LIV Golf preparing for bankruptcy after $5bn Saudi | Golf News

LIV Golf has began preparing for a potential bankruptcy submitting in the United States as the breakaway circuit faces the prospect of full shutdown when its current season concludes in late August.

With no different funding source in sight, the league is now preparing for the very real prospect of shutting down.

According to Bloomberg News’ reporting, LIV management and advisers are concurrently working on two approaches: an lively hunt for new buyers and a backup contingency plan that consists of Chapter 11 bankruptcy proceedings ought to that fundraising effort show unsuccessful.

Sources characterised bankruptcy as a “last resort” but confirmed that preparations are already in movement. The league is reportedly weighing a transfer of its headquarters to the United States, particularly to capitalize on the nation’s bankruptcy legal guidelines, having beforehand operated out of places of work in London and Riyadh.

LIV enticed Rahm, Bryson DeChambeau, Phil Mickelson, Dustin Johnson, Brooks Koepka and Patrick Reed away from the PGA Tour with profitable contracts that assured fee regardless of their efficiency on the course.

Should the league fold, those contracts would develop into void, and a return to the PGA Tour, while probably doable for major winners through restricted exemptions, is neither assured nor simple for all of those gamers.

LIV’s chief govt Scott O’Neil struck a more upbeat tone when he addressed reporters at LIV Virginia earlier this month — his first public look since the PIF’s withdrawal was announced. He outlined the kinds of buyers who had already reached out.

“It was a split between private equity, family office and then your traditional high net worth – the guys who invest in sports and sports teams. So that’s been really positive,” he said. However, he also conceded that the method was far from finalized. “It’s still early. We haven’t gotten to market yet. We haven’t finalized our business plan. We’re still picking and prodding. We have a good sense at this point – we know where we’re going, and we’re just going to tighten the screws.”

The league has beforehand highlighted a 100% year-on-year income increase during the current season, while also expressing confidence that the crew golf format would draw in personal investment. Reports earlier this week indicated that LIV was looking for up to $250 million in short-term funding, with an different association involving $150 million in new capital alongside up to $100 million from crew gross sales and a media rights deal.

None of that funding has publicly come to fruition. The league’s last event is the LIV Team Championships in Plymouth, Michigan on August 30.