LIV Golf, the upstart professional golf league backed by Saudi Arabia’s government, has filed for Chapter 11 bankruptcy protection from its creditors.
LIV Gold courted controversy for trying to compete head-to-head against the Professional Golfers’ Association (PGA), and for attracting professional players by paying them millions of dollars just to play in its tournaments.
The purse at one LIV Golf tournament held at the end of August totaled $40 million U.S., dwarfing the payouts from the rival PGA Tour.
The golf venture had been backed by Saudi Arabia’s Public Investment Fund. However, the league has now entered into a restructuring agreement as its finances have deteriorated.
The Public Investment Fund said it planned to pull its funding from LIV Gold at the end of the current 2026 tournament schedule.
Earlier this year, management at LIV Golf tried unsuccessfully to raise up to $350 million U.S. from stakeholders to keep the league going.
As part of the proposed bankruptcy deal, LIV Golf is expected to be majority owned by its players moving forward. The league said it remains in talks with several golfers.
However, it’s unclear which players will take an ownership stake in LIV Golf, whose popularity has faded after a strong initial start in 2021.
Professional golfers that have played on the LIV Golf circuit and earned millions of dollars for doing so include Phil Mickelson and Dustin Johnson.
With its finances under pressure and its audience declining, LIV Golf agreed to merge with the PGA Tour, although a final deal on a proposed merger never materialized.
It’s not clear if the PGA will still be interested in merging with LIV Golf now that it has filed for bankruptcy.
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