Report: LIV Golf’s financial crisis deepens as bankruptcy talks accelerate

The Financial Times has reported that LIV Golf could seek bankruptcy protection as early as next week as the Saudi-backed circuit races to secure financing for a slimmed-down operation from 2027.

According to people familiar with the negotiations cited by the Financial Times, LIV has begun approaching players about settlements covering guaranteed payments that extend beyond the end of the current season. 

Initial proposals are understood to have offered some golfers only a small proportion of the money they are contractually owed.

The situation highlights the financial challenge confronting LIV after Saudi Arabia’s Public Investment Fund (PIF), which launched and has bankrolled the breakaway league for the last five seasons, pulled the plug on funding the league past this season. 

LIV Golf's final tournament of 2026 took place in Indiana two weeks ago, a result of last week's scheduled Michigan Team Championship being cancelled. 

The Financial Times reports that LIV has spent recent weeks negotiating with the credit division of private capital firm BC Partners over potential financing.

BC executives have attended recent LIV Golf tournaments as they assess the league’s prospects and discuss a possible restructuring with players.

One proposal under consideration would involve a pre-packaged Chapter 11 bankruptcy, allowing LIV to restructure its existing obligations while establishing a new version of the circuit. 

Players could receive equity and other financial incentives in the proposed “LIV 2.0” in exchange for settling existing claims.

However, securing sufficient support from leading players has proved difficult.

People familiar with the situation told the Financial Times that golfers could ultimately fall into three broad groups: those who accept a settlement and join the revamped league; those who settle but choose not to continue with LIV; and those who reject the terms and pursue their contractual claims as unsecured creditors through bankruptcy proceedings.

PIF is expected to provide less than $100 million in debtor-in-possession financing to support a potential Chapter 11 process, according to the report, but does not currently intend to provide further funding.

The proposed new circuit would comprise about 10 tournaments around the world. Its players could face difficulties securing access to other competitions, however, with the DP World Tour warning that golfers could be fined or suspended for appearing in LIV events held during the same weeks as its tournaments.

LIV chief executive Scott O’Neil has argued that golfers should not face restrictions on competing across different tours.

The league’s accumulated tax losses are another potential attraction for investors. 

According to people familiar with BC Partners’ thinking, LIV has more than $5 billion in net operating losses across the US and UK. 

BC Partners is examining whether those losses could retain value as part of a broader sports investment strategy.

The private capital firm could invest as much as $300 million in a transaction involving LIV’s assets, potentially alongside other sports businesses. 

Liberty Strategic Capital, founded by former US Treasury secretary Steven Mnuchin, has also expressed preliminary interest.

LIV, PIF and BC Partners declined to comment, according to the Financial Times.