LIV Golf to wind down after $300m rescue deal collapses

The latest:

LIV Golf is heading into an orderly liquidation after a $300 million rescue package from BC Partners fell apart, the league announced on Thursday, 5 November, according to The National. Special committee board members Jane Davis and John Zinman said the shift was the most responsible path available in current circumstances. The league said it remains open to third-party offers to maximise value from its assets.

Details:

• The failed deal: The $300 million package from BC Partners would have funded a route into the 2027 season, The National reported. The plans were scrapped after several leading players declined to commit, leaving the league without the roster needed to justify the investment.
• The lender’s position: A BC Partners spokesperson said that despite substantial support for the league, the firm was disappointed that terms acceptable to the various parties were not reached. The Independent reported the restructuring support agreement with the firm’s credit arm was terminated over unresolved clauses.
• The Saudi exit: The Public Investment Fund confirmed in April it would withdraw financial backing after the 2026 season, according to The National. Reports cited by AGBI put total Saudi spending on the league at more than $5 billion since it launched in 2022.
• Bankruptcy timeline: AGBI reported the league filed for Chapter 11 protection in the United States in September, after the sovereign fund pulled its support. A month later it secured the $300 million from BC Partners Credit to relaunch the 2027 season under the name LIV 2.0.
• The balance sheet: The bankruptcy filing showed liabilities of between $500 million and $1 billion against assets of between $100 million and $500 million, according to AGBI. The fund agreed within the proceedings to extend a $50 million debtor-in-possession loan and exit as a backer.
• The court hearing: The bankruptcy session at the New Jersey district court lasted about 13 minutes, The Independent reported, citing The New York Times and The Athletic. Remaining assets are to be sold, with the league saying it will weigh third-party offers throughout.
• Player fallout: Jon Rahm announced his departure and his plan to return to the DP World Tour in 2027, according to The National. The PGA Tour says players who competed in LIV events face a one-year ban dated from their last appearance.
• What was not set out: The league did not publish a liquidation timetable, name expected bidders for its assets, or specify which holdings would be offered first. No figure was given for what the remaining assets are expected to fetch.

Background:

LIV Golf launched in 2022 with Public Investment Fund backing and recruited players from established tours with large guaranteed contracts, triggering a rupture with the PGA Tour that produced bans and litigation and was never fully resolved.

Between the lines:

The sequence set out in the filings points to a financing structure dependent on one backer. The fund’s April notice gave the league months to find a replacement, and the $300 million credit line secured in October briefly supplied one. That it collapsed over player commitments suggests the asset being valued was the roster, not the tournaments or the brand.

What’s next

Watch the New Jersey court for the asset sale process and any approved bids, the PGA Tour and DP World Tour for how they handle returning LIV players, and the fund for disclosure of its final losses.