LIV Golf to liquidate assets and wind down operations as plans to launch LIV 2.0 fall apart
Michael Miller/ISI Photos
On Thursday, in U.S. Bankruptcy Court in New Jersey, lawyers representing LIV Golf announced they would be moving their Chapter 11 case from a restructuring phase to a liquidation phase, preparing to sell their remaining assets and ultimate shut down the league after five years and $5 billion in investment.
"We believe the wind down path is the best path," LIV attorney Matthew Williams told the court during a hearing that lasted just 13 minutes.
The decision was made in the wake of BC Partners, a private capital firm, withdrawing its bid to relaunch the league in 2027 after agreeing last month to pay as much as $300 million to fund what was being touted as LIV 2.0. However, after delaying a player commitment deadline, LIV and BC Partners hadn't finalized agreements with enough golfers to satisfy the company to move forward with the investment.
“BC Partners Credit supported a transaction that aligned the interests of players and investors, offering a credible path toward building a sustainable future for LIV Golf,” the company said in a statement. “While there was great support for the league, we are disappointed that mutually acceptable terms could not be reached among the various stakeholders.”
Multiple reports say that LIV had secured the signing of more than 30 players for 2027, and 10 were more saying they were interested, including reportedly some marquee players. But they did not offer their committment by the Oct. 25 deadline, and while reportedly asking to come back to the negotiating table on Wednesday night when news that BC Partners was pulling out had been made pubiic, BC Partners decided it was too late.
LIV's creditors committee will meet on Nov. 20. A formal liquidation plan will need to be approved by the court, with the priority being paying creditors from the tour’s assets. Lawyers said the official wind-down progress will to begin by next Monday.
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In a statement from LIV Golf, CEO Scott O'Neil said: “Building a global platform designed to bring new, younger, and more diverse fans to the sport of golf has been the round of a lifetime for all of us. LIV Golf was fun, demanding, inspiring, at times challenging — but always rewarding.”
Only four players—Cameron Tringale, Richard Bland, Ben Campbell and Brendan Steele—had publicly stated they would be returning in 2027. When the DP World Tour announced that it would not allow LIV players to also hold membership on its tour in 2027, it made it a tougher sell for those thinking of continuing with the league.
In the past month, many of LIV's top players had publicly announced they were not signing on for LIV 2.0, including Jon Rahm, Sergio Garcia, Tyrrell Hatton, Ian Poulter, Louis Oosthuizen, Abraham Anser and Graeme McDowell.
LIV's future had been uncertain since April, when it lost the financial backing of Saudi Arabia's Public Investment Fund. The PIF had reportedly invested an estimated $5 billion-plus into the league since it launched in October 2021. The first event was played in Jun 2022 in London.
Under the proposed restructuring, BC Partners would have financed an attempted LIV return in 2027 through what the league described as a “recapitalization transaction.” BC Partners has ties to GSE Worldwide, the agency representing a sizable portion of LIV’s roster. But Jon Rahm, Tyrrell Hatton and others opted out and others remained noncommittal. Bryson DeChambeau had previously stated his want to stay with LIV, but had been publicly quiet over the past month, leaving LIV a league without a roster.
LIV’s financial troubles have extended beyond its players. Several contractors say they have not been paid for their work, while the league also faces a lawsuit from the Premier Golf League alleging breach of confidence and conspiracy by unlawful means.
Editor's Note: This is a developing story. Check back for further updates.