LIV Golf to liquidate assets as bankruptcy judge approves wind-down

LIV Golf will stop operating its tour and begin liquidating its remaining assets. The breakaway league told a U.S. Bankruptcy Court judge on Nov. 5 that it is abandoning its plans for a restructured version of the tour. The decision follows the withdrawal of a $300 million financing offer from BC Partners Credit on Nov. 4. That withdrawal came after negotiations with top golfers collapsed.

The tour will submit a new Chapter 11 bankruptcy plan to the U.S. Bankruptcy Court of New Jersey on Nov. 9. Blanka Wolfe, a corporate bankruptcy analyst at Octus, said the league will likely liquidate unless a new investor appears. She noted that Saudi Arabia's Public Investment Fund, or PIF, invested $6 billion over five years. If the PIF could not make the operation viable, it is difficult to imagine another investor taking the same risk.

Players such as Bryson DeChambeau, Jon Rahm, and Cameron Smith face complex hurdles to return to the PGA Tour. The PGA Tour has not offered these players the same return terms given to Brooks Koepka earlier this year. Koepka returned to the tour as a nonmember after winning two events on the DP World Tour. He donated $5 million to charity and forfeited equity and bonuses to secure his spot.

PGA Tour CEO Brian Rolapp stated that the offer to Koepka was a one-time deal. He has said since then that the tour has no plans to repeat that arrangement. Rahm acknowledged earlier this week that he is probably not getting the same deal as Koepka. Some sources told ESPN that DeChambeau and others who sued the PGA Tour may face more discipline than a standard one-year suspension. That suspension would typically keep players out until Aug. 24, 2027, which is the one-year anniversary of their last LIV event.

The DP World Tour serves as a potential pathway for former LIV members. Players like Sergio Garcia and Tyrrell Hatton paid their fines and were granted releases for 2026. They committed to playing the DP World Tour in 2027. Those with DP World Tour status can earn one of 10 PGA Tour cards available next year. However, it remains unclear what punishment the PGA Tour will impose on players attempting to return.

In the bankruptcy process, the PIF is first in line to be paid. It holds a nearly $500 million loan to LIV Golf from June. Players and other unsecured creditors, such as golf courses and service providers, are second to last in the payment hierarchy. Kevin Eckhardt, a corporate bankruptcy attorney with Octus, said the players are likely to receive very little, if any, money from the liquidation. He noted that the PIF is the primary creditor and will be paid before others.

A committee of unsecured creditors, which includes the players, is seeking a consensual resolution with the PIF. Wolfe said this suggests the committee is trying to extract a settlement in exchange for releasing legal claims. Eckhardt added that the PIF likely wants to avoid lawsuits that could lead to depositions of Saudi officials. In 2022, the PIF resisted attempts to depose its leader, Yasir Al-Rumayyan, claiming state immunity. The next court hearing in the case is scheduled for Nov. 24.