LIV Golf Files for Chapter 11 Bankruptcy and Restructures Into Player-Owned ‘LIV 2.0’ Model

LIV Golf has commenced a formal Chapter 11 bankruptcy restructuring process in the U.S. Bankruptcy Court of New Jersey, supported by BC Partners’ credit business, following the withdrawal of financial backing from Saudi Arabia’s Public Investment Fund.

The court-supervised restructuring aims to transition the circuit into ‘LIV 2.0’, a newly structured league featuring a player-majority ownership stake, global expansion across five continents, expanded 75-player fields, cuts, and Monday qualifiers.

The financial fallout from the PIF’s exit left the organisation unable to meet financial obligations to vendors and marquee players, with prominent major champions including Jon Rahm, Bryson DeChambeau, and Dustin Johnson holding unsecured claims exceeding $5 million.

Addressing the pivot in a communication to stakeholders, and framing the restructuring alongside corporate precedents, LIV Golf CEO, Scott O’Neil, saiid: “Plenty of well-known companies have taken this path before us, including Marvel Entertainment, Delta Airlines, and Caesars Entertainment, along with sports franchises like the Los Angeles Dodgers, Pittsburgh Penguins, and Leeds United F.C.”

“We are entering this process with a clear plan and the support of BC Partners, well-capitalized investors with deep experience in sports and entertainment,” O’Neil stated. 

The financial collapse of the original circuit structure has thrown player contracts into uncertainty. While multi-year agreements concluded under the previous iteration of LIV Golf will terminate through the court proceedings, reports indicate that athletes are under no legal obligation to sign on to LIV 2.0.

Addressing his immediate playing future while competing on the DP World Tour, Jon Rahm, told BBC Sport: “There’s just a lot of things in place, right? There’s a lot of things that could happen, and it’s one of those things where time’s gonna tell.”

“I still have a contract with LIV 1.0 that I’m more than willing to fulfill. So, like I said, time will tell,” O’Neil stated. 

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