Saudi-backed LIV Golf may file for bankruptcy next week
The entity would use a Chapter 11 filing to implement a transaction that will see players have control of the league
Saudi-backed LIV Golf is reportedly preparing for bankruptcy filing as early as next week, according to the Financial Times. The financial crisis stems from the kingdom's sovereign wealth fund, the Public Investment Fund (PIF), refusing to provide additional funding to the struggling golf tour. LIV Golf had previously secured a multibillion-dollar investment from the PIF, but Saudi Arabia indicated in the spring that it would withdraw its investment.
The tour's chairman, Yasir al-Rumayyan, who is also the governor of the PIF, is expected to resign. LIV Golf has sent settlement offers to players who were promised millions in guaranteed payouts, but now those payouts have been drastically reduced to just a few cents on the dollar. The tour has incurred losses in excess of $1.1 billion outside of the US and likely several billion dollars in the US since its establishment.
Despite being accused of backing high-risk projects, the Saudi government has recently cancelled or scaled down several investments, including the Mukaab, a massive cube-shaped structure in Riyadh, and plans for a desert ski resort and an artificial lake.
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- Saudi-backed LIV Golf preparing for bankruptcy filing middleeasteye.net
- Saudi Arabia's LIV Golf tournament faces bankruptcy semafor.com
- LIV Golf prepares for bankruptcy filing in September ft.com
- LIV Golf prepares for bankruptcy filing in September, FT reports channelnewsasia.com
