LIV Golf files for Chapter 11 bankruptcy with BC Partners restructuring deal

LIV Golf filed for Chapter 11 bankruptcy Tuesday in the New Jersey District U.S. Bankruptcy Court, seeking a court-supervised restructuring after the Saudi Public Investment Fund ended its funding this year. The filing comes with a restructuring support agreement from BC Partners Credit, a London- and New York-based firm exploring a recapitalization transaction.

LIV estimates its liabilities at between $500 million and $1 billion, against assets valued at between $100 million and $500 million, according to Front Office Sports. The bankruptcy and corporate restructuring are intended to preserve LIV's existence as the league attempts to transition to a new ownership model in which players become majority equity holders. The PIF has agreed to provide $49.6 million in debtor-in-possession financing to allow LIV to continue operating during bankruptcy proceedings.

Gene Davis, chairman of an independent board created after the PIF announced its exit, said LIV "reviewed all available options and believe today's actions reflect the most responsible path forward for the League and its stakeholders." CEO Scott O'Neil added: "This process gives us the structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf." LIV remains in advanced discussions with players about next steps, per the reporting.

The financial crisis reflects the league's relentless losses. LIV has run at a deficit for its entire existence, with net operating losses totaling approximately $5 billion as of the end of 2025. The PIF's total investment in LIV since the league's inception in 2021 and first season in 2022 is approximately $5 billion. The PIF announced in April it would stop funding LIV after the 2026 season, then in June informed the league it would provide a secured loan for the rest of the year's operations. As of September 8, that facility agreement had an outstanding balance of approximately $495 million; according to industry sources reported by Front Office Sports, it is unlikely the PIF expects to be repaid given LIV's financial limitations.

LIV canceled two events on the 2026 schedule, in Louisiana and Michigan, resulting in more than $60 million of lost prize money originally earmarked for players. LIV has just 41 full-time employees remaining after mass layoffs and $15 million in cash on hand.

Player contracts represent the largest claims against the bankrupt entity. According to the bankruptcy filing, golfer Jon Rahm is currently owed the most money among unsecured claims from creditors, $7.47 million, as part of a player participation agreement. Rahm is reportedly still owed more than $100 million from the nine-figure contract he signed ahead of LIV's 2024 season. Many LIV players remain under contract with some having multiple years remaining generally extending through the 2028 league season, yet those contracts "do not reflect the contemplated compensation structure under LIV 2.0," according to Front Office Sports.

LIV is seeking permission from the bankruptcy court to "reject certain executory contracts," mostly with players, but also some proprietary leases and agreements with vendors. According to Joe Bain, co-chair of law firm Jones Walker's bankruptcy and restructuring team, this represents a standard leverage tactic: "The strategy that I see they're implementing is something that's typically used in bankruptcy where essentially you'll threaten to reject the contracts in the hopes you'll put leverage on the other side to negotiate more economical terms."

Beyond player contracts, vendor debt includes IMG Media owed $3.2 million, golf influencer Rich Shiels owed $1.39 million, Fresh Tape Media owed $1.2 million, GSE Worldwide (DeChambeau's agency) owed $1.28 million, and the state of Louisiana owed $1.22 million.

BC Partners is prepared to provide up to $300 million in total financing. Under the proposed deal structure, BC Partners would own 45% of reorganized LIV Golf, players would be the majority equity holders with a combined 52.5% ownership stake, and league management would own 2.5%. A new seven-person board of directors would include three members designated by BC Partners. LIV is targeting a January 2027 emergence from bankruptcy and plans to conduct a sixth season under its new "2.0" structure next year.

LIV has revealed plans for 2.0 with field sizes expanded to 75 players per event, up from roughly 57 this past season, and Monday qualifiers to create new player pathways. The league plans events across five continents in places like Australia, South Africa, Mexico, England, Hong Kong, and the U.S., though no definitive decisions regarding the 2027 schedule or individual events have been announced.

LIV's proposed transaction with BC Partners remains subject to court and stakeholder approval. Keith R. Martorana, a partner at LIV's legal counsel Gibson & Dunn, said during an initial virtual bankruptcy hearing Wednesday: "We found over the last several months, as we have had a credit agreement in place with PIF, that it hasn't always been the easiest to get money. There's a lot of mechanics that go into obtaining funds from the Kingdom of Saudi Arabia."