LIV Golf initiates Chapter 11 bankruptcy to restructure after Saudi PIF funding withdrawal, revealing over $45 million in unpaid player salaries.

The controversial LIV Golf league has filed for Chapter 11 bankruptcy protection in the United States, a move signaling a major restructuring after Saudi Arabia's Public Investment Fund (PIF) withdrew its multibillion-dollar financing. This critical step, taken on Tuesday, aims to “preserve the company's business” while addressing significant financial obligations.

Among the most pressing issues is the substantial sum owed to its star players. Court documents reveal that over $45 million (£33 million) in unpaid salaries is due to 14 current and former LIV golfers for the third quarter of 2026 alone. This list of creditors is topped by two-time major winner Jon Rahm, who is owed $7.5 million (£5.5 million).

The bankruptcy filing also indicates a potential shift for the league's players, who now have the option to leave their contracts. This development arrives as LIV Golf announces a new investor, BC Partners, stepping in following PIF's decision in April to pull its financial backing, according to reporting by BBC Sport - Top Stories.

Millions Owed to Golf's Biggest Names

The Chapter 11 petition outlines the 30 largest unsecured claims against LIV Golf, with many of its highest-profile recruits featuring prominently. Beyond Jon Rahm, other major names on the list include Bryson DeChambeau ($5.7 million), Dustin Johnson ($5.5 million), Cameron Smith ($4.8 million), and Tyrrell Hatton ($3.4 million).

Notably, Brooks Koepka, who departed LIV Golf to rejoin the PGA Tour in January, also holds an unsecured claim of $1.7 million (£1.25 million). These figures represent amounts owed and unpaid for the third quarter of 2026, not the full contractual values for these players, according to a source familiar with the data.

The court documents estimate LIV Golf's assets to be between $100 million and $500 million (£74 million-£370 million), while its liabilities are significantly higher, ranging from $500 million to $1 billion (£370 million-£739 million). This stark contrast underscores the financial challenges leading to the bankruptcy filing.

The Saudi Exit and a New Investor

Saudi Arabia's Public Investment Fund, which spearheaded LIV Golf's controversial launch in 2021 with investments exceeding $5 billion (£3.7 billion), announced its withdrawal of funding in April. PIF stated that the “substantial investment required by LIV Golf over a longer term” was “no longer consistent” with its strategic goals, despite remaining committed to other sports investments.

To facilitate the Chapter 11 process, PIF is providing a bankruptcy loan of $49.6 million (£36.6 million), known as 'debtor in possession' (DIP) financing. Simultaneously, LIV Golf has confirmed international investment firm BC Partners as its proposed new investor, indicating a path forward for the league's next phase.

LIV Golf chief executive Scott O'Neil articulated this transition in a statement, saying, “This process gives us the structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf – one built around the fans, an innovative, player-first ownership model, and a part of the global golf ecosystem.”

Player Contracts and LIV's Evolving Future

The bankruptcy filing carries significant implications for LIV Golf's players. Sources indicate that contracts under the previous iteration of LIV Golf will now terminate due to this court action. Players are no longer obligated to sign on for “LIV 2.0”, regardless of any multi-year agreements they previously held.

This development creates uncertainty about players' immediate futures and when they might be free to engage in discussions with other tours. Jon Rahm, when pressed about his future recently, remained tight-lipped, stating, “There's just a lot of things in place, right? There's a lot of things that could happen and it's one of those things where time's gonna tell. I still have a contract with LIV 1.0 that I'm more than willing to fulfil, so like I said, time will tell.”

LIV Golf intends to launch its new majority player-owned league early next year, with proposed changes including expanded field sizes to 75 players, the introduction of a cut, qualifiers, and more teams based on “national identities.” Prize money is expected to be lower than the PGA Tour but higher than the DP World Tour, as the league aims for a more “sustainable business model.”

Frequently Asked Questions

What is Chapter 11 bankruptcy?

Chapter 11 bankruptcy is a legal process in the United States that allows a company to restructure its debts while continuing its business operations, providing time to reorganize or sell parts of the business.

Why did LIV Golf file for bankruptcy protection?

LIV Golf filed for Chapter 11 protection because Saudi Arabia's Public Investment Fund (PIF) withdrew its multibillion-dollar funding, leading the league to seek a restructure to address financial obligations and secure a new investor.

Which golf players are owed money by LIV Golf?

Court documents list 14 current and former LIV Golf players among the top 30 creditors, including Jon Rahm ($7.5 million), Bryson DeChambeau ($5.7 million), Dustin Johnson ($5.5 million), Cameron Smith ($4.8 million), and Tyrrell Hatton ($3.4 million).

Can LIV Golf players now leave the league?

Yes, due to the Chapter 11 bankruptcy filing, players' existing contracts under LIV Golf 1.0 are expected to terminate, giving them the option to leave and no obligation to join the proposed “LIV 2.0” league.

What are LIV Golf's plans for its future?

LIV Golf plans to launch a new majority player-owned league early next year, focusing on a sustainable business model with player equity, expanded fields, a cut, qualifiers, and national identity-based teams, supported by new investor BC Partners.