LIV Golf filed for Chapter 11 bankruptcy protection in New Jersey on Tuesday, listing more than $500 million in debt following the end of Saudi funding. Star players including Jon Rahm and Bryson DeChambeau, alongside YouTube creator Rick Shiels, rank among the league’s largest creditors as leadership pursues a restructured 2027 relaunch.
According to court filings, the league accumulated liabilities between $500 million and $1 billion against estimated assets ranging from $100 million to $500 million. The filing follows the decision by Saudi Arabia’s Public Investment Fund to scale back its investment, citing geopolitical shifts after spending more than $5 billion on the venture since its 2022 launch.
Star Players and Content Creators Line Up as Creditors
LIV’s top-tier talent roster now finds itself at the front of the queue in bankruptcy court. Of the top 30 creditors listed in the New Jersey filing, 14 are players seeking millions in unpaid compensation. Jon Rahm leads the unsecured claims at nearly $7.5 million, though filings indicate this figure represents specific unsecured claims rather than the total value of multiyear participation agreements. Bryson DeChambeau is listed with a claim of approximately $5.77 million marked as contingent, while Dustin Johnson is owed about $5.4 million through a claim flagged as contingent, unliquidated, and disputed. Cameron Smith rounds out the leading group with roughly $4.8 million owed.
Beyond traditional tour professionals, the league’s debt ensnares prominent digital media figures. Rick Shiels Media is owed $1.4 million in unsecured debts, placing the golf instructor and YouTube star among the 24 entities owed more than $1 million. Shiels faced substantial public backlash when he joined LIV as an ambassador in January 2025, weathering subscriber losses and online criticism over the tour’s Saudi backing before the league’s financial structure unraveled.
Public Sector Fallout and Canceled Regional Tournaments
The financial fallout extends far beyond tournament participants to state governments and municipal venues. Louisiana is the only state listed among the top 30 unsecured creditors, with an outstanding claim of about $1.22 million. The state had offered LIV a $7.2 million incentive package—including a $5 million hosting fee—to bring a tournament to City Park’s Bayou Oaks Golf Course in June. After state officials Gov. Jeff Landry and Louisiana Economic Development Secretary Susan Bourgeois announced the event, it was canceled in April amid mounting questions over the league’s stability.
State officials enacted a clawback provision requiring LIV to repay $1 million it had already received. Emma Wagner, a spokesperson for Louisiana Economic Development, confirmed that the $1 million has not yet been repaid, noting that formal discussions between the state and the golf organization are ongoing. The domestic cancellation mirrored broader operational contractions, including the axing of a Michigan event and the merger of its team championship into a final gathering in Indiana.
Restructuring Plans and the Push for LIV Golf 2.0
To keep operations afloat through the court-supervised restructuring, the Saudi wealth fund has agreed to provide $49.6 million in debtor-in-possession financing, pending judicial approval. Meanwhile, private equity firm BC Partners Credit is positioned to anchor exit financing alongside other minority investors as the league attempts to pivot toward a sustainable business model.
Chief Executive Scott O’Neil outlined a revised vision dubbed LIV Golf 2.0
, which aims to convert player compensation into equity under a player-first ownership model. Under this proposed framework, players would hold a majority ownership position. Planned adjustments for an intended early 2027 relaunch include expanding the competitive field to 75 golfers, introducing a cut for the first time, establishing Monday qualifiers, and anchoring team identities around nationalities across a global schedule spanning five continents.
Uncertainty Surrounding Star Player Departures
The restructuring process leaves the immediate allegiance of LIV’s marquee names open to question. Because the bankruptcy filing alters existing participation agreements, players may find clearer pathways to exit their contracts and explore returns to traditional circuits like the PGA Tour or DP World Tour. Jon Rahm addressed his current standing while competing in the Irish Open, telling reporters he remains tied to his existing agreement.
“I still have a contract with LIV 1.0 that I’m more than willing to fulfill. Like I said, time will tell.”
Jon Rahm, professional golfer, via BBC Northern Ireland
Whether veterans choose to stay or test the open market will dictate the viability of the league’s next chapter. With debt claims mounting, legal proceedings underway in both New Jersey and the United Kingdom, and venue partners seeking clawbacks, LIV’s survival depends entirely on whether its reconstituted ownership model can retain the star power it spent billions to acquire.
