Why LIV Golf, which shook up sport in 2022 with Saudi Arabia money, is winding down

LIV Golf is ceasing operations rather than launching a new version due to insufficient financial backing, according to a lawyer representing the organization during a bankruptcy court hearing in New Jersey on Thursday. Matthew Williams of Gibson Dunn revealed that the debtors are not moving forward with the LIV 2.0 plan and are instead opting for a value-maximizing wind-down of their business.

LIV Golf had faced financial troubles after Saudi Arabia cut funding in April, having spent over $5 billion on the league since 2022. The organization filed for bankruptcy in September. After the Iran war, PIF shifted its investment strategy in April and announced it would no longer fund LIV Golf after the 2026 season. The Asian Tour, which received financial support from LIV for an International Series, decided in July to renew its alliance with the PGA Tour and European Tour.

However, as LIV attempted to emerge from bankruptcy, the European Tour imposed a significant ultimatum, stating that anyone who signed with LIV 2.0 would not be eligible for membership in the DP World Tour, potentially disqualifying European players from the Ryder Cup. Numerous top players, including Jon Rahm, Sergio Garcia, Louis Oosthuizen, and Tyrrell Hatton, announced their withdrawal from LIV, along with young talents such as David Puig of Spain and Tom McKibbin of Northern Ireland.

The year saw Brooks Koepka exiting his LIV deal with one year remaining, and the PGA Tour established a path for players to return, albeit with financial penalties. Patrick Reed chose not to extend his deal and is set to return to the PGA Tour next year through his European tour performance. Rahm had suggested he would be willing to pay the same price as Brooks Koepka, although it was unlikely that the same deal would be offered.

LIV 2.0 aimed to offer player equity and prize money significantly higher than the $20 million purses initially provided, but it ultimately failed to attract and retain top talent. The league's final event took place in August in Indianapolis, won by Michael La Sasso, who did not qualify for the European Tour Q-School.