LIV Golf Files for Chapter 11 Bankruptcy with Debts Up to $1 Billion as Saudi PIF Scales Back Funding
LIV Golf has officially filed for Chapter 11 bankruptcy protection in the United States, marking a dramatic setback for the Saudi-backed circuit launched four years ago with high ambitions to disrupt the PGA Tour's longstanding dominance over professional golf.
In conjunction with the court filing, Saudi Arabia’s Public Investment Fund (PIF)—the league’s principal financial backer—has agreed to provide $49.6 million in debtor-in-possession (DIP) financing to fund operations throughout the court-supervised restructuring. However, the circuit's long-term viability remains uncertain as direct Saudi funding wanes, prompting urgent efforts to establish an alternative commercial model.
Debts Outweigh Assets as Star Players Top Creditor List
Court filings indicate that LIV Golf estimates its assets between $100 million and $500 million, set against total liabilities ranging from $500 million to $1 billion. The figures highlight the severe financial strain following years of aggressive capital outlay to lure the world’s elite golfers with lucrative, guaranteed contracts.
The league's creditor roster features several of the sport’s most prominent figures:
Jon Rahm: Owed over $7.4 million.
Bryson DeChambeau: Owed approximately $5.7 million.
Dustin Johnson: Outstanding claims total roughly $5.4 million.
To maintain player commitments, LIV management is negotiating debt-for-equity settlements. Under the proposed framework, outstanding contractual obligations would be converted into equity stakes in the reorganized league, effectively turning star players into franchise co-owners and business partners.
Restructuring and the Post-PIF Horizon
LIV Golf confirmed it is in advanced talks with key players regarding operational ownership. Meanwhile, private credit firm BC Partners Credit alongside other institutional investors are expected to provide exit financing once the corporate reorganization concludes.
The bankruptcy filing follows months of diminishing financial support from Riyadh. The Public Investment Fund previously resolved to halt direct subsidies to LIV earlier this year, aligning with a broader strategic reorientation of its sovereign investment portfolio toward initiatives capable of generating stronger commercial and financial returns.