LIV Golf Dissolves After Bidders Reject Reorganization Plan
The Saudi-backed league will wind down operations after creditors chose liquidation over a proposed $300 million bailout.
By Rafael Collins ·
LIV Golf is ceasing operations. An attorney representing the league told a New Jersey bankruptcy court on Thursday that the company’s debtors have abandoned a proposed reorganization. Instead, they will wind down the business, ending the Saudi Arabia-backed venture that launched in 2022.
The Saudi Arabia Public Investment Fund, known as PIF, provided the initial capital for the league. It invested more than $5 billion since the start. In early 2026, PIF announced it would stop funding the league after the current season. The league filed for Chapter 11 bankruptcy on Sept. 8, hoping to find a new financial partner.
BC Partners Credit offered a $300 million investment to transform the group into a new entity called LIV 2.0. The firm aimed to create a financially sustainable model. However, key stakeholders could not agree on terms. BC Partners stated in a written release that the deal aligned player and investor interests. The firm expressed disappointment that mutually acceptable terms were not reached among the various parties involved.
Several high-profile players rejected the new structure. Jon Rahm and Sergio Garcia, along with Tyrrell Hatton and Louis Oosthuizen, were not interested in the proposal. Brooks Koepka, a major tournament winner who had signed with LIV, chose to return to the PGA Tour. Rahm agreed to forfeit claims against LIV, valued at approximately $100 million, to exit his contract. He is now playing on the European tour while hoping for a path back to the PGA Tour.
The PGA Tour currently imposes a one-year ban on players based on their last LIV appearance. This rule affects the return timeline for former LIV members. The league also faced scrutiny over executive compensation. Between the PIF announcement and the bankruptcy filing, LIV paid $15.6 million to retain seven executives. CEO Scott O’Neil received $6.375 million. Questions remain about whether these payments can be voided since the company is not moving forward.
External pressures accelerated the collapse. The Asian Tour renewed its alliance with the PGA Tour and the DP World Tour in July. This move came after the Asian Tour had received financial support from LIV for an International Series. Guy Kinnings, the CEO of the European tour, stated last month that players signing up for LIV 2.0 did not need to apply for European tour membership. This decision placed European players at risk of losing their Ryder Cup eligibility.
The final blow came in April. Two weeks after the Masters and two months after the start of the Iran war, PIF shifted its investment strategy. The fund declared it would no longer pay for LIV Golf after the 2026 season. Greg Norman, the original founder, had promoted the league with loud music, 54-hole shotgun starts, and $25 million prize funds. The league initially lacked a broadcast deal, covering production costs itself. It secured a deal with the CW Network in 2023 and Fox Sports in 2025.
