Los Angeles (United States) (AFP) – LIV Golf, the breakaway tour that spent billions of dollars luring top players away from the PGA and triggered bitter divisions within the sport, filed Tuesday for bankruptcy protection. The filing at a New Jersey court indicates the organization, which lost its deep-pocketed Saudi investors earlier this year, intends to restructure and return in a new form, though the fate of star players including Bryson DeChambeau and Jon Rahm remains unclear.
“This process gives us the structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf,” said CEO Scott O’Neil, whose organization had already laid off the majority of its staff earlier this month. LIV still intends to return in a new form next year “built around the fans, an innovative, player-first ownership model, and a part of the global golf ecosystem,” said O’Neil. But “no definitive decisions regarding the 2027 schedule or individual events are being announced at this time,” the LIV statement added.
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Launched in 2022, free-spending LIV lost the backing of Saudi Arabia’s Public Investment Fund (PIF) earlier this year. The Middle Eastern fund had poured an estimated $5 billion into the tour before abruptly pulling the plug. The PIF will now provide a loan worth nearly $50 million for the bankruptcy and reorganization process, the LIV statement showed. LIV’s star players Rahm, DeChambeau, and Dustin Johnson hold the largest unsecured claims against the tour, totaling more than $5 million each. The court filing, reviewed by AFP, showed LIV owes up to $1 billion in liabilities to at least 1,000 creditors. LIV has partnered with British investment group BC Partners for the restructuring effort, documents showed. LIV Golf is also seeking recognition of the US bankruptcy filing in England and Wales to cover its international assets and operations.
– ‘LIV 2.0’ – Tour officials have previously pledged that a “2.0” version of the tour will re-emerge under new investors next season, with a shorter schedule and reduced prize money. Further details emerged for the proposals on Tuesday. LIV intends to host tournaments across five continents, in locations including Australia, South Africa, Mexico, England, Hong Kong, and the US. “We intend to expand our fields to 75 players, introduce a cut, and create additional pathways for players to earn their way into LIV Golf, including Monday qualifiers,” it said.
But much will depend on whether top stars including DeChambeau and Rahm remain. Multiple outlets reported that players’ contracts with LIV Golf would be voided as a result of the bankruptcy, freeing them up to decide whether to remain with the tour in its new guise or pursue their debts. Tuesday’s statement said “the Company remains in advanced discussions with” players, including on “creating an ownership structure aligning players’ interests with the League’s long-term success.” “Players will have the opportunity to share directly in the value they help create,” said O’Neil, in an open letter to fans. LIV did not immediately respond to AFP request for comment on the matter. Widespread reports have linked several LIV stars with potential returns to the PGA Tour and other series, though the PGA said it currently has no plans to offer LIV players a pathway back.
© 2024 AFP
