Breakaway Golf Circuit LIV to Dissolve Following Collapse of Investor Support

The breakaway men's professional golf league LIV will wind down its operations rather than launch a planned restructuring, following the collapse of financial backing. Spearheaded by Australian Greg Norman and launched in June 2022 with nine-figure signing bonuses, the circuit operated for five years before running into severe financial difficulties.

The league's future became uncertain after Saudi Arabia's Public Investment Fund withdrew its financial backing in April, following expenditures exceeding $US5 billion. LIV subsequently filed for Chapter 11 bankruptcy protection on September 8. Organisers had initially sought to secure a future through a restructured format known as LIV 2.0, bolstered by a potential $US300 million investment pledge from BC Partners Credit.

However, lawyer Matthew Williams told a New Jersey bankruptcy court hearing that the debtors are no longer proceeding with the LIV 2.0 plan. Instead, the organisation is shifting to a value-maximising wind-down of the business. BC Partners withdrew its support on Wednesday, stating that mutually acceptable terms could not be reached among stakeholders and that they were not satisfied with the mix of participating players.

Efforts to assemble a viable roster for the proposed new iteration fell short within the required timeline. While those working on LIV 2.0 had indicated commitments from co-investors and approximately 30 players, high-profile figures including Jon Rahm, Sergio Garcia, Tyrrell Hatton, and Louis Oosthuizen ultimately did not participate or walked away from the project.

Rahm agreed to forfeit claims estimated at $US100 million to secure his release from his contract and has returned to the European Tour. The PGA Tour currently maintains a one-year ban for players dating back to their most recent appearance on the LIV circuit. Legal representatives for LIV noted that the strategic initiative committee would remain open to alternatives if circumstances change, but concluded that liquidation represents the optimal path to preserve stakeholder value under current conditions.