LIV Golf Files for Bankruptcy Protection After Saudi Funding Ends (Comprehensive)

LIV Golf, which launched with the ambition of catching up to the PGA Tour, has ultimately filed for bankruptcy protection. LIV Golf experienced financial difficulties after it failed to secure alternative funding sources following the decision by the Saudi Public Investment Fund (PIF) to end its financial support.

Reuters Yonhap News

According to a report by Bloomberg on September 8 (local time), LIV Golf filed for bankruptcy protection under Chapter 11 of the U.S. Federal Bankruptcy Code in New Jersey. PIF has agreed to provide $49.6 million in debtor-in-possession (DIP) financing during the bankruptcy proceedings, subject to court approval.

In a press release, LIV Golf stated that it is engaged in 'advanced negotiations' regarding a plan in which players would hold a majority stake in the company after restructuring. BC Partners Credit, along with certain other investors, is expected to provide the necessary capital for LIV Golf to complete its restructuring and exit bankruptcy protection procedures.

According to the bankruptcy filing, LIV Golf owes tens of millions of dollars to players. The company needs to pay more than $7.4 million to Jon Rahm, about $5.7 million to Bryson DeChambeau, and $5.4 million to Dustin Johnson. The assets reported by LIV Golf are between $100 million and $500 million, while its liabilities amount to between $500 million and $1 billion.

Since its launch in 2022, LIV Golf made waves in the golf world by attracting top professional players with massive contracts and promoting fast-paced tournaments with flashy production. Such a strategy, which required substantial financial resources, was made possible by the support of PIF. At the time, PIF was investing heavily in a range of sports, including soccer and tennis, and LIV Golf was one of the main projects receiving significant financial backing under this approach.

However, early this year, PIF shifted its investment strategy to focus on profitability and decided to end its financial support of LIV Golf. Bloomberg reported that PIF invested an estimated $5 billion into LIV Golf over the past four years.

LIV Golf plans to clean up its existing contracts and debt obligations through bankruptcy protection and relaunch the league in a new format. The Financial Times previously reported that there were ongoing efforts to launch a so-called 'LIV 2.0' with the backing of BC Partners. LIV Golf aims to complete its court-supervised restructuring process by early next year.

This content was produced with the assistance of AI translation services.