LIV Golf files for bankruptcy owing players $45m

LIV Golf has filed for Chapter 11 bankruptcy protection in the United States after Saudi Arabia’s Public Investment Fund withdrew its financial backing. The breakaway professional golf league owes more than $45 million to 14 current and former players, effectively ending existing player contracts and allowing golfers to leave or negotiate new terms.

The court petition in the federal district court of New Jersey comes as LIV Golf attempts to reorganize its business around a proposed new investor and a restructured, player-owned competition model planned for early next year.

Debts to Star Players and Financial Estimates

Documents submitted in the petition outline the league’s 30 largest unsecured creditors, which include major champion golfers. Two-time major winner Jon Rahm tops the list with an unsecured claim of $7.5 million. Other top player claims include Bryson DeChambeau at $5.7 million, Dustin Johnson at $5.5 million, Cameron Smith at $4.8 million, Tyrrell Hatton at $3.4 million, and Brooks Koepka at $1.7 million. Koepka departed LIV Golf in January to rejoin the PGA Tour.

A source familiar with the court documents stated that the figures listed reflect unpaid obligations for the third quarter of 2026 rather than the full remaining values of player contracts. In total, LIV Golf owes just over $45 million to the 14 players appearing among its 30 largest unsecured creditors.

Court filings estimate LIV Golf’s total assets between $100 million and $500 million, against total liabilities estimated between $500 million and $1 billion.

Loss of Saudi Backing and Proposed Investment

The restructuring follows the decision in April by Saudi Arabia’s Public Investment Fund (PIF) to end its financial support. Since LIV Golf was founded in 2021, PIF had spent more than $5 billion to launch the circuit and sign prominent players. PIF stated that continuing its substantial long-term funding was no longer consistent with its strategy, though it noted it remains committed to other sports investments.

To support LIV Golf through the court-supervised reorganization, PIF is providing a $49.6 million debtor-in-possession bankruptcy loan. Meanwhile, LIV Golf has identified international private equity firm BC Partners as its proposed new investor to replace Saudi backing.

Player Contracts and “LIV 2.0” Plans

The Chapter 11 filing terminates existing player contracts under the original league structure. Players are under no obligation to sign contracts with the proposed new circuit, referred to as LIV 2.0. However, it remains unconfirmed when players who choose not to remain will be permitted to enter contract discussions with rival tours.

LIV Golf chief executive Scott O’Neil said the court process provides time to complete a transaction for the league’s next phase. Speaking on Tuesday prior to the Irish Open, Jon Rahm declined to outline his plans, stating that “time’s gonna tell” how events unfold.

LIV Golf plans to launch its reorganized league early next year under a majority player-owned model. Proposed structural changes include expanding field sizes to 75 players, introducing mid-tournament cuts, establishing open qualification routes, returning individual commercial rights to players, and offering prize purses positioned below the PGA Tour but above the DP World Tour.

Background

LIV Golf was launched in 2021 as a lucrative alternative to established professional golf circuits, drawing high-profile players away from the PGA Tour and DP World Tour with guaranteed multi-million dollar contracts and no-cut events. Financed primarily by Saudi Arabia’s Public Investment Fund, the league altered the financial landscape of global professional golf before cutting its 2026 season short following the withdrawal of Saudi financial support.