LIV Golf files for bankruptcy protection after Saudi funding withdrawal
Quick Look
LIV Golf has filed for Chapter 11 bankruptcy protection in the United States following Saudi Arabia's Public Investment Fund withdrawal of multibillion-dollar funding, allowing players to leave and signaling a restructuring effort with new investor BC Partners ahead of a planned player-owned league launch next year.
AI-generated summary
Why It Matters
LIV Golf, a breakaway golf league funded by Saudi Arabia's Public Investment Fund, sought to challenge established golf tours with lucrative player contracts before facing funding withdrawal.
LIV Golf has filed for bankruptcy protection as it attempts to restructure after Saudi Arabia withdrew its multibillion dollar funding - a move that means all its players are free to leave.
A Chapter 11 petition, which LIV says is to "preserve the company's business", was filed in the United States on Tuesday.
The breakaway league says it has found a new investor in BC Partners, following the decision in April by Saudi Arabia's Public Investment Fund (PIF) to pull its funding.
LIV Golf intends to commence its new majority player-owned league early next year and it is understood the Chapter 11 process allows it to start talking to players about their participation in LIV's future.
BBC Sport understands there is no obligation on players to sign on to LIV 2.0, regardless of whether they had previously signed multi-year contracts with LIV Golf.
Sources have said contracts under the previous iteration of LIV Golf will finish because of this court filing, with amounts owed to players and other creditors addressed through the court process.
However, it remains unclear when players would then be able to enter discussions with other tours.
More to follow.
What to Watch
AI outlook — possibilities, not facts
LIV Golf will launch a player-owned league early next year
Likely · Within months
Player contracts from previous LIV Golf iteration will be resolved through bankruptcy court
Very likely · Within weeks
Open Questions
- When will LIV Golf emerge from bankruptcy?
- Which players will join the new player-owned league?
- What are the financial obligations to creditors under the bankruptcy process?
