LIV Golf Closes Operations After Debtors Reject $300 Million Rescue Plan
The Saudi-backed tour, which spent over $5 billion since its 2022 launch, will wind down after key players and courts blocked a reorganization effort.
By Giulia Marshall ·
More than $5 billion in investment from Saudi Arabia’s Public Investment Fund (PIF) will end with the 2026 season, marking the final chapter for the professional golf league that upended the sport in 2022. An attorney for LIV Golf told a New Jersey bankruptcy court on Thursday that the venture’s debtors have chosen to wind down the business rather than pursue a proposed reorganization. The decision confirms the end of the league, which filed for Chapter 11 bankruptcy on Sept. 8.
The league had attempted to secure a new path forward through a $300 million investment pledge from BC Partners Credit. This funding was intended to create a financially sustainable version of the tour, often referred to as LIV 2.0. However, the effort failed to unite the necessary stakeholders. BC Partners stated in a statement that while the transaction aligned the interests of players and investors, mutually acceptable terms could not be reached among the various groups.
Top-tier players signaled their lack of interest in the restructured league early in the process. Jon Rahm, who had agreed to forfeit claims against LIV valued at approximately $100 million to exit his contract, returned to the European tour. Sergio Garcia, Tyrrell Hatton, and Louis Oosthuizen also moved away from the venture. Brooks Koepka, another prominent name who had signed with LIV, opted to return to the PGA Tour, which currently imposes a one-year ban on players dating from their last appearance on the rival circuit.
The collapse of the rescue plan follows a series of financial and strategic setbacks for the organization. In July, the Asian Tour, which had received financial support from LIV for its International Series, decided to renew its alliance with the PGA Tour and the DP World Tour in Europe. This move weakened LIV’s international standing. Additionally, Guy Kinnings, the CEO of the European tour, stated last month that players signing up for the new LIV venture would not need to apply for European tour membership. This policy placed European players at risk of losing their eligibility for the Ryder Cup.
The decisive blow came in April, two weeks after the Masters and two months after the start of the Iran war. PIF, which had bankrolled the league since its inception, announced a change in its investment strategy. The fund declared it would no longer pay for LIV Golf after the 2026 season, effectively cutting off the primary source of capital that had sustained the operation for four years.
Financial scrutiny has also intensified regarding executive compensation during the bankruptcy period. Records show that LIV Golf paid $15.6 million to retain seven executives between the time PIF and the league filed for bankruptcy. This included a payment of $6.375 million to CEO Scott O’Neil. While such payments are common for companies attempting to emerge from bankruptcy, legal questions now arise over whether these payments can be voided since the company is ceasing operations rather than continuing.
The league was originally led by Greg Norman, who previously tried to launch a world tour in 1994 but was blocked by Arnold Palmer and the PGA Tour. With Saudi backing, Norman promoted LIV as a louder alternative to traditional golf, featuring 54-hole shotgun starts and $25 million prize pools. The league struggled initially with production costs, as it lacked a broadcast deal in its first year. It secured a deal with the CW Network in 2023 and later signed Fox Sports in 2025, but these revenue streams were insufficient to counter the $5 billion expenditure.
The shutdown leaves players and investors to navigate the transition back to established tours or seek new opportunities. The bankruptcy court process will now focus on the orderly wind-down of assets and liabilities. For the golf world, the departure of LIV removes the primary challenger to the PGA Tour’s dominance, consolidating the professional landscape once again under traditional structures.
