LIV Golf Files for Bankruptcy Protection After Saudi Funding Withdrawal

What has happened to LIV golf?

The breakaway golf tour, launched with much fanfare, billions of dollars of investment and a string of the world's best players, in 2021. But on Tuesday it filed for bankruptcy protection in the United States.

Bankruptcy protection is a way of keeping a company alive while it restructures its debts. In this case, LIV would be moving from being financed by Saudi Arabia's Public Investment Fund (PIF), which pulled out in April, to being supported by BC Partners, a British investment firm.

"This process gives us the structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf," said the chief executive, Scott O'Neil.

According to documents related to the filing, LIV Golf has between $500 million (€430 million) and $1 billion in estimated liabilities to at least 1,000 creditors. This includes an estimated $45 million to a group of top players like Bryson DeChambeau ($5.7 million), Jon Rahm ($7.5 million) and Dustin Johnson ($5.7million).

O'Neil added that LIV intends to move towards a "player-first ownership model," but detail is thin, and there is currently no schedule in place for 2027. Most of LIV's staff were laid off earlier this year.

What has caused LIV golf to go bankrupt?

The sudden withdrawal of the PIF, which had invested an estimated $5 billion in LIV Golf, is the overriding reason. At the time, the PIF said that LIV Golf was "no longer consistent with the current phase of PIF's investment strategy."

This was considered evidence of the project's failure to overthrow the established PGA Tour or make much in the way of money or impact. While the huge prize money on offer lured away several big names, many more remained with the PGA Tour.

While Tuesday's legal move may buy LIV time, the withdrawal of Saudi funding, which was so key to its business model, gives O'Neil few options. To survive, it seems, it they must keep at least some of their big-name players while slimming down dramatically.

Is this further evidence of Saudi Arabia pulling out of sport?

It certainly seems that investment in golf is a thing of the past for the oil-rich, Gulf state. There have also been withdrawals of funding for tournaments, clubs or organizations in snooker, women's tennis, rugby and football. Saudi Arabia also backed away from its commitment to host the 2029 Asian Winter Games.

Sport was a key part of Vision 2030, a pet project of Crown Prince Mohammed bin Salman that aimed to diversify the Saudi economy and, in the eyes of many, also help launder its reputation through sport and other cultural assets.

The uncertainty caused by conflict in the Middle East has meant even the vast wealth of the Saudi ruling class has taken a hit while projects like the resort of Trojena, set to be a key resort in those Winter Games, have been scaled back.

The same is true of Neom, a proposed World Cup venue for 2034. Planned as an entirely new type of city — 500 meters (1,640 feet) high, built in a straight line and powered by renewable energy, Neom's construction has been significantly scaled back. The Guardian reported in late 2025 that several proposed World Cup stadium architects have been asked to rethink their plans to cut costs.

What will happen to the LIV golf players now?

It is unclear what will happen to the LIV golf players. The PGA Tour and LIV Golf have always had a frosty relationship. Any player leaving to join LIV was immediately suspended from the PGA Tour, which runs all of golf's major championships.

The 'returning member program', used by US golfer Brooks Koepka earlier this year to return to the PGA, briefly offered a potential pathway. It was designed as a "route back to elite performers who no longer have contractual limitations preventing them from complying with PGA Tour rules and regulations."

However it is was only open to players who left the PGA Tour at least two years ago and have won the Players Championship or one of the four majors.

DeChambeau, Cam Smith and Rahm were, therefore, the only players that qualified. But with that door now seemingly closed even to them, a return looks complex.

"I'm not part of the discussions but I'm pretty sure they aren't going to be welcomed back straight away," said Rory McIlroy, a six-time major winner who has been consistently critical of LIV, in August.

"They were offered this returning member program back in February, the one Brooks [Koepka] took, but that has come and gone, and I think it was said at the time that the deal they get going forward if they decide to come back would not be as good at the one Brooks got. So I'd say it will be a tough road back."

Edited by: Jonathan Harding