LIV Golf to shut down after rescue deal fails

LIV Golf will shut down. On Thursday, Nov. 5, the league's lawyers told a New Jersey bankruptcy court that it has dropped its proposed "LIV 2.0" restructuring and will move to an orderly wind-down. The breakaway circuit had upended professional golf for five years, and its Saudi backer had spent more than $5 billion on it. The decision came after BC Partners walked away from a planned $300 million financing package because not enough top players had committed to the 2027 season.espn.com+1

Inside the courtroom

LIV attorney Matthew Williams spoke to U.S. Bankruptcy Judge Michael B. Kaplan. "The debtors were ultimately unable to bring the key parties to a fully consensual arrangement that would have supported a financially viable LIV 2.0 league," he said. He told the court the league would file a new Chapter 11 plan on Monday, Nov. 9. Williams said the final call was made Thursday morning. He added that the league's strategic committee could revisit it if circumstances change. The hearing lasted 13 minutes. The creditors committee is due to meet on Nov. 20, and the next court hearing is set for Nov. 24.golfweek.usatoday.com+1

In its own statement, LIV said its restructuring agreement with BC Partners Credit had been terminated after the parties failed to agree on outstanding terms. The league said it remains open to "value-maximizing alternatives" from third parties during the wind-down. CEO Scott O'Neil called the venture "the round of a lifetime." A BC Partners spokesperson said the firm was "disappointed that mutually acceptable terms could not be reached among the various stakeholders".espn.com+1

Why the deal failed

LIV filed for Chapter 11 protection on Sept. 8. At the time, it listed between $100 million and $500 million in assets and $500 million to $1 billion in liabilities. Under the original deal, BC Partners and minority investors would have owned 45% of the new league. Players would have held 52.5% and management 2.5%. The money depended on LIV signing enough players. One source told ESPN that about 30 players were committed and another 10 were still considering it. BC Partners pulled out as those negotiations dragged on.sportico.com+1

The league lost several of its biggest names. Jon Rahm, Sergio Garcia and Tyrrell Hatton chose not to commit and plan to play on the DP World Tour. Rahm had been LIV's largest unsecured creditor. He settled with the league and gave up that position.espn.com+1

End of a disruptive era

Saudi Arabia's Public Investment Fund announced in April that LIV no longer fit its investment strategy and that it would stop funding the league after the 2026 season. The league launched in 2022 and lured away stars such as Bryson DeChambeau and Dustin Johnson. That led to suspensions from the PGA Tour, antitrust litigation and stalled merger talks.reuters.com

"This was not an easy conclusion for anyone who believed in what LIV Golf built," Williams told the court, "but it is the right one for these estates and the circumstances".espn.com