LIV Golf enters liquidation phase as planned revival falls apart
The Saudi-backed league will wind down operations after failing to secure agreement on a new ownership structure, according to a bankruptcy attorney in New Jersey.
By Alexei Brooks ·
LIV Golf announced Thursday that it will cease operations and begin a wind-down process, abandoning plans for a revived league known as LIV 2.0. The decision was revealed during a Chapter 11 bankruptcy hearing in Trenton, New Jersey, where the organization's legal team explained the shift in strategy.
Matthew Williams, an attorney for Gibson Dunn representing the debtors, stated that the league is not proceeding with its previous expansion plan. He noted that the organization is instead toggling to a value-maximizing wind-down of its business. This move confirms that the league, which launched in June 2022, will not attempt to restart as a new entity for the 2027 season.
The collapse of the LIV 2.0 plan followed a failure to reach mutually acceptable terms among stakeholders. BC Partners Credit had pledged a $300 million investment to support the pivot toward a more sustainable model. The firm issued a statement expressing disappointment that the transaction, which it described as aligning the interests of players and investors, could not be finalized.
Key players on the circuit were not interested in the proposed terms. Jon Rahm and Sergio Garcia, along with Tyrrell Hatton and Louis Oosthuizen, declined to commit to the new structure. Rahm has already agreed to forfeit claims against LIV, reportedly valued at approximately $100 million, in exchange for being released from his contract. He has returned to play on the European Tour while seeking a path back to the PGA Tour.
The league's financial troubles intensified after the Public Investment Fund of Saudi Arabia changed its investment strategy in April. The fund decided to stop funding LIV Golf after the 2026 season, following more than $5 billion in prior spending. The Asian Tour also withdrew from its alliance with LIV in July, choosing instead to renew its partnership with the PGA Tour and the DP World Tour.
Guy Kinnings, the CEO of the European Tour, warned against signing players to LIV 2.0. He stated that the tour must protect itself against an entity that spent over $7 billion with an aim to destroy the DP World Tour. Kinnings noted that players joining the revived league would not need to apply for European Tour membership, which risked excluding them from Ryder Cup consideration.
LIV Golf paid $15.6 million to retain seven executives between the Saudi fund's decision and the bankruptcy filing. This sum included $6.375 million for CEO Scott O’Neil. These payments are standard for companies attempting to emerge from bankruptcy, but the liquidation phase raises questions about whether these amounts can be voided now that the company is not moving forward. The league's final event took place in August in Indianapolis, where Michael La Sasso claimed the title.
