KB News Desk
LIV Golf could seek bankruptcy protection as soon as next week after losing Saudi Arabian financial backing, the Financial Times reported Monday.
The breakaway golf league is expected to file in federal court in New Jersey, where the bankruptcy cases of companies including WeWork and Rite Aid were handled.
LIV recently approached players with a proposal to restructure guaranteed payments due after 2026. Those obligations are reportedly worth tens of millions of dollars, but the league initially offered only pennies on the dollar.
The Saudi Public Investment Fund, which established LIV in 2022 and has financed most of its operations, has declined to commit additional money. The fund has already spent billions on player contracts and tournament purses.
LIV subsequently sought financing from private equity firm BC Partners. Company representatives attended recent tournaments in Indiana and New Jersey to present a rescue plan that depended heavily on players accepting reduced payments.
Securing their approval may prove difficult. The DP World Tour has warned that golfers could be fined or suspended if they play in LIV tournaments scheduled opposite its events, potentially forcing them to choose between the two circuits.
The financial retreat comes amid reports that Saudi Arabia is curbing spending on other major projects, including Crown Prince Mohammed bin Salman’s Neom megaproject.
LIV is also contending with lawsuits from contractors alleging unpaid bills. Fees for outside advisers and newly appointed independent directors have reportedly reached tens of millions of dollars as the league continues to burn through cash.
US President Donald Trump has no ownership stake in LIV, but several of its tournaments have been staged at his golf properties. A collapse or contraction of the league could therefore reduce revenue at those courses.
(This article was produced with the assistance of AI. — Ed.)
