LIV Golf, which was founded in 2021 and held its inaugural season in 2022, has officially filed for Chapter 11 bankruptcy protection in the United States. The organization stated the move is intended to “preserve the company’s business” as it attempts to restructure following the decision by Saudi Arabia’s Public Investment Fund (PIF) to pull its multibillion-dollar funding in April. Despite this filing, the league maintains its intention to launch a new, majority player-owned iteration early next year.
Financial Standing and Creditor Claims
Court documents filed on Tuesday reveal significant financial strain, with the league estimating its assets at between $100m and $500m (£74m-£370m) against liabilities ranging from $500m to $1bn (£370m-£739m). The petition identifies the 30 largest unsecured creditors, a list that includes 14 current and former LIV players owed a combined total of just over $45m (£33m).
Top Creditors and Player Obligations
- Jon Rahm: $7.5m (£5.5m)
- Bryson DeChambeau: $5.7m (£4.2m)
- Dustin Johnson: $5.5m (£4.1m)
- Cameron Smith: $4.8m (£3.5m)
- Tyrrell Hatton: $3.4m (£2.5m)
- Brooks Koepka: $1.7m (£1.25m)
The Chapter 11 process effectively terminates existing contracts under the previous iteration of LIV Golf, with outstanding debts to players and other creditors to be addressed through the court. Sport understands that there is no obligation for players to sign on to the new “LIV 2.0” venture, regardless of any previously signed multi-year agreements. The legal process provides the league the necessary framework to begin negotiations with players regarding their potential participation in the future of the organization.
While the league is moving forward with its restructuring plans, it remains unclear when players would be permitted to enter formal discussions with other professional tours. The bankruptcy filing serves as a pivotal moment for the breakaway circuit as it seeks to pivot toward a player-owned model while managing its significant outstanding liabilities. The report also notes that two-time major winner Jon Rahm tops that list with an unsecured claim of $7.5m (£5.5m).
