Breakaway men’s golf league LIV Golf has filed for bankruptcy.
The move comes months after the Saudi Arabian Public Investment Fund (PIF) confirmed it would pull its funding from 2027 onward.
The league has filed Chapter 11 bankruptcy in the U.S, which allows it to keep operating while it restructures its finances under court supervision.
Here’s what to know.
What is LIV?
LIV Golf is a men’s professional golf circuit, launched in 2022 as a rival to the main PGA Tour.
The breakaway tour was bankrolled by Saudi Arabia’s PIF, one of the world’s largest sovereign wealth funds.
Since LIV’s launch in 2022, the PIF has spent more than $US5 billion ($AU6.9 billion) on the venture.
LIV was able to draw star players away from the PGA with signing bonuses reportedly worth hundreds of millions of dollars, creating a division in men’s professional golf.
In LIV, players compete in 13 teams of four at events across multiple countries throughout the year.
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Until 2025, LIV events ran over 54 holes (LIV is 54 in Roman numerals) rather than the standard 72.
LIV players can only play PGA events under certain circumstances.
What’s next?
To keep the league running, the PIF has agreed to lend LIV $US49.6 million ($AU68.7 million) in interim financing, subject to court approval.
Fourteen of the 30 largest creditors (people or organisations which loaned LIV money) are players, including Australian Cameron Smith.
The 2022 British Open champion is owed $US4.8 million ($AU6.6 million).
LIV said it plans to emerge from Chapter 11 in early 2027.
CEO Scott O’Neil has described the future of the league as a scaled-back operation with a reduced schedule.
British private equity firm BC Partners is expected to fund the reorganised league, alongside other minority investors.
Players, who remain in “advanced discussions” with LIV, would be handed majority ownership as part of the deal to settle what they are owed.
