LIV Golf at a crossroads after Saudi funding exit; what happens next? | Business

The men’s professional golf league, i.e., LIV Golf, has found itself in a pickle after its principal sponsor, Saudi Arabia’s Public Investment Fund (PIF), opted to end its financial backing of the league after the 2026 season.

The league, in response, has filed for Chapter 11 bankruptcy protection in New Jersey, beginning a court-supervised restructuring aimed at keeping the Saudi-backed league alive while preparing for a new version in 2027.

LIV has reported assets of between $100 million and $500 million and liabilities of between $500 million and $1 billion as a result of its rapid push to make the tour as big as possible, as soon as possible. The league now plans to restructure with BC Partners and move towards a player-first ownership model.

What is LIV Golf?

LIV Golf is a professional men’s golf league that was launched in 2022 with financial backing from Saudi Arabia’s Public Investment Fund. It was established as a rival to the existing professional golf structure led by the PGA Tour and DP World Tour.

The league attracted several of the sport’s biggest names, including Jon Rahm, Bryson DeChambeau, Dustin Johnson, Cameron Smith, Brooks Koepka and Phil Mickelson, with lucrative contracts and signing bonuses.

LIV initially built its identity around 54-hole tournaments, team-based competition and large financial purses. Its emergence created a major split in professional golf, with players joining LIV facing restrictions and suspensions from the PGA Tour.

Why has LIV Golf filed for bankruptcy?

LIV’s Chapter 11 filing follows the decision by the Saudi Public Investment Fund to end its financial support for the league after the 2026 season.

PIF had been the financial foundation of LIV since its launch and had invested more than $5 billion in the circuit. According to the bankruptcy filing, PIF owns 100 per cent of LIV Golf’s equity.

The withdrawal of that backing left LIV looking for a new financial structure and investors. The league had already begun reducing its operations, including staff cuts, while seeking fresh capital. Rather than shutting down, LIV is using Chapter 11 to reorganise its finances and seek new investment.

How much does LIV Golf owe?

LIV’s bankruptcy petition estimates its assets at between $100 million and $500 million, while its liabilities are listed at between $500 million and $1 billion.

Several of the league’s leading players appear among its largest unsecured creditors. Jon Rahm is listed as being owed nearly $7.5 million, while Bryson DeChambeau and Dustin Johnson are also owed more than $5 million each.

Fourteen players are among LIV’s top 30 creditors. The amounts listed in the filing represent unsecured claims and do not necessarily reflect the full value of the players’ remaining contracts.

The state of Louisiana is also listed among the major creditors, with a claim of $1.22 million.

What happens to LIV Golf during bankruptcy?

LIV has entered into a restructuring support agreement with BC Partners Advisors, the credit business of BC Partners. The proposed transaction is designed to recapitalise the league and move it towards a player-first ownership structure.

The Saudi PIF has also agreed to provide $49.6 million in debtor-in-possession financing, subject to approval by the bankruptcy court.

BC Partners and potential minority investors are expected to provide exit financing once LIV emerges from Chapter 11. LIV is also seeking recognition of its US bankruptcy proceedings in England and Wales to protect the value of its international assets and operations.

What is LIV Golf 2.0?

LIV CEO Scott O’Neil has outlined plans for a new version of the league, often referred to as “LIV Golf 2.0”, which would be smaller and structured differently from the original Saudi-funded model.

One of the major proposed changes is an expansion of the field from 57 to 75 players. The new format would also introduce a 54-hole cut, meaning players would have to survive the cut to continue competing. Monday qualifying events are also planned, creating another route for golfers to enter the league.

The team concept is expected to remain central, but teams could increasingly be organised around nationalities.

O’Neil has also said LIV intends to continue operating in some of its more successful international markets, including Australia, South Africa and Asia.

When could LIV Golf return?

LIV intends to complete its restructuring and emerge from Chapter 11 in early 2027. Its proposed restructuring remains subject to approval by the bankruptcy court and other relevant stakeholders.

The exact 2027 schedule, tournament structure and final ownership arrangements have yet to be fully determined. The future of LIV’s current roster is also a major question. The proposed player-first model depends in part on which golfers remain with the league and participate in the new ownership structure.

What happens to LIV’s biggest stars?

The bankruptcy creates uncertainty around some of the biggest names who joined LIV after leaving the PGA Tour.

Rahm, DeChambeau, Dustin Johnson and Cameron Smith are among the leading creditors named in the bankruptcy filing. Their future with the reorganised league remains unclear.

Rahm has said he remains willing to fulfil his existing LIV contract, although the restructuring could affect the terms and future structure of those agreements.

The status of the players is particularly significant because LIV’s proposed new model is expected to give players a majority ownership stake.

Can LIV players return to the PGA Tour?

The future of LIV’s players is also linked to their relationship with the PGA Tour.

Players who left the PGA Tour for LIV have faced sanctions and restrictions when attempting to return. Brooks Koepka became the first LIV player to return under a penalty arrangement that included a $5 million charitable payment, restrictions on equity grants and the loss of certain bonus opportunities for the year of his return.

PGA Tour CEO Brian Rolapp subsequently offered similar terms to Rahm, DeChambeau and Smith, but none accepted them.

With LIV now restructuring, the possibility of players returning to established tours remains an important issue. However, the terms of any future return will depend on individual contracts, PGA Tour rules and developments during the bankruptcy process.

Why did LIV become financially unsustainable?

LIV’s original model required significant spending to establish the league and attract established players from the PGA Tour.

The circuit used major signing bonuses and contracts to bring in some of the biggest names in golf, while also funding substantial individual and team prize purses.

PIF’s investment in LIV exceeded $5 billion after the league’s 2022 launch.

That financial backing allowed LIV to build a global schedule and compete directly with the PGA Tour. But once PIF decided to stop funding the league beyond 2026, LIV needed to find a different financial model.

The restructuring is intended to address those legacy financial obligations and create a structure that can operate with new investors and greater player involvement.

What happened to LIV’s 2026 schedule?

LIV’s financial problems had already affected its 2026 calendar. The league postponed its event in Louisiana after PIF announced its decision to end financial support. An event in Michigan was also cancelled, while the team championship was merged into the final event in Indiana.

Those changes came as LIV reduced its operations and sought new funding ahead of the bankruptcy filing.

The final event of the existing LIV format was held in Indiana last month, bringing the current version of the league to a close as it prepares for the restructuring process.

What is the future of LIV Golf?

LIV’s stated objective is to emerge from bankruptcy as a more sustainable league with a new ownership and operating structure.

BC Partners is expected to play a central role in providing capital, while players could become majority owners of the reorganised business. PIF will provide temporary financing during the Chapter 11 process but is no longer expected to serve as LIV’s long-term financial backer.

The proposed 2027 version would have a larger 75-player field, a 54-hole cut, Monday qualifiers and nationality-based teams, while retaining selected international markets.

Whether LIV can retain its leading players, complete the proposed financing and secure approval for its restructuring will determine what the league ultimately looks like when it attempts to return in 2027.