LIV Golf files for Chapter 11 bankruptcy | College News
LIV Golf and its associated entities have filed for Chapter 11 bankruptcy safety 4 years after the league’s debut as a heavy-spending, player-friendly different to the PGA Tour.
Rather than signal the end of LIV, though, the transfer is designed to help the league transfer into the future without Saudi funding.
“We are excited about what lies ahead and yet, there is still much to accomplish in the months ahead,” CEO Scott O’Neil said in a assertion launched by the league on Tuesday. “We believe deeply in LIV Golf’s future, the opportunity in front of us, and the people who will help us realize it. We will not rest until we deliver on LIV Golf’s full potential.”
After launching in June 2022, LIV once paid nine-figure signing bonuses to lure away top gamers from the PGA Tour. Spending had reached an estimated $6 billion by the time the Public Investment Fund of Saudi Arabia determined to end its financial assist in April.
On Tuesday, LIV said it has entered a restructuring assist settlement with BC Partners Advisors and voluntarily entered a court-supervised restructuring course of under Chapter 11 in the United States Bankruptcy Court for the District of New Jersey.
Last month, O’Neil announced a long-term plan that would have the golfers turn into the bulk equity holders in the league. In a letter to followers on Tuesday, he said that this week’s strikes are steps toward the league’s long-term targets.
“Now it is time to enter the next phase of LIV Golf,” O’Neil said. “Today, we took an important step forward to get there. LIV Golf has entered a court-supervised restructuring process that provides us with the time and framework to address previous financial obligations and complete a transaction that will make the League’s next phase a reality. Put simply, this process is designed to build a stronger and more sustainable future for LIV Golf.”
O’Neal said the new league model will develop the sphere for occasions from 57 to 75 gamers, introduce a 54-hole cut and create Monday qualifiers. It will “be built around a sustainable business model and deeper alignment between players and the League, with team golf at its core,” he wrote.
“Players will have the opportunity to share directly in the value they help create, while teams will be positioned to grow into enduring global sports businesses. And fans will remain at the center of everything we do.”
In its bankruptcy submitting, LIV listed estimated assests of between $100 million and $500 million and liabilities of between $500 million and $1 billion. Players Jon Rahm, Bryson DeChambeau, Dustin Johnson and Cameron Smith have been listed as the 4 main collectors.
The league ended its season in August. Four distributors already have filed lawsuits because they haven’t been paid.
The Associated Press contributed to this report.
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