LIV Golf Relaunch Reportedly Falls Apart as Investor Exits
BC Partners has reportedly pulled out of LIV Golf's post-bankruptcy relaunch after struggling to secure star players. The tour faces a bankruptcy hearing on Thursday.
The plan to rebuild LIV Golf after bankruptcy has reportedly fallen apart. The new lead investor, BC Partners, has withdrawn, according to reports on Wednesday, and what remains of the Saudi-backed tour's assets is expected to be liquidated.
Why the investor walked
The Financial Times and the Athletic, citing anonymous sources, said the private capital firm left after it had trouble securing full commitment from several star players. LIV Golf gave no immediate comment.
BC Partners Credit had offered an opening commitment worth a potential $300m. LIV filed for bankruptcy protection in September, and officials had promised a relaunch as "LIV 2.0" next season. Under the plan the season would be shorter, prize money smaller, and players would hold shares in the league.
Jon Rahm and Sergio García have publicly said they will not join the new version. Several others were believed to be undecided. Bryson DeChambeau, arguably the tour's biggest name, kept backing it but had not publicly committed to return.
The DP World Tour hardens its stance
The DP World Tour ended its rule that let golfers play events on both circuits, which made the relaunch harder. Players such as Rahm now have to choose.
Chief executive Guy Kinnings told the Scotsman he has a duty to protect the tour against an entity reported to have spent over $7bn, one of whose aims was to "destroy the DP World Tour".
Rory McIlroy, an outspoken LIV critic, backed Kinnings on Wednesday. "They took players; they took sponsors; they turned professional golf into an arms race," he said. He called for a reset in men's golf and said players had gained a lot of leverage over the tours, which he does not think is good for the game's health.
Money owed and the Thursday hearing
Saudi Arabia's Public Investment Fund is estimated to have put about $5bn behind the tour since 2022, before it stopped funding earlier this year.
Bankruptcy filings show LIV owes between $500m and $1bn to at least 1,000 creditors, including star players. Rahm, DeChambeau and Dustin Johnson hold the largest unsecured claims, each above $5m.
The tour is due at a bankruptcy court hearing in Trenton, New Jersey, on Thursday to discuss contracts, leases and assets. Whether its final fate comes up is unclear.
Our view
The reports rest on anonymous sources, and LIV has not confirmed anything. Thursday's hearing is the first public test: if assets, contracts and leases are on the agenda, it will show how far a wind-down has progressed.
For players, the money still owed matters as much as the golf. Several players are among the biggest creditors, which gives them a direct financial stake in how the bankruptcy ends.
Source: The Guardian