LIV Golf, which once disrupted the PGA Tour with substantial funding from Saudi Arabia, has filed for bankruptcy protection. The league is facing financial difficulties after the Saudi Public Investment Fund (PIF) withdrew its support.
According to Yonhap News, LIV Golf submitted its Chapter 11 bankruptcy filing to a court in New Jersey on September 9. Chapter 11 allows companies to restructure their debts under court supervision while continuing operations.
AP reports that LIV Golf's debt exceeds $500 million. Court documents estimate its assets between $100 million and $500 million, with liabilities ranging from $500 million to $1 billion. Four companies that have not received payments have already filed lawsuits against LIV.
Alongside its bankruptcy filing, LIV announced plans for a restructuring with new investors. According to AP, British investment firm BC Partners will play a key role in funding LIV's restructuring efforts. The PIF has also agreed to provide $49.6 million in debtor-in-possession financing, pending court approval.
LIV aims to maintain its league while transforming into a new format. CEO Scott O'Neil stated in a letter to fans that this process is aimed at creating a “stronger and more sustainable future,” assuring that tournaments will continue.
In upcoming events, the number of players will increase from 57 to 75, and for the first time, a cut will be applied in 54-hole tournaments. A qualifying system will also be introduced on Mondays. While the team-based format will remain, LIV plans to focus on proven markets such as Australia, South Africa, and Asia. The league aims to launch its new iteration, dubbed 'LIV 2.0,' by 2027.
However, the retention of star players remains a critical factor. According to AP, key players such as Jon Rahm, Bryson DeChambeau, Dustin Johnson, and Cameron Smith are listed as major creditors in the bankruptcy filing. Among the unpaid debts, Rahm's amount is the highest at approximately $7.5 million.
Rahm and DeChambeau's future with LIV is seen as a significant variable. In a recent interview with the BBC, Rahm stated, “I am still under contract with LIV 1.0 and intend to fulfill it,” but added that “time will tell” regarding his future.
Since its launch in 2022, LIV has attracted numerous players from the PGA Tour by offering substantial signing bonuses and prize money. AP reports that LIV has spent over $5 billion since its inception. However, the league has faced a sharp decline after the PIF decided to halt its support this year.
Once launched with the ambition to 'change the game of golf,' LIV now finds itself in a position of downsizing for survival, raising questions about how it will compete or coexist with the PGA Tour post-bankruptcy.
* This article has been translated by AI.
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