LIV Golf Files for Chapter 11 Bankruptcy in New Jersey

LIV Golf filed for Chapter 11 bankruptcy protection in New Jersey on Tuesday, beginning a court-supervised attempt to restructure the breakaway circuit after Saudi Arabia’s Public Investment Fund ended its financial backing. Associated Press reporting says the filing lists more than $500 million in debt, while the official case site confirms the proceedings were opened on September 8.

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The creditor schedule shows how the financial strain reaches the playing roster. According to the AP, Jon Rahm, Bryson DeChambeau, Dustin Johnson and Cameron Smith are the four largest player creditors named in the filing. Fourteen current or former players appear among the 30 largest unsecured creditors, and BBC Sport reported that their listed claims total just over $45 million.

LIV says it has reached a restructuring support agreement with BC Partners Credit, which is intended to provide the basis for a recapitalization. The proposed transaction would keep the business operating and shift it toward majority ownership by players. ABC News reported that a $49.6 million bankruptcy loan from the Public Investment Fund is intended to support the company during the court process.

The plan described by chief executive Scott O’Neil would produce a substantially different competition. The AP reports that the proposed version would expand the field from 57 to 75 players, add a cut after 54 holes and introduce Monday qualifying. LIV also intends to reduce its schedule, organize the team concept more closely around national identities and retain a presence in markets including Australia, South Africa and Asia.

The bankruptcy follows the Public Investment Fund’s April decision to withdraw support after the 2026 season. The fund had invested more than $5 billion in LIV since the league began staging events in 2022. The AP says LIV’s final event of the season was held in Indiana in August and that four vendors have filed lawsuits alleging they were not paid.

The restructuring leaves the composition of any 2027 league unresolved. Rahm, DeChambeau, Johnson and Smith remain prominent names, but their status as creditors illustrates the contractual issues the process must address. Any transfer to player control, revised tournament schedule or settlement of claims remains subject to negotiations and bankruptcy-court approval.