LIV Golf Enters Chapter 11 to Pivot to Player-First Model After Saudi Funding Ends
LIV Golf has filed for Chapter 11 bankruptcy in New Jersey to restructure its operations after the Saudi Public Investment Fund withdrew long-term support. The league agreed to a deal with BC Partner Advisors LP, which includes a $49.6 million financing package to keep the business running during proceedings. The restructuring aims to shift ownership to the players and create a sustainable model, though court approval is still required.
Key points
- LIV Golf filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey.
- The league entered a restructuring support agreement with BC Partner Advisors LP, the credit arm of private equity firm BC Partners.
- The Saudi Public Investment Fund agreed to provide $49.6 million in bankruptcy financing to allow LIV to operate during the proceedings.
- The proposed deal, pending court approval, expects the venture to be majority owned by its players.
- LIV had previously launched an investor roadshow to raise up to $350 million to fund operations after the PIF funding cliff.
Background
LIV Golf had been positioned as a rival to the PGA Tour, attracting high-profile athletes with large paychecks. Although the league agreed to merge with the PGA Tour in 2023, the deal has not yet materialized. Recent months saw LIV face a funding cliff as the Saudi Public Investment Fund prepared to pull support at the end of the 2026 schedule, prompting the league to seek new investment and restructure its model.
Why it matters
The bankruptcy filing marks a critical transition for LIV Golf from a state-backed venture to a player-owned entity. The restructuring could determine the future of the league's competitive structure, financial sustainability, and its relationship with the broader golf ecosystem, including the PGA Tour and DP World Tour.
What to watch
LIV Golf must secure court approval for the proposed bankruptcy deal. The league remains in advanced talks with players regarding the new ownership model. BC Partners Credit and other minority stakeholders are expected to provide financing after the exit from bankruptcy protection.
- LIV Golf files for Chapter 11 bankruptcy CNBC
- LIV Golf Files for Bankruptcy—and Owes Top Golfers Millions WSJ
- LIV Golf Files for Bankruptcy With Post-Saudi Future Uncertain Bloomberg.com
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- LIV Golf Takes Strategic Action to Secure Its Next Era LIV Golf
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