LIV Golf announced this Tuesday 8 September its voluntary entry into a judicial restructuring process under Chapter 11 of the United States bankruptcy laws. The company and its subsidiaries have initiated proceedings before the United States Bankruptcy Court for the District of New Jersey with the stated aim of preserving operations and enabling a new structure in which the players would be the majority owners.
It is the central step of a recapitalisation operation for which LIV has signed a restructuring support agreement with BC Partners Credit, the credit arm of BC Partners. The company’s intention, according to the statement, is to complete its exit from the proceedings and begin that new stage in early 2027.
There is, however, an important difference between what has already been announced and what still needs to be finalised. The restructuring support agreement is signed, but the deal is not closed. Its completion depends, among other conditions, on court approval and the parties involved. In addition, LIV acknowledges that it continues to hold “advanced discussions” with the players who are to become its majority owners.
The objective set out in the official note issued by LIV is to keep the company operating. Chapter 11 is a reorganisation procedure that, in general terms, allows a company to continue trading while it works on a plan under court supervision and, with the court’s authorisation, obtain new financing. Adopting this mechanism does not by itself amount to announcing a liquidation or a shutdown.
That is the framework chosen by LIV to try to transform its financial and ownership structure. The company presents the proceedings as a tool to provide the necessary time and execute the transaction, although its chief executive officer, Scott O’Neil, admits that important matters remain to be resolved.
“This process provides us with the structure and time necessary to carry out a historic transaction and begin the next chapter of LIV Golf”, O’Neil says.
The executive describes that next stage as a league built around fans, with an ownership model that places players at the forefront and that forms part of the global golf ecosystem. His message is one of confidence, but he does not consider the task complete: “We are excited about what lies ahead, although there is still much to do over the coming months”.
Players would hold the majority, but who and how remain to be determined
The main novelty of the proposed structure is that the majority ownership of the reorganised company would rest with the players. The purpose, according to LIV, is to align their interests with the long-term success of the league.
The statement does not identify the golfers with whom it is negotiating, nor does it detail how shares would be distributed or confirm what commitments have been made. It also does not explain how their current contracts would be treated.
Therefore, the announcement does not allow the continuity of any specific player to be taken as confirmed, nor to determine what financial terms would accompany their participation in the new company.
The proposal refers to the ownership of LIV Golf as a reorganised company. It is there that the league wants to place the players in a majority position, accompanied by new financial investors.
The PIF would finance the proceedings; BC Partners would fund the exit
The statement distinguishes two phases of financing and two different roles.
For the court process, the Saudi PIF has agreed to provide $49.6 million in financing, subject to court approval. It is the specific amount the company has made public for this phase of the restructuring.
Afterwards, when LIV emerges from Chapter 11, the expectation is that BC Partners Credit and other potential minority investors will provide the exit financing and support the plan to capitalise the reorganised company.
The amount of that second financing and the stake that would correspond to each investor have not been disclosed. The $49.6 million announced belong to the PIF’s commitment for the proceedings, not to an investment already disbursed by BC Partners for the new stage.
The distinction is relevant: one thing is to finance the judicial transition and another to provide resources to the company intended to be built afterwards.
Gene Davis, chair of the special committee of the board of directors, argues that the decision comes after reviewing the available alternatives together with O’Neil, the management team and their advisers.
“The board’s priority is to protect what they have built”, he says referring to players, employees and commercial partners. In his view, the measures announced represent “the most responsible way forward for the league and for all stakeholders”.
The company is also seeking the recognition of the US proceedings in England and Wales, with the aim of preserving the value of its assets and international operations.
The timeline set by LIV is the start of 2027, but this is a forecast for completing the reorganisation, not a confirmation of a sporting calendar. The statement also does not specify tournaments, prize pools or the composition of the future league, something we already previewed in the Bola Provisional de Ten Golf.
LIV has announced, in short, the judicial mechanism and the financial agreement with which it intends to support its next stage. The transaction still needs to be closed, and it remains to be determined which players will participate, under what conditions and with what resources the reorganised company will operate.
