LIV files for bankruptcy protection with over $45m owed to players

LIV Golf filed a Chapter 11 bankruptcy petition in a New Jersey federal court on Tuesday, seeking protection as it restructures after Saudi Arabia’s Public Investment Fund withdrew its multibillion‑dollar backing. The filing reveals the league owes more than $45 million (£33 million) to current and former players, with two‑time major champion Jon Rahm leading the list with an unsecured claim of $7.5 million (£5.5 million). Other top creditors include Bryson DeChambeau ($5.7 million), Dustin Johnson ($5.5 million), Cameron Smith ($4.8 million) and Tyrrell Hatton ($3.4 million), while Brooks Koepka, who rejoined the PGA Tour in January, holds a $1.7 million claim. The petition estimates LIV’s assets at $100‑$500 million (£74‑£370 million) against liabilities of $500 million‑$1 billion (£370‑£739 million). A “debtor‑in‑possession” loan of $49.6 million (£36.6 million) from the PIF will fund the restructuring, and the league has identified international investment firm BC Partners as a prospective new backer.

The bankruptcy filing gives players the option to leave the league, as contracts from the original LIV Golf iteration are expected to be terminated through the court process. While the Chapter 11 case allows LIV to negotiate a future player‑owned league slated to launch early next year, there is no obligation for players to sign on to the proposed “LIV 2.0” structure, even if they previously signed multi‑year deals. A source noted that the creditor list reflects amounts owed for the third quarter of 2026, not the total sums, and it remains unclear when former LIV players might be free to discuss opportunities with other tours. The move marks a stark shift from the league’s 2021 launch, which was fueled by more than $5 billion (£3.7 billion) from the PIF and attracted top talent with lucrative contracts and large prize pools.

LIV Golf’s chief executive Scott O’Neil expressed confidence that a “critical mass” of players will materialise for the new, player‑first model, emphasizing a sustainable business built around equity stakes and the return of individual commercial rights to participants. In a letter to fans, the league said the restructuring will enable a “landmark transaction” and a next phase that integrates the sport into the global golf ecosystem while offering lower purses than the previous high‑spending era. Players such as DeChambeau have spoken optimistically about the potential for a “fun” new format, whereas Rahm remained non‑committal, noting he still holds a contract with the original LIV entity but that “time will tell.” The PIF’s withdrawal was justified by a misalignment with its long‑term strategy, though it reiterated a continued commitment to broader sports investments. As LIV navigates the bankruptcy court, its future hinges on securing the BC Partners deal, finalising the equity‑based ownership structure, and convincing enough top golfers to join the reimagined league, which could reshape professional golf’s competitive landscape.

⚡ Effects Interpreter