Report: LIV Golf ‘facing bankruptcy’ as players offered equity in shock ‘LIV Golf 2.0’ plan

LIV Golf could be facing a major financial shake-up, with multiple insiders reportedly expecting the Saudi-backed league to file for bankruptcy in the coming weeks.

According to Flushing It, the move would allow LIV Golf to restructure its existing player contracts and what is described as an “extensive debt burden”.

Flushing It, which is run by Tom Hobbs, claims players with outstanding payments on multi-year or rolling contracts have already been approached about taking equity in a potential “LIV Golf 2.0”, with the size of the offers reportedly varying according to a player's stature and existing contract.

The account claims the equity on offer could potentially make LIV Golf's players the majority owners of a restructured organisation, although that would depend on funding being secured.

There is currently no confirmation from LIV Golf that a bankruptcy filing or such a restructuring is imminent.

Jon Rahm could be key to LIV Golf's future

The league's best player Jon Rahm is reportedly central to the situation.

Flushing It describes the two-time major champion as “the biggest factor”, claiming he is still owed a nine-figure sum from the deal he signed before joining LIV Golf for the 2024 season.

With multiple years reportedly remaining on the Spaniard's contract, Flushing It claims the former World No.1 could become LIV Golf's biggest creditor if the league enters bankruptcy proceedings.

Rahm's position is particularly interesting after he declined to guarantee he would play on the league in 2027 when questioned at LIV Golf UK last week. 

Flushing It claims the Legion XIII captain therefore has “an enormous role in deciding the future of the league both on and off the course”.

Players have also reportedly been given non-binding Indication of Interest documents to sign relating to the proposed future structure.

Reaction is said to have been mixed, with some players committed to whatever happens next while others have reportedly not signed or returned the documents.

LIV Golf Team Championship uncertainty

The uncertainty allegedly extends to LIV Golf's upcoming Team Championship in Michigan.

Flushing It claims multiple vendors and contractors are owed money and were told earlier this week that the event had been cancelled. 

Travel and accommodation for contractors and vendors have reportedly also been cancelled, while work at the venue has yet to begin.

That would be significant given the event is scheduled to take place in approximately four weeks.

However, there appears to be conflicting information within LIV's leadership at the moment. 

Flushing It claims the league's CEO Scott O'Neil is “planning for the Team Championship” in an email that was sent to players and staff on Wednesday.

As a result, it remains unclear whether the season finale will go ahead as planned, be moved to a different date or take place in another form. 

It's understood players on the league still have very little clarity as to what is going on with the Team Championship with just a month of the season left. 

Read Flushing It's latest post here: 

Funding deal could change everything

There is some potentially positive news for LIV Golf, but the league's funding position remains a major question.

In a stunning report from New York Post journalist Mark Cannizzaro on Wednesday, the breakaway league is close to securing a $250m funding deal.

It comes several months after the Saudi Arabian Public Investment Fund (PIF) confirmed it will no longer fund LIV Golf beyond the end of the current season.

But despite some welcome good news for the league, Flushing It notes any new deal will require approval from the PIF, which still owns LIV Golf.

Even if funding is secured, however, the account suggests LIV Golf's biggest challenge could be keeping hold of its superstar players. 

Flushing It was informed by a number of players and staff members after LIV Golf's event at Valderrama in early June that the subsequent eight-week break in the schedule was “imperative for the future of the league”.

Eight weeks later, there is still said to be no substantial clarity for anyone on the league, and that is a major cause for concern. 

LIV Golf has not offered an official comment for Flushing It's latest post, while the account said its sources must remain anonymous because of the nature of the situation.

For now, the most serious claims — including a potential bankruptcy filing, player equity offers and the cancellation of the Team Championship — remain unconfirmed.

But with LIV Golf's existing PIF funding coming to an end after this season and a replacement funding arrangement yet to be confirmed, the coming weeks will prove critical for the future of the league.