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LIV Golf Files for Bankruptcy Protection, Seeks New Form in 2023
Confirmed
In Short: LIV Golf has filed for Chapter 11 bankruptcy protection, aiming to restructure and return in a new form next year.
LIV Golf, the controversial breakaway tour that spent billions luring top players away from the PGA, has filed for bankruptcy protection. The move, announced by CEO Scott O'Neil, provides the organization with the structure and time to pursue a landmark transaction and begin a new chapter.
According to reports, the Public Investment Fund (PIF) will provide a loan worth nearly $50 million to fund the bankruptcy and reorganization process. O'Neil stated, 'This process gives us the structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf.
LIV Golf intends to return in 2023 as a majority player-owned league, built around the fans and an innovative ownership model. The organization is seeking recognition of the US bankruptcy filing in England and Wales to cover its international assets and operations.
Sources tell BBC Sport that contracts under the previous iteration of LIV Golf will finish because of this court filing, with amounts owed to players and other creditors addressed through the court process. PIF, which has invested over $5 billion in LIV Golf, has now stopped funding the league for the next season.
The restructuring process allows LIV Golf to start talking to players about their participation in the new league. However, there is no obligation on players to sign on to LIV 2.0, regardless of whether they had previously signed multi-year contracts with LIV Golf.
Scott O'Neil, CEO of LIV Golf, expressed confidence in achieving a 'critical mass' of players to make the new league a reality. He said, 'Thanks to their tireless work, LIV Golf has created a foundation to entertain and inspire the next generation of global golf fans around the world.
What's still developing
- However, it remains unclear when players would then be able to enter discussions with other tours. 'Time will tell' - Rahm on LIV Golf future Strained smiles and uncertainty - the strange end of LIV Golf 1.0 Saudi Arabia to stop funding LIV Golf next season Since LIV's controversial launch in 2021, more than $5bn (£3.7bn) has been spent by PIF, with major winners including Rahm and DeChambeau lured by lucrative contracts and vast prize money.
- PIF is providing a bankruptcy loan of $49.6m (£36.6m) - called 'debtor in possession' (DIP) financing - to help fund the process.
- When announcing its decision to withdraw funding, PIF said the "substantial investment required by LIV Golf over a longer term" was "no longer consistent" with its strategy.
- LIV Golf was founded in 2021, with its first season taking place the following year LIV Golf has filed for bankruptcy protection with at least $45m (£33m) owed to players, who will now have the option to leave.
- Documents in the petition outline money owed to LIV Golf's creditors with the 30 largest unsecured claims.