FILE PHOTO: Golf - LIV Golf Invitational - London - Centurion Golf Club, St Albans, Britain - July 5, 2023 General view of the 18th hole at the Centurion Golf Club Action Images via Reuters/Paul Childs/File Photo

LIV Golf files for Chapter 11 bankruptcy in New Jersey

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Sept 8 : Professional men's golf league LIV Golf filed for Chapter 11 bankruptcy in New Jersey on Tuesday, saying it intended to restructure its business with a $49.6 million bankruptcy loan provided by the Public Investment Fund of Saudi Arabia.

The company has between $500 million and $1 billion in liabilities, and between $100 million and $500 million in assets, according to its Chapter 11 petition.

LIV Golf said the bankruptcy will allow it to go forward with the support of a new backer, BC Partners Advisors L.P., and transition to a player-first ownership model. BC Partners and other potential minority investors are expected to provide exit financing and sponsor the company's debt restructuring, LIV Golf said.

LIV has been preparing for its next iteration ever since the PIF said in April that further investment in the rebel circuit no longer aligned with its strategy and that it would cut funding at the close of the 2026 season. PIF owns 100 per cent of LIV Golf's equity, according to its bankruptcy petition.

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The PIF has invested more than $5 billion in LIV Golf since its launch in 2022 and the breakaway circuit used massive signing bonuses to poach big-name players from the PGA Tour like Bryson DeChambeau, Jon Rahm and Dustin Johnson.

Rahm, DeChambeau and Johnson are the company's top three unsecured creditors, according to the petition. Each is owed more than $5 million.

LIV Golf said that bankruptcy is meant to keep the league in business while transitioning to an innovative player-first ownership model. The company hopes to exit from bankruptcy by early 2027.

"We believe deeply in LIV Golf’s future, the opportunity in front of us, and the people who will help us realize it," LIV Golf CEO Scott O'Neil said in a statement.

The professional men's golf league laid off most of ​its workforce in August, while it worked to secure new funding.

Source: Reuters

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