LIV Golf has initiated Chapter 11 bankruptcy proceedings in the United States as part of a major financial restructuring following the withdrawal of backing from Saudi Arabia. The circuit, established in 2021 and backed by more than five billion dollars in investment, announced that the legal filing is intended to safeguard its ongoing operations and facilitate a transition to a new ownership model.
The restructuring follows the decision earlier this year by the Saudi Public Investment Fund to halt its financial support, stating that the long-term capital requirements no longer aligned with its broader strategy. To assist through the court-supervised reorganization, the fund is providing a debtor-in-possession loan totaling nearly fifty million dollars.
A federal bankruptcy court in New Jersey received the petition on Tuesday. This legal step temporarily pauses obligations to creditors, offering the enterprise an opportunity to reorganize its debts while finalizing a new investment agreement.
In correspondence sent to supporters, management identified international investment firm BC Partners as the incoming financial backer. The organization plans to launch a majority player-owned competition early next year.
The court filing automatically terminates existing agreements under the previous iteration of LIV Golf, leaving all competitors with the choice of whether to sign new terms. Participants are under no obligation to join the upcoming format, regardless of any multi-year commitments previously in place. Financial claims from creditors and athletes will be resolved through the ongoing legal proceedings.
Star competitors have responded with caution to the announcement. Speaking ahead of upcoming tournaments, prominent athletes noted that discussions regarding future participation remain fluid. While management has expressed optimism about securing sufficient competitor participation for the revamped series, questions persist regarding how quickly athletes might be eligible to transition to alternative circuits.
Reporting based on coverage first published by BBC News. Read the original report at BBC News.
