LIV Golf files for bankruptcy protection, details emerge of new version from 2027

LIV Golf, the bankrupt golf tour that faced financial turmoil and division within the sport, has filed for bankruptcy protection according to documents from a New Jersey court. The tour, which incurred liabilities of $500 million to $1 billion among 1,000 creditors, including notable players like Bryson DeChambeau and Jon Rahm, is set to restructure and return in a new form.

CEO Scott O'Neil stated that this process provides the organization with the necessary structure and time to pursue a landmark transaction and embark on the next chapter of LIV Golf.

The bankruptcy filing was anticipated after LIV Golf dismissed a significant portion of its staff and abandoned its season-ending team championship following the loss of backing from Saudi Arabia's Public Investment Fund (PIF). The Middle Eastern fund had invested an estimated $5 billion in the tour before withdrawing its support.

LIV Golf's star players, Rahm, DeChambeau, and Dustin Johnson, hold the largest unsecured claims totaling over $5 million each in immediate past-due payments, as per the bankruptcy filing. However, these figures do not encompass the future contract values of some golfers, which can reach tens of millions of dollars each, according to the Financial Times.

LIV Golf aims to host tournaments across five continents, including Australia, South Africa, Mexico, England, Hong Kong, and the US, and intends to expand fields to 75 players with added cut-offs and opportunities for players to earn their way into the tour. The tour also plans to introduce additional pathways for players to gain entry, such as Monday qualifiers.

Additionally, the expanded focus will be on engaging young fans through live music and team competitions that celebrate national identities, inspired by World Cup-style competition. However, the success of these plans depends on the presence of top stars like DeChambeau and Rahm, who are currently considering their future with the tour.