Law firm representing Bryson DeChambeau’s LIV Golf player group set to wind down

The law firm representing Bryson DeChambeau and a group of LIV Golf players in the league’s Chapter 11 bankruptcy case is reportedly preparing to wind down its operations, marking another development in the uncertainty surrounding LIV’s future.

Weil, Gotshal & Manges has recommended an orderly wind-down following partner departures and unsuccessful merger discussions with Willkie Farr & Gallagher, according to multiple reports. . 

The firm’s partners are expected to vote on the recommendation in the coming days. Should the recommendation be approved, the firm plans to continue serving clients throughout the wind-down process and will “remain committed to supporting its colleagues”, read a statement from Weil, Gotshal & Manges.

The law firm represents a group of players, including DeChambeau, in connection with LIV Golf’s Chapter 11 bankruptcy proceedings. 

It is understood the proposed wind-down does not mean DeChambeau and others will need to change their legal representation.

The development comes as LIV Golf attempts to secure its future beyond the 2026 season after Saudi Arabia’s Public Investment Fund (PIF) announced in April that it would stop funding the league past this season. 

LIV filed for Chapter 11 bankruptcy protection in New Jersey on September 8, with court documents listing liabilities of between $500 million and $1 billion and assets estimated at between $100 million and $500 million.

PIF owns 100 per cent of LIV Golf’s equity, according to the bankruptcy petition, and has reportedly invested upwards of $5 billion in the league since its launch in June 2022.

Court filings have also revealed the costs associated with maintaining the organisation after PIF’s funding withdrawal, including $15.6 million allocated to retain seven executives. CEO Scott O’Neil’s retention payment was listed at $6.375 million.

Other disclosures detailed substantial payments to players in the year before the bankruptcy filing, including $26.6 million to Jon Rahm and $13.9 million to DeChambeau.

BC Partners deal offers a potential route forward

LIV Golf is pursuing a restructuring arrangement involving BC Partners Credit, with a bankruptcy judge approving an agreement on October 14 that provides for up to $300 million in loans, investments and financing.

The proposed ownership structure would give players a collective 52.5 per cent stake, with BC Partners and minority investors holding 45 per cent and management retaining the remaining 2.5 per cent.

The plan is intended to give players a more substantial ownership interest in the league, although further proceedings and negotiations remain important to its future.

DeChambeau’s LIV Golf future remains uncertain

DeChambeau’s future with LIV Golf remains unclear as the league works towards its proposed 2027 model.

LIV has sought permission to reject certain player contracts as part of its bankruptcy proceedings, with DeChambeau and Dustin Johnson among the 19 players named in the relevant motion. The ultimate implications for those players will depend on the court process and any subsequent negotiations.

Separately, Johnson is reportedly leading a group of more than 10 players seeking over $100 million in outstanding contractual payments from PIF, according to The Athletic. The group is said to want a settlement before deciding whether to join LIV Golf’s proposed next iteration.

Reports have also suggested that LIV Golf 2.0 could feature individual event prize funds of around $9 million, down from the $20 million purses associated with its existing format, alongside at least 10 tournaments and a greater emphasis on team golf. Details of the revised model remain subject to change.

November hearing and player deadline

LIV Golf’s bankruptcy proceedings are due to return to court for a hearing on November 5, while BC Partners originally set a Sunday deadline for players to decide whether they were on board with LIV Golf 2.0.

However, the player deadline can be extended under an amended restructuring agreement, meaning it is not necessarily a final cut-off for decisions about the league’s future.

The new couple of weeks will prove important for LIV Golf as it works to progress its bankruptcy proceedings and secure player commitments for 2027. 

While Weil has confirmed it will continue serving clients during its wind-down over the coming months, the longer-term implications for DeChambeau and the other players it represents remain unclear.