LIV Golf has filed for Chapter 11 bankruptcy protection in the United States, a move that is expected to bring existing player contracts to an end and give all golfers the option to leave or enter discussions with other tours. The petition was filed on Tuesday in the federal district court of New Jersey, where the breakaway league established a subsidiary earlier in the summer.
LIV Golf Files for Chapter 11 Bankruptcy After Funding Withdrawal
The restructuring follows the decision by Saudi Arabia’s Public Investment Fund (PIF) in April to withdraw its multibillion-dollar financial backing. When announcing its decision to pull funding, PIF stated that the substantial investment required by LIV Golf over a longer term
was no longer consistent
with its strategy. Since LIV’s launch in 2021, more than $5 billion (£3.7 billion) has been spent by PIF to attract major winners like Jon Rahm and Bryson DeChambeau with lucrative contracts and vast prize money. Despite stopping its bankrolling of the league, PIF added that it remains committed
to its investments in various sports as a priority sector.
To help fund the court-supervised restructuring process, PIF is providing a debtor-in-possession bankruptcy loan of $49.6 million (£36.6 million). Chapter 11 protection postpones a US company’s obligations to its creditors, providing time to reorganize debts, address previous financial obligations, sell parts of the business, and complete a transaction to make a new phase of the league a reality.
New Investor and Shift Toward a Sustainable Business Model
Amid the restructuring, LIV confirmed international investment firm BC Partners as its proposed new investor in a letter to fans outlining its next phase. LIV Golf chief executive Scott O’Neil described the court-supervised process as a framework designed to build a stronger and more sustainable future for LIV Golf
and provide the structure to pursue a landmark transaction.
The changes mark an end to the free-spending era of LIV 1.0. The new league is expected to be built around a sustainable business model featuring an innovative, player-first ownership model. Players are set to be given equity, and individual commercial rights are slated to be returned to them, granting greater earning potential alongside lower guaranteed money and reduced prize funds compared to the initial era.
Proposed changes outlined for the league include:
- Expanding field sizes to 75 players
- The introduction of a cut
- Creating qualifiers
- Establishing more teams that embrace national identities with ambitions to grow into enduring global sports businesses
In terms of competitive compensation, LIV Golf purses are set to be lower than events on the PGA Tour—which rose in part due to LIV’s existence—but higher than events on the DP World Tour.
Player Reactions and Uncertain Futures for Star Golfers
The bankruptcy process and expected termination of existing contracts leave major stars with significant choices to make, granting players considerably more leverage as chief executive Scott O’Neil attempts to reach the required critical mass of players to make the new league a reality.
Jon Rahm, the Legion XIII captain, addressed his future ahead of the Irish Open at Trump, speaking to BBC Sport before the bankruptcy filing was confirmed. Rahm noted that his position had not changed from his previous interview in Indianapolis, stating, 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.
He added, I still have a contract with LIV 1.0 that I’m more than willing to fulfil, so like I said, time will tell.
Bryson DeChambeau also expressed optimism following the conclusion of the 2026 season—which ended early—stating that he believed there was a lot of potential moving forward
and that there was something fun coming.
Despite such optimism from some participants, the league must now sell its new vision to golfers initially recruited with enormous financial guarantees, while operating under restructured terms where players evaluate their futures across professional golf.
