LIV Golf faces collapse as new funding partner pulls out; liquidation process may begin

The future of the Saudi-backed LIV Golf league has become even more uncertain. London-based private equity firm BC Partners has reportedly backed out of its plan to fund a restructuring called 'LIV 2.0'.

According to the report, a lack of player interest and commitment is behind BC Partners' decision. The Athletic reported that the firm no longer believes LIV could form a viable league, and that LIV is now pivoting to a wind-down.

Earlier, in April, Saudi Arabia's Public Investment Fund (PIF) halted funding for LIV, saying it would redirect money toward domestic projects and manage financial pressures from the regional war with Iran. Following that decision, PIF governor Yasir Al-Rumayyan resigned from LIV's board.

LIV filed for Chapter 11 bankruptcy in New Jersey in September. Between 2021 and 2026 the league spent an estimated $5 billion to $8 billion, according to the report.

Bankruptcy filings show the league owes millions of dollars in unpaid compensation to top players including Jon Rahm, Bryson DeChambeau, Dustin Johnson and Cam Smith.

The league's future depended on the proposed 'LIV 2.0' restructuring plan. But Rahm said the terms of '2.0' are 'unacceptable' and that he will not participate in it. Tyrrell Hatton, Louis Oosthuizen, Sergio Garcia and numerous others have since followed suit.

According to The Athletic, a hearing scheduled for Thursday in New Jersey bankruptcy court is expected to start the liquidation process.

LIV has laid off most of its operational staff, event contractors are waiting for payment, and the league faces a lawsuit from the Premier Golf League alleging breach of confidence and conspiracy.

Shortly after the PIF pulled its funding, LIV CEO Scott O'Neil said the LIV calendar would not be altered, but that did not occur: the originally scheduled championship weekend was cancelled and had to be played a week earlier.

Numerous Europe-based golfers have been leaving LIV for the DP World Tour. Europeans have to be members of the DP World Tour in order to play in the Ryder Cup.

Brooks Koepka was the first big name to leave last year and rejoin the PGA Tour, and Patrick Reed soon followed. The report said this mass exodus, which now includes two funders, is the biggest yet.