LIV Golf will shut down after its backers spent more than $5 billion on the league since its 2022 launch — dwarfing the $300 million BC Partners declined to invest this week. In a U.S. Bankruptcy Court hearing Thursday, the league’s attorney told a judge it will wind down operations after failing to secure the financing and player commitments needed for a proposed 2.0 relaunch.
BC Partners Pulls Its $300 Million Lifeline
On Wednesday, BC Partners opted against putting $300 million into LIV 2.0 because it failed to reach agreement with other major stakeholders, cutting off the breakaway league’s last viable path to a second season.
Attorney Matthew Williams told U.S. Bankruptcy Court Judge Michael B. Kaplan on Thursday that the shutdown decision wasn’t made until Thursday morning, and that the league would file a new Chapter 11 plan Monday.
As a result, the debtors are not currently proceeding with the LIV 2.0 plan,
Williams said. Instead, the debtors are toggling to a value-maximizing wind-down of their business.
Williams said the parties had negotiated intensely over several weeks, working through multiple iterations of financing for a reorganized league, but ultimately, despite everyone's best efforts, we just couldn't get to the level of combined financial and player support necessary for a viable LIV 2.0 within the required timeline.
BC Partners Exits 2027 Sponsorship
BC Partners had planned to replace Saudi Arabia’s Public Investment Fund as the league’s primary financier, but pulled out with too few top golfers committed to return in 2027. A source said about 30 players had pledged to compete next season and another 10 were still considering it, but negotiations with those golfers dragged on past an October 25 deadline.
From a $5 Billion PIF Backing to Chapter 11
LIV Golf voluntarily filed for Chapter 11 bankruptcy protection on Sept. 8, listing between $100 million and $500 million in assets and $500 million to $1 billion in liabilities.
In April, the PIF said it would stop funding the league after this season. The fund had poured more than $5 billion into the circuit, which drew stars away from the PGA Tour starting in 2022 by offering guaranteed contracts exceeding $100 million and tournaments with $30 million purses.
Williams told the court that on the current facts, a wind-down is the most likely way to maximize value for creditors, though he said the strategic initiative committee could revisit the decision if circumstances change.
The league is set to file its new Chapter 11 plan Monday.
Earlier coverage: LIV Golf to liquidate operations following bankruptcy and failed funding
Related reading
