LIV Golf drops its relaunch and prepares to wind down
LIV Golf is preparing to close after a proposed relaunch failed to secure sufficient funding and player commitments. Its lawyer told a US bankruptcy court that a new plan would prioritise creditors. The decision followed BC Partners’ withdrawal from a planned investment, while the league left room for third-party alternatives during the wind-down.
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The relaunch loses its backing
LIV Golf, the professional golf league, is preparing to wind down after abandoning its proposed LIV 2.0 relaunch. Attorney Matthew Williams told a US bankruptcy court that the financial backing and player commitments required for the new competition had not come together. BC Partners withdrew a proposed investment of 300 million dollars after failing to agree terms with key stakeholders.[1], [2]
Williams said the closure decision was taken on Thursday morning, following BC Partners’ withdrawal the previous day. Debtors, players, the creditors committee and Saudi Arabia’s Public Investment Fund had joined the negotiations. Jon Rahm, Sergio Garcia and Tyrrell Hatton were among the golfers who had not committed to the proposed league.[1]
Assets will be sold to compensate creditors
The bankruptcy filing of 8 September listed assets between 100 million and 500 million dollars, against liabilities between 500 million and 1 billion dollars. Assets include property, remaining contracts, intellectual property and trademarks. Liquidation would involve selling those holdings to compensate creditors, whose claims range from money owed to players to payments due to vendors.[2]
The Public Investment Fund is listed as a secured creditor, a status giving it priority in liquidation. Brooklyn Law School professor Jodi Balsam said that priority could be disputed. She also identified possible scrutiny of payments made before bankruptcy, where some earlier payments could be reclaimed for creditors if the relevant legal conditions are met.[2]
Court documents also show retention payments exceeding 15.5 million dollars to executives, including more than 6 million dollars for chief executive Scott O’Neil. Golf Channel reported that the rationale for those payments would face examination during the bankruptcy process.[2]
The liquidation plan still needs approval
Williams told Judge Michael B. Kaplan that a new Chapter 11 plan is due on Monday. Liquidation still requires approval. LIV and the creditors committee are scheduled to meet on 20 November, with another bankruptcy hearing on 24 November. The league said it remains open to third-party alternatives that could preserve value during the wind-down, and Williams said the relevant committee could revisit closure if circumstances change.[1], [2]
