LIV Golf files for Chapter 11 bankruptcy, proposes player ownership model

LIV Golf filed for Chapter 11 bankruptcy protection on Tuesday in the United States Bankruptcy Court for the District of New Jersey, marking a dramatic turn for the Saudi-backed league that once lured some of the world's top golfers with record-breaking purses. The league entered a Restructuring Support Agreement with BC Partners Credit and said it intends to emerge from the process in early 2027 as a majority player-owned entity.investing+1

CEO Scott O'Neil framed the filing as a path forward. "This process gives us the structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf — one built around the fans, an innovative, player-first ownership model, and a part of the global golf ecosystem," O'Neil said in a statement.investing

PIF Steps Back, Provides Bridge Financing

Saudi Arabia's Public Investment Fund, which bankrolled LIV Golf since its 2022 launch, has agreed to provide $49.6 million in debtor-in-possession financing to keep the league operating during the restructuring, subject to court approval. The DIP loan, however, represents the end of PIF's largesse. The sovereign wealth fund announced in April that it would stop funding LIV Golf after the 2026 season, stating that the "substantial investment required by LIV Golf over a longer term" no longer aligned with its strategy.cedarnews+3

BC Partners Credit and other potential minority investors are expected to provide exit financing and serve as the plan sponsor for the reorganized company. Gene Davis, chairman of the board's special committee, said directors "reviewed all available options" and believe the bankruptcy filing "reflects the most responsible path forward for the league and its stakeholders".investing

Players Free to Leave

The BBC reported that LIV Golf players are now free to leave the league following the bankruptcy filing. The proposed restructuring would give remaining players equity stakes and return individual commercial rights to them. Future seasons are expected to feature expanded fields of up to 75 players, the introduction of a cut, qualification pathways, and teams built around national identities.news.ssbcrack+1

Prize money under the new structure is expected to fall below PGA Tour levels but remain above those on the DP World Tour. The league had already ended its 2026 season early, canceling its Team Championship event amid the financial upheaval.golfraw+1

The filing caps a turbulent stretch for a league that spent billions attempting to reshape professional golf but ultimately could not sustain itself without state-backed funding.