LIV Golf is facing the possibility of declaring bankruptcy while seeking funding for a reduced tour for 2027. Players are still awaiting outstanding million-dollar payments, complicating the situation.
LIV Golf could file for bankruptcy protection next week as the golf league attempts to secure funding from BC Partners for a scaled-down version of the tour planned for 2027. This information, reported by expansion.com, indicates that the league has proposed to current players offers that barely cover a few cents on the dollar of the debts owed.
The lack of financial support from the sovereign fund of Saudi Arabia, which launched LIV in 2022, has led to this critical situation. Scott O'Neil, CEO of LIV, has stated that golfers should not be restricted in their participation in other tournaments.
The Public Investment Fund (PIF) of Saudi Arabia has made it clear that it will not provide further funding at the end of the current season. Meanwhile, LIV has been negotiating a funding package with BC Partners, which could include the establishment of a new tour under the name of LIV 2.0.
The situation is complicated due to the demands of several suppliers who are still awaiting payments. The bankruptcy filing could take place in the federal district court of New Jersey, known for being debtor-friendly under Chapter 11. BC Partners is waiting for LIV and the PIF to resolve payments to players before structuring the terms of the potential bankruptcy.
LIV's operating losses exceed 5 billion dollars, and BC Partners is expected to lead an investment of up to 300 million dollars to acquire the league's assets and consolidate other sports assets.
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