LIV Golf ends operations after failed $300 million rescue plan
The tour filed for bankruptcy in September and will now liquidate assets rather than launch a restructured version for 2027.
By Oliver Bennett ·
Golf has entered a period of consolidation after LIV Golf announced it is ceasing active operations. The move marks the end of a five year experiment that sought to challenge the PGA Tour with high stakes events and large financial incentives. The decision was made public on Thursday during a hearing in New Jersey federal bankruptcy court.
Matthew Williams, an attorney for Gibson Dunn representing the debtors, stated that the organization is no longer pursuing a plan called LIV 2.0. He told the court that the company is shifting to a value maximizing wind down of its business. This liquidation phase replaces the original intent to relaunch the tour in 2027 with a new structure focused on player equity and sustainable finances.
The financial backing for this new chapter came from BC Partners Credit, which pledged a $300 million investment. However, key players including Jon Rahm, Sergio Garcia, Tyrrell Hatton, and Louis Oosthuizen declined to accept the proposed terms. BC Partners Credit released a statement noting that while they found support for the league, they were disappointed that mutually acceptable terms could not be reached among the various stakeholders.
LIV Golf originally launched in June 2022 under the leadership of Greg Norman. The tour used funds from the Public Investment Fund of Saudi Arabia to offer nine figure signing bonuses to top players. The organization spent more than $5 billion before the Saudi fund changed its investment strategy in April. PIF stated it would stop funding the tour after the 2026 season ended.
The tour filed for Chapter 11 bankruptcy on September 8. In the months leading up to that filing, LIV paid $15.6 million to retain seven executives. This amount included a $6.375 million payment to CEO Scott O Neil. While such payments are common for companies attempting to emerge from bankruptcy, the shift to a liquidation plan raises questions about whether those payments can be voided now that the company is not moving forward.
Jon Rahm has already agreed to forfeit claims against LIV, which are estimated to be worth approximately $100 million, to exit his contract. He has returned to playing on the European Tour. The PGA Tour maintains a one year ban on players who compete in LIV events, calculated from the date of their last appearance on the tour. Rahm indicated on Tuesday that he was willing to pay the same financial penalties as Brooks Koepka to secure a path back to the PGA Tour.
The Asian Tour, which received financial support from LIV for an International Series, decided in July to renew its alliance with the PGA Tour and the DP World Tour. Guy Kinnings, the CEO of the European Tour, stated last month that anyone signing up for the abandoned LIV 2.0 plan did not need to apply for membership on his tour. This decision placed European players at risk of having no role in the Ryder Cup.
In an interview with The Scotsman earlier this week, Kinnings discussed the need to protect his tour. He noted that the entity in question spent over $7 billion with an aim to destroy the DP World Tour. The final LIV event took place in August in Indianapolis. Michael La Sasso won that tournament. He recently failed to advance past the second stage of European Tour qualifying school.
