Dustin Johnson leads LIV Golf revolt as players demand PIF payments

Dustin Johnson is leading a group of more than 10 LIV Golf players seeking severance payments from Saudi Arabia's Public Investment Fund (PIF), with the golfers claiming they are owed more than $100m in outstanding contractual payments.

The group wants a financial settlement before deciding whether to commit to LIV Golf's proposed new structure, adding further uncertainty to the league's future as it attempts to restructure ahead of the 2027 season.

Two-time Masters champion Bubba Watson and Belgium's Thomas Detry are also involved, with Johnson's long-time lawyer David Cornwell representing the players.

According to reporting by Gabby Herzig of The Athletic, none of the golfers in the group are expected to sign the current restructuring agreement between LIV and its new investor, BC Partners Credit.

• LIV 2.0: Which players are staying, leaving or undecided?

The development comes amid a growing exodus of players from the breakaway league. 

Jon Rahm, Tyrrell Hatton and Ian Poulter are just three big names to have already announced they will not compete on LIV 2.0.

Players have been given a deadline of today, Sunday 25 October, but BC Partners could push that deadline back. 

LIV Golf players want settlement before committing to 2027

Cornwell reportedly said the players made significant career decisions based on promises made by the PIF when they joined LIV Golf, arguing that those commitments should be considered as the league's original structure is wound down.

“Given their reliance on these promises, our group seeks a sensible severance payment as part of the wind-up of LIV,” Cornwell said.

He added that the players' decisions on whether to release potential claims against the PIF and join LIV 2.0 would depend largely on how the fund handles the conclusion of the original operation.

The reported dispute centres on contracts agreed during LIV's recruitment drive, which persuaded several of golf's biggest names to leave the established professional circuit for lucrative deals.

Cornwell has described the decisions as “career-altering”, with the players now reluctant to commit to LIV's future until they have greater clarity over outstanding payments.

PIF reportedly offered two cents for every dollar owed

The negotiations could prove difficult, with a source briefed on the matter telling The Athletic that the PIF initially offered settlements worth just two cents for every dollar owed under the players' contracts.

The sovereign wealth fund reportedly views itself as an equity investor in LIV Golf rather than an organisation responsible for meeting all the league's outstanding contractual obligations.

A source familiar with the PIF's position said the fund had stopped investing in LIV and was not involved in discussions with players or their legal representatives.

LIV's bankruptcy proceedings add another complication. The league filed for Chapter 11 bankruptcy protection in September, and it expects the settlement process to be handled through the courts.

Players account for a significant proportion of LIV's unsecured creditors, with seven of the 10 largest unsecured creditors and 14 of the 30 biggest being golfers.

Johnson's group also overlaps with a separate group of players involved in the bankruptcy proceedings. 

However, Bryson DeChambeau, who leads that cohort, is not working with Johnson and Cornwell on the severance negotiations.

Executive bonuses add to LIV's financial scrutiny

The dispute has also drawn attention to payments made to LIV executives shortly before the bankruptcy filing.

According to The Athletic, executive retention bonuses totalled more than $15.6 million in the weeks before LIV entered Chapter 11, including a reported $6.375 million payment to chief executive Scott O'Neil.

Cornwell warned that the PIF's handling of the situation could have implications beyond golf, urging professional sports organisations and player unions to pay attention to how the fund treats athletes following its investment in a sporting venture.

LIV, meanwhile, is working with BC Partners on a proposed 10-event schedule for 2027, split between five tournaments in the United States and five international events.

However, securing player commitments appears to be proving a challenge while the dispute over outstanding contracts remains unresolved.

The Johnson-led group is seeking clarity on its financial position before agreeing to LIV's next phase, leaving the league facing another significant hurdle as it attempts a rebuild.