LIV Golf files for bankruptcy protection in the US
The LIV Golf league has filed for bankruptcy protection in the state of New Jersey, US. Its main financial partner, Saudi Arabia’s Public Investment Fund (PIF), has agreed to provide $49.6 million in debtor-in-possession financing during the bankruptcy proceedings.
Financing and reorganization
As The National reports, LIV Golf said it is holding “advanced negotiations” with players over transferring control of the business to them. The league expects BC Partners Credit and other investors to provide financing to exit the Chapter 11 process and capitalize the reorganized company.
Earlier this year, Saudi Arabia decided to stop funding LIV Golf as part of a broader strategic shift toward investments with higher returns. According to the publication’s estimate, PIF invested about $5 billion in the league over four years.
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The situation with players
LIV Golf entered the golf scene in 2022, signing major contracts with leading professional players and offering a faster tournament format. The league sought to compete with the PGA Tour.
The funding cutoff was announced in April, and in the following months LIV Golf failed to find another source of funds that would have allowed it to avoid bankruptcy. Some leading golfers returned to the PGA Tour and faced financial penalties. LIV Golf is trying to retain other players by offering settlements on payments under previous contracts and an ownership stake in the league.
