LIV Golf has filed for Chapter 11 bankruptcy in New Jersey, leaving its high-profile star players waiting to collect more than £30 million in unpaid money after its Saudi Arabian financial backers pulled funding.
The breakaway circuit lodged its legal petition on Tuesday night following months of financial uncertainty, revealing staggering individual sums owed to some of the biggest names in professional golf who are listed among the league's unsecured creditors.
Spanish golfer Jon Rahm tops the list of creditors with $7.5 million (£5.5 million) outstanding, while American player Bryson DeChambeau is owed $5.8 million (£4.3 million).
Former world number one Dustin Johnson, who won two major titles before joining LIV, is owed $5.5 million (£4.1 million). Australian golfer Cameron Smith, the 2022 Open champion, is owed $4.8 million (£3.5 million), while Polish professional Adrian Meronk is owed $4.4 million (£3.2 million). English golfer Tyrrell Hatton has $3.4 million (£2.5 million) in unsecured claims.
Chapter 11 is a provision of United States bankruptcy law that allows financially distressed corporations to reorganize their business affairs and restructure debt while continuing daily operations. LIV Golf was launched in 2022 as an aggressive rival to established global circuits, luring elite players with multi-million-dollar guaranteed contracts and massive tournament purses backed by Saudi Arabia's Public Investment Fund, the kingdom's sovereign wealth fund.
The figures detailed in the court filing represent money already owed to the golfers as of the date of the petition, rather than the total value of their multi-year contracts. Rahm signed a mammoth deal with LIV reported at $350 million (£258 million), meaning his £5.5 million outstanding balance represents only a fraction of his overall contract.
Rahm, a two-time major champion who won the 2021 US Open and 2023 Masters, was LIV's most marquee signing when he joined the tour in late 2023. DeChambeau, also a two-time US Open champion, served as one of the breakaway league's most prominent figures and advocates.
Breakaway league faces uncertain future
The bankruptcy petition marks a dramatic milestone in LIV Golf's downfall, coming four years after its arrival ignited a fierce civil war across professional golf. The breakaway circuit, which forced traditional tours to alter their schedules and increase prize purses, has been fighting for survival since its Saudi Arabian financial backers announced in April that they were withdrawing support for the project.
While bankruptcy proceedings could potentially enable the tour to achieve its goal of launching a reorganized "LIV 2.0," significant uncertainty remains over whether a planned union with private equity firm BC Partners will provide sufficient funding for a 2027 season. London-headquartered BC Partners is an international private equity manager that invests across Europe and North America.
A major question facing the venture is which marquee players will remain with the project in a significantly diminished and less lucrative form. The bankruptcy filing is understood to allow players to legally exit their contracts, even if they have years remaining on their agreements.
DeChambeau's initial contract expired at the end of the 2026 season, but he is expected to recommit to LIV in exchange for an equity stake in the league. However, LIV Golf insiders consider the situation surrounding Rahm and Hatton far more concerning, as both players are contracted through 2028.
Sources within Daily Mail Sport indicated prior to the court filing that both Rahm and Hatton were likely to depart the league if a Chapter 11 petition was formally submitted.
Potential returns to traditional tours
Rahm hinted at a potential departure on Tuesday when asked at the DP World Tour's Irish Open whether he would welcome a pathway back to the PGA Tour. He stated that he still held a contract with "LIV 1.0" that he was more than willing to fulfil, adding that time would tell. His explicit reference to "LIV 1.0" indicated his ongoing loyalty was contingent on his original financial terms being honoured.
Any LIV players attempting to return to the PGA Tour could face a fresh battle for reinstatement. The PGA Tour, the primary organizer of professional golf tournaments in North America based in Ponte Vedra Beach, Florida, previously imposed severe suspensions and heavy financial penalties on golfers who defected to the rival circuit.
Earlier this year, Rahm appeared to hedge his options by reaching an agreement with the PGA Tour. Under that arrangement, the Spaniard agreed to return for occasional appearances while paying the financial fines he had accrued since joining LIV in 2024.
The DP World Tour, historically known as the European Tour and based at the Wentworth Club in Surrey, England, has also established formal terms with Rahm. A spokesperson for the league stated: "The DP World Tour (PGA European Tour) and Jon Rahm have come to an agreement on conditional releases to play in conflicting tournaments on LIV Golf during the remainder of its 2026 season."
Rahm subsequently confirmed there was "no longer a standoff" between himself and the European circuit, noting that concessions were made by both parties. As LIV Golf navigates legal bankruptcy, its marquee players must now decide whether to commit to a restructured league or seek full reinstatement on traditional tours.
