LIV Golf files for bankruptcy protection

LIV Golf, the tour that has spent billions of dollars poaching top players from the PGA and has caused bitter controversy in the sport, filed for bankruptcy protection Thursday.

The lawsuit, filed in New Jersey court, states that the organization, which lost its wealthy Saudi investors earlier this year, intends to restructure and return in a new form, although the fate of star players including Bryson DeChambeau and Jon Rahm remains unclear.

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“This process gives us the structure and time to complete a landmark transaction and begin the next chapter of LIV Golf,” said CEO Scott O’Neill, whose organization already laid off most of its staff earlier this month.

LIV remains committed to returning in a new form next year, “built around fans, an innovative player-centric ownership model and part of the global golf ecosystem,” O’Neill said.

But “no final decisions regarding the 2027 schedule or individual events are being announced at this time,” LIV said in a statement.

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Launched in 2022, the LIV free spending program lost support from the Saudi Public Investment Fund (PIF) earlier this year.

The Middle East fund put about $5 billion into the tour before abruptly pulling the plug.

PIF will now provide a loan of approximately $50 million for the bankruptcy and reorganization process, LIV said in a statement.

LIV star players Rahm, DeChambeau and Dustin Johnson have the largest unsecured claims against the tour, totaling more than $5 million each.

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Court documents reviewed by AFP showed LIV owed up to $1 billion to at least 1,000 creditors.

LIV has entered into a partnership with British investment group BC Partners as part of its restructuring efforts, according to the documents.

LIV Golf is also seeking recognition of the US bankruptcy filing in England and Wales to protect its international assets and operations.

Tour officials previously promised that a “2.0” version of the tour would reappear next season under the leadership of new investors, with a shorter schedule and reduced prize pools.

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Much will depend on whether the top stars, including DeChambeau and Rahm, remain.

Multiple media outlets have reported that players’ contracts with LIV Golf will be terminated as a result of the bankruptcy, allowing them to decide whether to continue the tour in a new form or pay off their debts.

Tuesday’s statement said the “Company continues to engage in discussions with” the players, including “creating an ownership structure that aligns the interests of the players with the long-term success of the League.”

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LIV did not immediately respond to AFP’s request for comment on the matter.

Widespread reports have linked several LIV stars to potential returns to the PGA Tour and other series, although the PGA has said it has no current plans to offer LIV players a path back.

AMZ/RCW