LIV Golf confirms shutdown plan in New Jersey bankruptcy court

LIV Golf has confirmed plans to wind down its operations after efforts to secure a replacement ownership and funding arrangement failed. In a statement on November 5, the league said its restructuring agreement with BC Partners Credit had been terminated because the parties could not resolve outstanding terms. The proposed transaction is not expected to proceed at this stage.

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The announcement changes the direction of LIV's bankruptcy proceedings in New Jersey, where it had sought to preserve the business through a recapitalization. The league said the court-approved timetable had always included a wind-down option if an acceptable reorganization could not be agreed. Special committee members Gene Davis and Jon Zinman backed that course as the most responsible available choice.

According to BBC Sport, LIV lawyer Matt Williams told Thursday's hearing that the proposed successor, known as LIV 2.0, had not attracted enough financial backing and player support within the time available. BC Partners had offered potential financing of $300 million, but withdrew on Wednesday. High-profile players including Jon Rahm and Sergio Garcia had already decided to leave.

The financial problems followed Saudi Arabia's Public Investment Fund withdrawing its backing in April, with LIV seeking bankruptcy protection in September, BBC Sport reported. The Associated Press reported that the league began competition in June 2022, using substantial signing bonuses to recruit leading players from the PGA Tour. The attempted relaunch would have continued the competition under a different financial structure.

The next step is a disclosure statement and wind-down plan, which BBC Sport reported will be filed by November 9. PIF lawyer Scott Greissman told the hearing that the fund respected the decision and wanted to work toward completing an orderly wind-down by the end of the year. The hearing did not establish how much unsecured creditors were owed.

LIV has not ruled out a different outcome if another viable proposal emerges. Its statement said it would continue considering alternatives involving third parties during the wind-down process. That qualification leaves room for further developments, but the current plan is to close operations, not proceed with the proposed relaunch.