LIV Golf to Liquidate After $300M Funding Deal Ends

BC Partners Credit pulled its $300 million financing offer on Wednesday, forcing LIV Golf to announce the closure of its tour.

Key points: 1. LIV Golf told a U.S. Bankruptcy Court judge on Thursday that it is abandoning its LIV 2.0 launch plan. The league will file a new Chapter 11 reorganization plan with the U.S. Bankruptcy Court of New Jersey on Nov. 9. 2. The collapse of the financing deal leaves players such as Bryson DeChambeau, Jon Rahm, and Cameron Smith without a guaranteed home. PGA Tour Commissioner Brian Rolapp offered these golfers a return path in January, but only Brooks Koepka accepted the terms. Rolapp has stated the offer will not be renewed.

3. If the tour liquidates, Saudi Arabia's Public Investment Fund (PIF) holds first priority for repayment on a nearly $500 million loan made in June. Unsecured creditors, including players and course operators, will rank behind the PIF but ahead of shareholders.

LIV Golf told the court it would continue to consider proposals from outside parties during the shutdown process. Blanka Wolfe, a corporate bankruptcy analyst at Octus, said liquidation would likely proceed unless an unexpected investor emerges. The PIF invested $6 billion in LIV over five years.

Players facing a return to the PGA Tour must first prove they are free of their LIV contracts. Based on the penalty applied to Patrick Reed, Rahm and Smith could face a ban until Aug. 24, 2027. DeChambeau may face additional discipline because he remained in litigation against the PGA Tour after other players withdrew.

The DP World Tour offers an alternative for players with status. Rahm, Sergio Garcia, and Tyrrell Hatton paid their fines and received releases for 2026. They have committed to playing that tour in 2027. Eligible players can compete for 10 PGA Tour cards next year, though specific penalties remain undefined.

LIV's $5 billion in net operating losses could offset future taxes if the company survives, but the value would disappear in a liquidation. Players owed hundreds of millions in contract money are unlikely to recover those sums through standard liquidation. An attorney for the unsecured creditors committee said it is seeking a consensual resolution with the PIF, which could involve a settlement in exchange for releasing legal claims. The next court hearing is set for Nov. 24.