On May 20, major international news outlets including Bloomberg and Reuters reported that "LIV Golf is exploring various options, including seeking new investors, but is preparing for the possibility of the tour collapsing by the end of the season in August."
Bloomberg also noted that LIV Golf is considering relocating its headquarters to the U.S. to take advantage of more favorable bankruptcy laws.
The consideration of a bankruptcy filing in the U.S. is linked to the country's 'Chapter 11' bankruptcy law, which allows companies to restructure their finances and continue operations without fully dissolving. This move is seen as an effort to find a path to recovery while preventing complete dissolution of LIV Golf.
Launched in 2022 to challenge the PGA Tour's monopoly, LIV Golf has attracted top players worldwide with astronomical signing bonuses and prize money, backed by the Saudi Public Investment Fund (PIF). Over four years, it has spent more than $5 billion (approximately 7.54 trillion won) on player transfer fees and operational costs.
However, disappointing commercial performance has hindered its success. The tour has faced difficulties generating additional revenue, such as broadcasting rights, due to poor television ratings in the U.S., leading to cumulative losses exceeding $1 billion (approximately 1.51 trillion won). Consequently, PIF announced last month that it would cease funding after the current season.
As bankruptcy rumors surfaced, LIV Golf has sought to clarify its position. A spokesperson for LIV Golf stated in response to Bloomberg's report, "We are focused on finding long-term strategic partners, and discussions are just beginning."
* This article has been translated by AI.
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