LIV Golf submits bankruptcy plan, eyes liquidation in January
LIV Golf formally presented a Chapter 11 bankruptcy plan to a New Jersey court on Tuesday, outlining a timeline that includes a January 7 hearing to finalize its disclosure statement and initiate liquidation proceedings.
The league initiated bankruptcy proceedings on September 8, following a decision by the Public Investment Fund of Saudi Arabia (PIF) to cease financial backing after the 2026 season.
The bankruptcy plan aims for an organized dissolution of LIV Golf’s operations.
A proposed restructuring agreement with BC Partners Credit, initially pledging $300 million, ultimately lacked sufficient support to sustain a potential LIV 2.0 version for 2027. According to a summary within the bankruptcy plan, this was due to a lack of player involvement and BC Partners’ termination of the Restructuring Support Agreement.
Documents reveal that PIF invested approximately $5 billion in equity capital, and LIV Golf consistently operated at a loss, with profitability years away.
Approximately a week prior to the bankruptcy filing, LIV Golf laid off 289 employees and furloughed 22 others.
This action followed the recent disbursement of $15.6 million in retention bonuses to seven executives deemed crucial for completing the 2026 season and facilitating restructuring efforts.
A hearing is scheduled for November 24 to conditionally approve the disclosure statement, a necessary step in the wind-down process that ensures transparency for creditors.
The period between the November hearing and the January 7 liquidation hearing will be dedicated to resolving voting rights and addressing any claims from creditors.
A wind-down trust will manage payments to creditors, resolve legal claims, and handle other financial obligations.
Last week, a judge approved Jon Rahm’s departure from LIV Golf, releasing him from a reported $100 million commitment made when he joined the league in late 2023. Rahm recently secured a victory in Abu Dhabi, marking his first European tour title since 2022.
The remaining LIV Golf players, currently banned by the PGA Tour, face uncertainty regarding their playing futures, with options including European tour membership or seeking sponsor exemptions.
The PGA Tour has not yet indicated a pathway for returning players and is likely to withhold any decisions until the bankruptcy proceedings conclude.
Source
“LIV Golf files bankruptcy plan and sets sight on January liquidation”
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