LIV Golf files for bankruptcy protection with $45m owed to players, who are free to make exodus

LIV Golf has filed for bankruptcy protection in the United States.

The bankruptcy filing was made in the federal district court of New Jersey, where LIV Golf set up a subsidiary earlier in the summer.

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The imposed Chapter 11 protection suspends a US company’s obligations to its creditors, allowing time to coordinate its debts or sell off elements of the business.

The filing of bankruptcy means players, who are understood to be owed at least a collective $45million (£33m) will be permitted to leave LIV Golf.

Court documents outline money owed to LIV Golf’s creditors with the 30 largest unsecured claims.

At the top of the list is Jon Rahm with an unsecured claim of $7.5m (£5.5m).

Meanwhile, Bryson DeChambeau ($5.7m – £4.2m), Dustin Johnson ($5.5m – £4.1m), Cameron Smith ($4.8m – £3.5m) and Tyrrell Hatton ($3.4m – £2.5m) are also among the top 30 creditors, as well as Brooks Koepka, who left to re-join the PGA Tour in January. However, he has an unsecured claim of $1.7m (£1.25m).

The court documents also show that LIV Golf estimates its assets at $100m-$500m (£74m-£370m) and its liabilities at between $500m and $1bn (£370m-£739m).

The fall of LIV Golf

The Saudi-backed breakaway tour invested £3.6billion in luring golf’s top talents away from the PGA prior to its inception in 2021.

However, the tour’s long-term future was plunged into doubt earlier this year when Saudi Arabia’s Public Investment Fund (PIF) opted to discontinue its funding beyond the 2026 season.

LIV, who cancelled two events this season, informed its staff that it would be laying off the majority of its employees.

Last month, LIV Golf cut the prize money for their event in Indianapolis.

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But in a statement on Tuesday, LIV explained that it intends to restructure the organisation and return in a new form, majority owned by players and built around the fans.

LIV Golf 2.0 in the works?

LIV Golf chief executive Scott O’Neil said: “The people of LIV Golf, led by the players, have continued to show incredible resilience, commitment, and a shared belief in what we are building.

“Thanks to their tireless work, LIV Golf has created a foundation to entertain and inspire the next generation of global golf fans around the world.

“This process gives us the structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf.” 

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However, “no definitive decisions regarding the 2027 schedule or individual events are being announced at this time,” the LIV statement added.

The futures of high-profile stars such as Jon Rahm and Bryson DeChambeau are unclear although the pair have been linked with returns to the PGA Tour.

Contracts under the initial LIV iteration will end due to the court filing with outstanding amounts owed to players, addressed through the court process.

Pressed on his future at LIV Golf amid concerns over its future, Rahm gave little away this week.

Quizzed on whether he was aware of the future picture, he told BBC Sport: “Yes and no. It hasn’t really changed from my last interview in Indianapolis.

“There’s just a lot of things in place, right? There’s a lot of things that could happen and it’s one of those things where time’s gonna tell.

“I still have a contract with LIV 1.0 that I’m more than willing to fulfil, so like I said, time will tell.”

Tyrrell Hatton and Bubba Watson are other high-profile names expected to call time on their LIV adventure.