Trump-backed LIV Golf, a rival to the PGA Tour, nears bankruptcy

[Financial News]  

LIV Golf, which had strong backing from U.S. President Donald Trump, is expected to file for bankruptcy protection as early as next week, the Financial Times reported on the 31st of last month, citing sources. The filing is expected to be made with the United States Bankruptcy Court for the District of New Jersey, which has handled major recent bankruptcy cases involving WeWork and Rite Aid.
The bankruptcy protection filing comes after Saudi Arabia, once the league's powerful financial backer, stepped away.
According to the report, the golf league recently presented a settlement proposal to players who joined the circuit and are due guaranteed payouts worth tens of millions of dollars after 2026. The initial offer amounted to only a few cents on the dollar.
Sources said the proposal was driven by the Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund, which launched the league in 2022 and has been reluctant to provide additional funding. LIV Golf has relied heavily on Saudi financial support.
With Saudi backing fading, the league quickly turned to private equity firm BC Partners. It negotiated a financing package, and BC Partners executives recently attended LIV events in Indiana and New Jersey to explain the business plan to players. A key part of that plan is accepting the settlement offer.
The problem is that top players have little incentive to accept it. The DP World Tour, which stages events in Europe and the Middle East, has warned that players who take part in the LIV circuit could face fines or suspensions if they compete in LIV events held in the same week as DP World Tour tournaments.
To play in major tournaments, they would have to give up LIV events.
LIV was launched with funding from the PIF as a rival to the PGA Tour. This year, however, the PIF announced it would end its support. It has already poured billions of dollars into player contracts and prize money, but it has decided to provide no further backing.
The decision came as Saudi Arabia has also been reported to have sharply scaled back Crown Prince Mohammed bin Salman's Neom project amid financial strain.
LIV is now facing lawsuits from outside contractors who say they have not been paid. Sources said money is also leaking out through tens of millions of dollars in fees paid to outside advisers and newly appointed independent directors.
Meanwhile, Trump does not hold a stake in LIV or direct ownership, but he is still likely to be affected because the league has held tournaments at his golf courses. Revenue at his properties could take a hit.
[email protected] Song Kyung-jae Reporter