LIV Golf Chapter 11 bankruptcy filing sets up player-ownership proposal

LIV Golf Chapter 11 bankruptcy proceedings began on September 8 after the Saudi-backed league and its affiliates voluntarily sought court-supervised restructuring in the US Bankruptcy Court for the District of New Jersey. Court records cited by ESPN place the group’s assets between $100 million and $500 million and its liabilities between $500 million and $1 billion, underscoring the scale of obligations to be addressed in the case.

The company has signed a restructuring support agreement with BC Partners Credit, the credit business of BC Partners, for a proposed recapitalisation. LIV said the transaction is intended to preserve the business and is expected to result in a reorganised league that is majority owned by players, although it remains subject to court and relevant stakeholder approval.

What does LIV Golf’s Chapter 11 bankruptcy mean?

Chapter 11 gives a US company time to reorganise debts or sell assets while postponing obligations to creditors, the BBC reported. LIV says it is using the process to address prior financial obligations and complete its proposed transaction, rather than announcing an immediate end to operations.

The league intends to emerge from Chapter 11 and begin its proposed new era in early 2027. That timetable is an objective set by LIV, not a completed restructuring. The plan remains subject to court approval and completion of the proposed transaction.

Funding during the case and after emergence

Saudi Arabia’s Public Investment Fund has agreed to provide $49.6 million of debtor-in-possession financing, subject to court approval, LIV said. Debtor-in-possession financing is funding made available to a company in bankruptcy to support operations and the restructuring process.

LIV said BC Partners Credit and potential minority investors are expected to provide exit financing and act as plan sponsor when the company leaves Chapter 11, again subject to approval. Golf Digest reported that questions remain over the structure and conditions of BC Partners’ commitment.

The filing follows PIF’s decision to withdraw long-term funding after the 2026 season, according to the BBC. LIV subsequently identified BC Partners as its proposed new investor.

What is known about LIV Golf players?

Several leading golfers appear among the 30 largest unsecured claims in court records, ESPN reported. They include Jon Rahm, listed at $7.5 million; Bryson DeChambeau, $5.7 million; Dustin Johnson, $5.5 million; Cameron Smith, $4.8 million; Tyrrell Hatton, $3.4 million; and Brooks Koepka, $1.7 million.

BBC Sport reported, citing its sources, that players will have the option to leave and that contracts from the existing league are expected to end through the court process. It remains unclear when players could begin discussions with other tours. LIV says it remains in advanced discussions with players over the proposed ownership model.

LIV is also seeking recognition of its US proceedings in England and Wales, which it says would help preserve the value of its international assets and operations. The case now combines confirmed bankruptcy protections with financing and ownership proposals that still require approval and execution.

This story draws on original reporting from CNBC.