LIV Golf has filed for bankruptcy protection in the United States after Saudi Arabia withdrew its financial backing, though the breakaway circuit aims to launch a restructured version of the league in 2027.
The golf circuit submitted a Chapter 11 petition in the Bankruptcy Court for the District of New Jersey on Tuesday. The league stated that the filing was made to preserve the business as a going concern while transitioning to an innovative, player-first ownership model.
The insolvency proceedings follow a decision by Saudi Arabia's Public Investment Fund (PIF) earlier this year to stop bankrolling the breakaway tour beyond the 2026 campaign. PIF had invested more than $5 billion (£3.6 billion) into LIV Golf over five years, leaving management searching for fresh investment in recent months.
Under Chapter 11 of the US Bankruptcy Code, companies can continue operating under court supervision while reorganizing their debts and business structure. Subject to court approval, PIF will provide LIV Golf with an additional $49.6 million (£36.6 million) in debtor financing to maintain operations during the process.
Financial liabilities and player debts
According to the Chapter 11 petition, LIV Golf holds estimated liabilities of between $500 million (£370 million) and $1 billion (£730 million). The filing lists the company's total assets at between $100 million (£74 million) and $500 million.
Court filings show that multiple LIV Golf players are listed as unsecured creditors, with the circuit still owing at least $45 million (£33 million) to its players.
Former Masters champion Jon Rahm and two-time US Open winner Bryson DeChambeau are listed as the highest unsecured creditors on the bankruptcy documents, with each owed more than $5 million. Dustin Johnson, another major champion who joined the tour at its inception, is also understood to be among the league's largest creditors.
LIV Golf cut around 90 per cent of its corporate staff following the conclusion of the season as negotiations over its long-term structure continued. Financial advisory firm Ducera Partners managed the investment process for LIV Golf, which led to proposed backing from private equity group BC Partners.
Uncertain options for marquee players
Sky News understands that LIV Golf has started talks with players regarding whether they will participate in the proposed new iteration of the league or choose to leave. The bankruptcy filing came just hours after Rahm told reporters he still had a contract that he was more than willing to fulfil. The Spanish golfer reportedly has more than $100 million remaining on the multi-year deal he signed at the end of 2023.
In contrast to Rahm, DeChambeau's contract with LIV Golf expired at the end of the 2026 season, leaving his future unresolved as negotiations continue.
Rahm, DeChambeau and Cameron Smith previously rejected the PGA Tour's Returning Player Program introduced earlier this year. Fellow major winner Brooks Koepka accepted the pathway back to the US-based tour, but PGA Tour chief executive Brian Rolapp confirmed at the Tour Championship that there are no plans to reintroduce the program next season.
The lack of a direct reinstatement program leaves departing players facing a potential route back similar to former Masters champion Patrick Reed. Reed is positioned to earn a PGA Tour card by finishing inside the top 10 of the Race to Dubai rankings on the European-based DP World Tour.
Many LIV Golf participants have remained active members of the DP World Tour and could elect to play their next season on the European circuit. However, it remains unclear whether players will be permitted to compete across both tours going forward, as some have done in recent years.
PGA Tour star Rory McIlroy has previously warned that LIV golfers face a tough road back to mainstream competition, while golf analyst Rob Lee discussed how LIV Golf 2.0 might look on the Sky Sports Golf Podcast.
Restructuring and new ownership model
LIV Golf stated on Tuesday that the restructured league is expected to be majority-owned by its players, with whom management remains in advanced discussions.
LIV Golf chief executive Scott O'Neil praised the circuit's players and corporate team for their resilience during the financial transition.
"The people of LIV Golf, led by the players, have continued to show incredible resilience, commitment, and a shared belief in what we are building," O'Neil said. "Thanks to their tireless work, LIV Golf has created a foundation to entertain and inspire the next generation of global golf fans around the world."
"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 added. "We are excited about what lies ahead and yet, there is still much to accomplish in the months ahead."
"We believe deeply in LIV Golf's future, the opportunity in front of us, and the people who will help us realise it," O'Neil said. "We are grateful to our players, the incredible team at LIV Golf, our board, BC Partners, and our partners all over the world standing tall with us."
"We thank them for their belief in our next chapter. A special thank you to Ducera Partners who drove this investment process. We will not rest until we deliver on LIV Golf's full potential," O'Neil added.
Plans for 2027 relaunch
Despite the bankruptcy filing, LIV Golf remains hopeful of launching a new version of the league starting in 2027. Proposed structural changes include expanding tournament fields to 75 players, introducing 36-hole cuts, and establishing open qualifying pathways, including Monday qualifiers.
The proposed 2027 schedule includes events planned in countries such as Australia, South Africa, Mexico, England, Hong Kong and the United States, with participating teams increasingly expected to embrace national identities.
O'Neil insisted that the next phase of the circuit is intended to complement the broader professional golf landscape rather than wage head-to-head competition against existing tours.
"I have often said that our role in golf should be to complete, not compete," O'Neil said. "I believe that more strongly today than ever. I know that the next phase of LIV Golf will be an important part of a healthier global golf ecosystem."
"It will create more opportunity for players, bring elite golf to more parts of the world, and give teams and players a real stake in the future they are building," O'Neil added. "Transitions are rarely easy, but they are powerful when you know where you are going. And we do."
