LIV Golf has sought Chapter 11 bankruptcy protection in New Jersey, facing over $500 million in debt as it aims to relaunch the league without financial backing from Saudi Arabia. The move comes after the sudden withdrawal of funding by the Public Investment Fund of Saudi Arabia earlier this year, following the conclusion of the last event in Indiana. Several vendors have already taken legal action due to unpaid dues.
LIV Golf has announced a restructuring plan with BC Partners as its primary source of capital, with CEO Scott O’Neil expressing optimism about the process. O’Neil envisions a revamped “LIV Golf 2.0” model where players will have majority ownership, a condensed schedule, expanded field size, and new features like Monday qualifiers and a team-based structure around nationalities.
While the new iteration of LIV Golf aims to build on past successes in markets like Australia, South Africa, and Asia, it falls short of the grand promises made during its launch in 2022, characterized by lavish spending that exceeded $5 billion before the funding halt. The fate of top players like Jon Rahm and Bryson DeChambeau, who were listed as major creditors in the bankruptcy filing, remains uncertain.
With assets estimated between $100 million and $500 million and liabilities ranging from $500 million to $1 billion, LIV Golf faces challenges in its financial restructuring. The league has secured $49.6 million in debtor-in-possession financing from the Public Investment Fund, subject to court approval, as it navigates the bankruptcy process.
BC Partners L.P. and potential minority investors are poised to provide exit financing for LIV Golf’s recovery efforts, aiming to emerge from bankruptcy and launch the revamped league by 2027. The journey ahead for LIV Golf hinges on player retention and navigating restrictions imposed by the PGA Tour on returning players, signaling a critical phase for the league’s future viability.
