laid bare the league’s financial difficulties. LIV Golf reported only $15 million in cash at the time of filing, despite an earlier infusion of $50 billion in equity from PIF since 2021 and an additional $500 million secured loan from PIF in 2023 intended to support completion of the 2026 season. Last fiscal year, LIV generated revenues slightly above $200 million, with corporate sponsorships accounting for about half of that total. Television rights contributed a mere 5% of the revenue despite the fact that tournament prize money paid to players—exclusive of signing bonuses—significantly exceeded that percentage.
LIV’s legal team attributed the league’s financial strain to PIF’s decision to halt funding just as LIV’s team-based global golf format was gaining traction. Williams emphasized the product’s potential, stating that the league features some of the world’s top golfers and that demand for the format continues to grow.
The court proceedings will determine whether LIV Golf’s restructuring plan proceeds, offering a path forward for the league, or whether a wind-down is imminent should the parties fail to meet the critical upcoming milestones.