LIV Readies for Next Phase of Bankruptcy As Court Proceedings Ramp Up

LIV Golf is set to enter the next phase of its Chapter 11 bankruptcy proceedings this week, as court hearings ramp up in New Jersey. The league is seeking to "reject or assume executory contracts and unexpired leases," which includes contracts with star players like Jon Rahm that form a significant portion of its estimated liabilities between $500 million and $1 billion.

LIV's assets are valued at $100 million to $500 million, and the league had $15 million in cash available when it entered bankruptcy. The Saudi Public Investment Fund (PIF) provided LIV with a $50 million loan, and BC Partners, a private equity firm, is considering a $10 million loan to help with the bankruptcy process. However, some bankruptcy experts are skeptical about LIV's ability to emerge from bankruptcy, as it could potentially wind down all operations through Chapter 7 liquidation.

Kooyonga Golf Club in Australia has filed a motion seeking clarification on whether a 2027 tournament scheduled by LIV will proceed as planned. The club has spent over $200,000 preparing for the event, but LIV has not released a 2027 schedule. BC Partners has set an Oct. 13 deadline for LIV to secure new contracts from an unspecified number of players or face walking away from its $300 million funding deal.

LIV's unsecured creditors committee, including only one player, will meet on Oct. 15 to develop a reorganization plan, although bankruptcy attorney John J. Sparacino warns that any claims from unsecured creditors are "worthless" given LIV's limited cash reserves. Additional court hearings are scheduled for Oct. 22 and Nov. 5.