LIV Golf filed for Chapter 11 bankruptcy protection in New Jersey with more than $500 million in debt after Saudi Arabia’s Public Investment Fund ended its financial support. The restructuring plan features $49.6 million in debtor-in-possession financing and a player-first ownership model designed to launch LIV Golf 2.0 by 2027.
Chapter 11 Filing and the End of Saudi Financial Backing
LIV Golf formally entered court-supervised bankruptcy protection in the United States Bankruptcy Court in New Jersey, listing estimated liabilities between $500 million and $1 billion against assets estimated between $100 million and $500 million. The restructuring follows the abrupt end of financial backing from the Public Investment Fund of Saudi Arabia, which pulled its funding following the conclusion of the 2026 season in August.
The withdrawal of Saudi support triggered layoffs, schedule compression, and the cancellation of planned stops, including tournaments in New Orleans and Michigan. To keep operations afloat during the reorganization, the investment fund has agreed to provide $49.6 million in debtor-in-possession financing, pending court approval.
“Today, we took an important step forward to get there. LIV Golf has entered a court-supervised restructuring process that provides us with the time and framework to address previous financial obligations and complete a transaction that will make the League’s next phase a reality.”
Scott O’Neil, CEO of LIV Golf, via news release
Player Creditors and Unsecured Claims
The bankruptcy filings reveal that 14 of the top 30 listed creditors are professional golfers holding unsecured claims. Jon Rahm leads the unsecured claims at nearly $7.5 million, followed by Bryson DeChambeau, Dustin Johnson, Cameron Smith, Adrian Meronk, and Tyrrell Hatton.
| Player Creditor | Claim Amount (USD) |
|---|---|
| Jon Rahm | unspecified |
| Bryson DeChambeau | unspecified |
| Dustin Johnson | unspecified |
| Cameron Smith | unspecified |
| Adrian Meronk | unspecified |
| Tyrrell Hatton | unspecified |
The league is disputing the claims filed by DeChambeau and Johnson, according to reporting from USA Today. Meanwhile, top stars remain tied to existing contracts while evaluating their options under the court-supervised process.
Louisiana Economic Development and the Canceled New Orleans Stop
State entities also find themselves exposed in the financial fallout. Louisiana is listed among the largest creditors with an unsecured claim of about $1.22 million, stemming from a canceled June tournament at City Park’s Bayou Oaks Golf Course.
State officials, including Gov. Jeff Landry and Louisiana Economic Development Secretary Susan Bourgeois, had originally assembled a $7.2 million incentive package funded through the state’s major event fund. That package included a $5 million hosting fee and $2.2 million for course upgrades.
After the event was scrapped, state officials invoked a clawback provision requiring the repayment of $1 million already disbursed to the league. Senate President Cameron Henry noted that the agreement featured explicit protections should they falter.
According to Emma Wagner, a spokesperson for Louisiana Economic Development, formal discussions remain ongoing to recover the funds.
BC Partners and the Proposed LIV Golf 2.0 Model
To secure an exit from Chapter 11, LIV Golf has entered a restructuring agreement with BC Partner Advisors LP acting as the primary source of exit capital alongside potential minority investors. Chief Executive Officer Scott O’Neil outlined plans for LIV Golf 2.0,
which aims to transition the enterprise into a player-first ownership model.
The proposed operational changes include expanding field sizes from 57 to 75 players, introducing a 54-hole cut, adding Monday qualifiers, and structuring team concepts around nationalities. League leadership intends to target a relaunch as early as 2027.
Uncertainty Ahead for Professional Golf Ecosystems
The bankruptcy filing alters the competitive landscape for players who jumped from the PGA Tour during LIV’s initial multibillion-dollar expansion in 2022. While Brooks Koepka returned to the PGA Tour earlier in the year subject to penalties including the forfeiture of player equity shares and bonus eligibility,
other top competitors face immediate choices regarding their contractual standing.
As Jon Rahm noted while competing at the Irish Open, time will tell
how player commitments hold up against the restructured league’s new financial terms.
