LIV Golf's last-ditch financing plan collapses, leaving scant assets in wind-down

LIV Golf's unsuccessful search for new financing has resulted in a collapse, potentially leaving players as free agents and creditors with minimal recoveries, according to a restructuring expert. The Saudi-launched circuit had been attempting to build a rival to the PGA Tour since 2022, but its efforts to secure funding from London-based BC Partners fell through.

John Sparacino, a principal at law firm McKool Smith with over 30 years of experience in complex bankruptcies and restructurings, explained that LIV needed an equity-backed partner willing to finance substantial initial losses. However, BC Partners required LIV to secure commitments from a critical mass of elite players, a condition that became increasingly uncertain.

The league's golfers, including those owed money under existing contracts, may now be free to pursue opportunities elsewhere, though disputes over amounts owed could persist. Sparacino suggested that those claims might not be worth litigating if recoveries are expected to be minimal. PGA Tour commissioner Brian Rolapp has stated that the tour will not engage in conversations with LIV players until their contracts are terminated.

Notable players such as Jon Rahm and Bryson DeChambeau have already parted ways with LIV, securing separate agreements. The final chapter of LIV Golf may be uneventful, given the limited assets and potential litigation, according to Sparacino.