LIV's financial backer drops plans for new league in 2027

LIV Golf’s main investor in its effort to emerge from Chapter 11 bankruptcy is scrapping plans for a new version of the league because it lacked enough player support, the Financial Times reported Wednesday.

BC Partners Credit had pledged as much as $300 million for what was called "LIV 2.0," which was planning at least 10 tournaments, an emphasis on teams and equity for players. LIV CEO Scott O'Neil had called the equity a "second bite of the apple."

But that required enough players to sign up for LIV 2.0. Four players, including Brendan Steele and Cameron Tringale, publicly stated their support. LIV was believed to have as many as 30 players willing to stay with the league, but it lacked star power.

Ted Goldthorpe, partner and head of BC Partners Credit, said at a Sportico conference in September, "A lot of the money that was spent created the ecosystem and infrastructure that exists today. We think we can run this in a financially sustainable way because much of that spending went to getting the players, and the players are here."

Jon Rahm was released from his contract in a deal that was to be approved at a hearing Thursday in US Bankruptcy Court in New Jersey. The Financial Times reported that the hearing would instead shift toward LIV seeking liquidation of its assets.

LIV Golf officials did not immediately respond to a request for comment.

LIV Golf New Jersey filed for a change of address in bankruptcy court Wednesday, moving from an office in New York to Claymont, Delaware, a commercial office property.

The Public Investment Fund (PIF) of Saudi Arabia was behind LIV Golf when it launched in 2022, luring away several big names – Dustin Johnson, Brooks Koepka, Bryson DeChambeau and eventually Rahm – with nine-figure signing bonuses.

Even ordinary players with only one PGA Tour victory signed for $30 million, more than they had earned in their careers.

The league, originally run by Greg Norman, spent more than $5 billion. But a few months after the start of the Iran war, PIF changed its investment strategy in April and said it would no longer fund LIV Golf after the 2026 season.

The Asian Tour, which received a financial boost from LIV for an International Series, decided in July to renew its alliance with the PGA Tour and European tour.

As LIV was trying to emerge from bankruptcy, filed on Sept. 8, the European tour issued an ultimatum, saying anyone who signed with LIV 2.0 would not be eligible for membership in the commercially known DP World Tour.

That would make European players ineligible for the Ryder Cup.

Guy Kinnings, the European tour CEO, criticized LIV in an interview with The Scotsman, saying, "But we also have to protect the tour against an entity who spent, so we are told, over $7 billion, with one of their aims being to ’destroy the DP World Tour.'"

Rahm, Sergio Garcia, Louis Oosthuizen and Tyrrell Hatton also said they would no longer stay with LIV, and the rival league lost young players such as David Puig of Spain and Tom McKibbin of Northern Ireland.

The year began with Brooks Koepka getting out of his LIV deal with one year remaining, and the PGA Tour created a path for his return, with financial penalties. Patrick Reed chose not to extend his deal and is now poised to return to the PGA Tour next year through his performance in Europe.

Rahm said Tuesday he would be willing to pay the same price as Koepka, though it was unlikely the same deal would be offered.

LIV 2.0 was promoting player equity and prize money that was more than half of the $20 million purses for individuals when the league began in 2022. LIV’s final event was in August in Indianapolis, won by Michael La Sasso. He failed to advance beyond the second stage of European tour qualifying school last week. (AP)