LIV Golf has filed for Chapter 11 bankruptcy in New Jersey as the Saudi-backed golf league seeks to restructure its business and secure a new financial future.
Why LIV Golf filed for bankruptcy
The league filed for bankruptcy on Tuesday. It plans to use a $49.6 million bankruptcy loan from Saudi Arabia’s Public Investment Fund (PIF) to support its operations during the restructuring.
According to its Chapter 11 petition, LIV Golf has liabilities between $500 million and $1 billion. It also has between $100 million and $500 million in assets.
The bankruptcy comes as LIV Golf prepares for a major change in its funding. PIF said in April that further investment in the league no longer matched its strategy. The fund plans to stop funding LIV after the 2026 season.
PIF currently owns 100% of LIV Golf. It has invested more than $5 billion in the league since its launch in 2022.
LIV Golf’s new ownership plan
LIV Golf used huge signing bonuses to attract major players from the PGA Tour. Its biggest names include Bryson DeChambeau, Jon Rahm and Dustin Johnson.
The three golfers are also LIV Golf’s top three unsecured creditors. Each is owed more than $5 million, according to the bankruptcy petition.
LIV Golf said the Chapter 11 process will help it remain in business while it moves to a player-first ownership model.
BC Partners Advisors L.P. will support the league as a new backer. The company and other potential minority investors are expected to provide exit financing. They will also support LIV Golf’s debt restructuring.
“We believe deeply in LIV Golf’s future, the opportunity in front of us, and the people who will help us realise it,” LIV Golf CEO Scott O’Neil said in a statement.
LIV Golf targets 2027 exit
The league had already taken steps to reduce its costs. LIV Golf laid off most of its workforce in August as it searched for new funding.
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