LIV Golf filed a Chapter 11 bankruptcy plan with a New Jersey court on Tuesday, accompanied by a proposed schedule for a final hearing on its disclosure statement on Jan. 7 that would initiate the liquidation process.
Bankruptcy and Restructuring Failure
The organization initially filed for bankruptcy on Sept. 8 following an announcement by the Public Investment Fund of Saudi Arabia, which had financially backed the breakaway circuit since its inception. The fund stated that a shift in strategy meant it would cease funding LIV after the 2026 season. The bankruptcy plan outlines an orderly winding down of the league after a restructuring agreement with BC Partners Credit, which had committed $300 million, failed to secure sufficient support to launch a LIV 2.0 version that would have sustained operations into 2027.
In a summary of the bankruptcy plan, LIV explained that debtors determined no viable restructuring transaction remained available due to a lack of player participation and the termination of the Restructuring Support Agreement by BC Partners. The filing disclosed that the Public Investment Fund invested roughly $5 billion in equity capital, while LIV Golf consistently operated at a loss and remained years away from profitability. Approximately a week prior to filing for bankruptcy, LIV laid off 289 employees and furloughed 22 others. This occurred about a month after the league finished paying $15.6 million in retention bonuses to seven executives, which management deemed essential to completing the 2026 season and formulating restructuring plans.
Upcoming Hearings and Player Impact
A court hearing is scheduled for Nov. 24 to conditionally approve the disclosure statement, which provides necessary information for creditors and initiates the operational wind-down phase. The six-week period leading up to the Jan. 7 hearing will be used to establish voting rights and address objections from claimants, while a wind-down trust will oversee creditor payments, resolve legal claims, and manage remaining financial obligations.
A judge recently approved the separation of Jon Rahm from LIV, a departure that cost the two-time major champion a reported $100 million he was owed from his signing at the end of 2023. Meanwhile, remaining LIV players, who previously faced bans from the PGA Tour, must determine their next career steps. While some retain European tour membership or can pursue sponsor exemptions, access to the strongest events remains uncertain, and the PGA Tour has not indicated a pathway for player returns prior to the conclusion of the bankruptcy proceedings.
