The private equity firm BC Partners is set to provide up to $10 million in financing to support LIV Golf’s ongoing U.S. bankruptcy proceedings, aiming to address concerns about its commitment to relaunch the golf league. LIV Golf, which filed for Chapter 11 bankruptcy on September 8, had announced a preliminary rescue agreement with BC Partners that included a planned $300 million post-bankruptcy investment to launch a revamped “LIV 2.0” tour in 2027.

However, tensions have emerged between BC Partners, LIV Golf, and the Public Investment Fund (PIF) of Saudi Arabia. PIF, which was the primary backer of LIV Golf since its 2021 inception and had invested $5.5 billion, withdrew its major financial support earlier this year. It has committed $50 million toward bankruptcy funding but has expressed skepticism about BC Partners’ motivations. According to sources familiar with the talks, PIF suspects that BC Partners is primarily interested in acquiring LIV’s substantial net operating losses, estimated at around $5 billion. These losses could be leveraged to offset future taxable income, a strategy BC Partners has used in past acquisitions.

The recent $10 million loan from BC Partners is partly intended to reassure PIF about the firm’s genuine interest in maintaining and rebuilding the league. Despite the planned relaunch, several challenges remain. LIV Golf reportedly entered bankruptcy with approximately $400 million in outstanding player obligations. Notable golfers such as Jon Rahm and Bryson DeChambeau are among those owed money, complicating efforts to stabilize the league’s finances. Those involved have described discussions with players as “constructive,” and court filings indicate that players are being offered equity stakes in the new venture in lieu of owed payments, with potential for further earnings should they continue participating in LIV Golf events.

BC Partners’ deal initially required formal bankruptcy court approval proceedings to be initiated within days following the September 8 filing, but these deadlines have not been met. LIV Golf, PIF, and BC Partners have been engaged in extensive negotiations in recent days to determine a viable path through the bankruptcy process. PIF’s $50 million financing is earmarked primarily for winding down the existing LIV operations if no agreement is reached. Without a definitive reorganization plan filed within 30 days, the case is set to proceed toward an orderly wind-down.

One major sticking point is BC Partners’ request for its bankruptcy funding to be secured against some of LIV Golf’s tax-loss assets. The $10 million loan is intended to cover startup and hiring costs for the planned 2027 season, while PIF’s funds would support closure activities for the initial league. BC Partners was chosen as the league’s new backer due to its expressed interest in maintaining a streamlined international golf circuit. Other investment firms previously conducted due diligence on LIV but did not proceed.

LIV Golf has filed a motion seeking court approval to terminate existing player contracts, arguing that these agreements do not align with the compensation framework envisioned under the proposed LIV 2.0 structure. Since the bankruptcy filing, most players have remained silent, but Bryson DeChambeau and Australian golfer Cameron Smith have retained legal counsel in connection with the proceedings. A creditors’ committee, potentially including LIV players, is expected to be established by the bankruptcy court soon and may pursue claims against both LIV Golf and PIF, which held a 98.5% ownership stake before the bankruptcy.

PIF is reportedly seeking broad liability protections from players and vendors as part of any final resolution to its involvement in LIV Golf’s bankruptcy process. The future of the league remains uncertain as negotiations continue among the key stakeholders.