LIV Golf Files Chapter 11 Bankruptcy, Owes Players Millions

LIV Golf filed for Chapter 11 bankruptcy protection on Tuesday in New Jersey, less than five years after its first event.

The move allows the debtor to remain in possession and operate its business while restructuring debts. LIV Golf owes between $500 million and $1 billion in estimated liabilities to at least 1,000 creditors, including star players. Jon Rahm tops the list of unsecured creditors with $7.5 million outstanding, followed by Bryson DeChambeau ($5.7 million or nearly $8 million), Dustin Johnson ($5.5 million or $5.7 million), Cameron Smith ($4.8 million or about $6.5 million), Adrian Meronk ($4.4 million), Tyrrell Hatton ($3.4 million), and Brooks Koepka ($1.7 million).

The Public Investment Fund (PIF) of Saudi Arabia, which owned 100 percent of LIV Golf's equity, announced in April it was pulling its billions in funding, stating further investment no longer aligned with its strategy. PIF had poured an estimated $5 billion into the tour since its 2022 launch. PIF has agreed to provide a $49.6 million ($US49.6 million or $68.7 million) bankruptcy loan for the reorganization process.

LIV Golf chief executive Scott O'Neil stated the process gives them the structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf. LIV intends to move towards a player-first ownership model and hopes to exit bankruptcy in early 2027. BC Partners, a British investment firm, and other potential minority investors are expected to provide exit financing.

Most of LIV's staff were laid off earlier this year, and its season-ending team championship was scrapped in August. The bankruptcy will allow golfers to exit their contracts.