LIV Golf has begun one of the most delicate processes since its arrival in professional golf by filing for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code. The league, which was born backed by the enormous financial power of Saudi Arabia’s Public Investment Fund, is now seeking to reorganise its operations amid a deep funding crisis and ensure the continuity of a project that, since its creation, has directly challenged the established order of the sport.
The decision comes after months of uncertainty surrounding the future of Saudi financial backing and a search for new investors to sustain the organisation’s operations. LIV Golf has signed a restructuring support agreement with BC Partners Credit, while continuing negotiations with its own players to move towards a majority ownership model in the hands of the athletes. The process, which still requires court approval, could profoundly transform the structure of a league that built its identity on major investments and multimillion-dollar contracts.
The financial crisis that led LIV Golf to Chapter 11
The path towards bankruptcy protection began to take shape when growing uncertainty over funding from Saudi Arabia’s Public Investment Fund (PIF) became evident. At the beginning of 2026, LIV Golf faced a significant shortage of resources and launched a series of presentations to potential investors with the aim of raising up to $350 million. The need to find new sources of capital represented a significant change for an organisation that, since its creation, had relied on the backing of one of the world’s most powerful sovereign wealth funds.
According to developments throughout the year, the PIF was expected to withdraw its funding at the end of 2026, although doubts over the continuity of its support had raised concerns even earlier. In the midst of this situation, the organisation needed to buy time to reorganise its financial structure. The agreement reached provides for the PIF to contribute $49.6 million in financing during the bankruptcy process, allowing LIV Golf to continue operating while the restructuring moves forward. Once the league emerges from Chapter 11 protection, BC Partners Credit and other minority shareholders are expected to take on a relevant role in the new financial phase.
Players could become the main owners
One of the most striking elements of the proposed restructuring is the change that could take place in the relationship between LIV Golf and its players. As part of the agreement presented, and provided it receives the necessary court approval, the joint venture would become majority-owned by the players themselves. The organisation has stated that it remains in advanced negotiations with the players, in a transformation that could make them not only the leading sporting figures of the circuit, but also stakeholders directly connected to the project’s economic future.
The proposal represents a significant shift for a league that entered golf as a rival to the PGA Tour, using enormous contracts to attract some of the sport’s most recognisable names. LIV built much of its strategy around its ability to offer salaries and conditions that reshaped the professional golf market and caused a deep division within the sport. Now, at a time when its main source of funding is preparing to step back, the possibility of granting players a majority stake presents a new formula for sustaining the competition and redefines the role they could play in an organisation still seeking to consolidate its place within the global golf ecosystem.
Last related articles
