LIV Golf's biggest stars now have a choice after bankruptcy protection filing is confirmed

LIV Golf's first era is coming to an end.

The breakaway league has entered Chapter 11 bankruptcy protection in the United States as it attempts to restructure following Saudi Arabia's decision to withdraw its multibillion-dollar financial backing.

The move could have major consequences for LIV Golf's players, with existing contracts expected to be brought to an end through the court-supervised process.

That means golfers will not be obliged to join the proposed new version of the league, leaving some of the biggest names in the sport with a significant choice to make.

The bankruptcy case is being handled in New Jersey, where LIV established a US subsidiary earlier this summer.

Chapter 11 gives companies breathing room while they reorganise their finances, allowing LIV to work through its outstanding obligations and explore a route forward without immediately facing all of its creditors' claims.

The filing reveals that several of LIV’s biggest names — including Jon Rahm, Bryson DeChambeau, Dustin Johnson and Cameron Smith — are still owed millions. 

As part of the process, Saudi Arabia's Public Investment Fund (PIF) is providing $49.6m in debtor-in-possession financing to help keep the business operating during the restructuring.

PIF's involvement comes despite its decision to stop providing the long-term funding that fuelled LIV's extraordinary spending during its first few seasons.

More than $5bn is understood to have been invested by the sovereign wealth fund since LIV launched in 2021.

That enormous financial commitment helped the breakaway circuit attract a host of major champions, with players offered huge contracts, guaranteed payments and substantial prize funds.

But PIF announced in April that it would no longer bankroll LIV, saying the scale of investment required over the long term was no longer consistent with its strategy.

The league has since identified a potential route forward, with international investment firm BC Partners confirmed as its proposed new investor.

O'Neil insists LIV is entering a new phase

LIV Golf CEO Scott O'Neil has moved quickly to reassure fans that the bankruptcy filing should not be viewed simply as the end of the league.

In a letter issued after the filing, O'Neil acknowledged that LIV was entering a period of transition but presented the restructuring as an opportunity to build a more sustainable competition.

He pointed to the league's rapid growth since its launch, highlighting its global schedule, team format and efforts to attract younger fans through a combination of golf, music and entertainment.

But the focus of his message was firmly on what comes next.

O'Neil said the Chapter 11 process would give LIV the time and structure required to deal with its previous financial obligations while working towards a transaction with BC Partners.

He stressed that the objective was not simply to preserve the existing league, but to create a stronger model for the future.

That future would put greater emphasis on player ownership, with golfers expected to receive equity in the league and regain individual commercial rights.

The teams would also be given a bigger role, with LIV hoping they can develop into long-term sports businesses rather than simply remaining franchises within a golf league.

O'Neil also reiterated LIV's intention to remain a truly global competition.

The league expects to continue staging events across five continents, with markets such as Australia, South Africa, Mexico, England, Hong Kong and the United States all part of its plans.

There are also proposals to expand fields to 75 players, introduce a cut and create additional routes into the league through qualifying events, including Monday qualifiers.

The changes would give LIV a more conventional competitive structure while retaining the elements that have defined its identity.

Music, entertainment and fan interaction would remain central to tournament weekends, while more teams are expected to adopt national identities in an attempt to create rivalries similar to those seen in international team competitions.

O'Neil also confirmed that LIV intends to continue its efforts to attract younger audiences, including maintaining free admission for children under 12 at its events.

However, the CEO was careful to stress that the next phase remains subject to the Chapter 11 process and the necessary court approvals.

LIV says it intends to resume global team competition in 2027 under new ownership, although a definitive schedule has not yet been confirmed.

For fans who have already bought tickets for 2027 events, LIV says those tickets currently remain valid.

What happens to LIV's biggest stars?

For all the talk of new investors and a revamped competition, the most intriguing part of LIV's next chapter could be what happens to its players.

Rahm, DeChambeau and the league's other established stars such as Johnson, Smith, Tyrrell Hatton, Joaquin Niemann and Sergio Garcia were central to the original project.

Their decision to leave the PGA Tour and join LIV helped transform the sport's landscape and triggered the bitter divide that has dominated professional golf for the past few years.

Now, however, LIV needs those same players to choose its future rather than simply fulfil existing commitments.

The proposed new model offers a different proposition.

Instead of relying on enormous signing fees and guaranteed contracts, LIV is promising players a direct stake in the value they help create.

That could give some golfers a compelling reason to stay.

But lower prize funds and the loss of the extraordinary financial guarantees that characterised LIV 1.0 could also make other options more attractive.

It remains unclear when players will be able to formally discuss moves to other tours, with the Chapter 11 proceedings likely to determine how and when those conversations can take place.

Rahm still coy on playing future

Rahm offered little clarity when asked about his future ahead of this week's Irish Open.

The two-time major champion suggested there were still several possible outcomes and admitted that the situation remained difficult to predict.

"There's just a lot of things in place, right?" Rahm told BBC Sport NI.

"There's a lot of things that could happen and it's one of those things where time's gonna tell."

Those comments came before the bankruptcy filing was confirmed, but Rahm's position now takes on added significance.

DeChambeau has been more positive about LIV's prospects, saying after the final event of the 2026 season that he believed there was plenty of potential in what comes next.

But optimism about the concept does not necessarily guarantee that every player will return.

LIV Golf's next chapter

O'Neil's latest message to fans is ultimately one of reassurance.

He argues that LIV has already changed professional golf by bringing team competition to a global audience and attracting a younger generation to the sport.

Now, he wants the league to become a more established part of the wider golf ecosystem.

O'Neil has previously described LIV's role as being to "complete, not compete" within professional golf, suggesting the league wants to move beyond the intense rivalry that defined its relationship with the PGA Tour.

Whether that vision can become reality remains to be seen.

LIV Golf no longer just needs to convince the world that it can survive. 

It needs to convince its own players that its future is worth being part of.