LIV Golf files for Chapter 11 as player contracts face reset

LIV Golf filed for Chapter 11 bankruptcy protection in the United States on Tuesday as it works to restructure after Saudi Arabia's Public Investment Fund decided to withdraw its multibillion-dollar backing. BBC Sport reported that the filing means players are free to leave, while LIV said the court-supervised process is intended to preserve the business.

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The petition was filed in federal district court in New Jersey, where LIV established a subsidiary earlier this summer. Chapter 11 gives a US company time to reorganize its debts or sell parts of its operations while postponing obligations to creditors. PIF is providing $49.6 million in debtor-in-possession financing to support the process, according to BBC Sport.

Existing player agreements are expected to be a central part of the reset. BBC Sport said contracts from the previous version of LIV will end through the court process, with money owed to players and other creditors handled there. Players are under no obligation to join the proposed replacement league even if they previously held multiyear LIV contracts. It remains unclear when they may be able to negotiate with other tours.

LIV identified international investment firm BC Partners as its proposed new investor and said it plans to begin a new, majority player-owned league early next year. The organization described its goal as a more sustainable business model. Proposed changes include a 75-player field, a cut, qualifying routes, more nationally aligned teams, player equity and the return of individual commercial rights.

The filing follows PIF's April decision to stop funding LIV after spending more than $5 billion since the competition's 2021 launch. PIF said the level of long-term investment LIV required was no longer consistent with its strategy, while maintaining that sports remains a priority area. The 2026 LIV season ended early, adding to uncertainty surrounding the competition and leading players including Jon Rahm and Bryson DeChambeau.

Rahm, speaking before the Irish Open on Tuesday, did not commit publicly to a next step. He told BBC Sport that several outcomes remained possible and said he was willing to fulfill his LIV 1.0 contract, while emphasizing that time would determine what happens. LIV chief executive Scott O'Neil said the restructuring creates time to pursue the proposed transaction and develop a player-first ownership model, but participation in the planned league and the timing of any player moves remain unresolved.