LIV Golf is considering filing for bankruptcy in an effort to restructure its debt burden and ease liquidity flows, a report Thursday indicated.
The revelation, reported by Flushing It Golf, is casting another shadow over future of the rebel golf league.
It comes just days after LIV Golf canceled one of its most highly financed and high-profile events, the $40 million Team Championship, as Breitbart News reported.
The Team Championship, which was scheduled to take place from August 27-30, becomes the second major LIV event to be canceled this year. The troubled global contest also nixed an event set for June in New Orleans.
LIV Golf branding at the JCB Golf and Country Club. It is now looking at urgent financial measures to guarantee its future as clouds continue to gather over the future of the once popular league. (Mike Egerton/PA Images via Getty Images)
Now it appears the whole of LIV Golf may be under threat.
LIV Golf players who had outstanding contract payments — multi-year or rolling — have been approached with equity offers in the new version of the league, whatever that may look like, according to the Flushing It Golf’s report. The outlet noted:
These offers vary significantly depending on their stature and the value of their existing contract.
Sources indicate the total value of equity offered would potentially make the players the majority owners of LIV Golf 2.0 if funding is secured.
One of the biggest factors will be Jon Rahm, according to the report, which indicated he is still owed “9 figures for his deal signed ahead of the 2024 season that still has multiple years left.”
“This would likely make Jon the biggest creditor should LIV Golf file for bankruptcy. Jon refused to guarantee he will play on LIV Golf in 2027 when asked directly in a press conference at LIV Golf UK and he has an enormous role in deciding the future of the league both on and off the course,” Flushing It Golf wrote.
LIV Golf has recently had to issue several cash prize reductions.
“The tourney featured a $50 million prize last year, but that is down to $40 million, according to Front Office Sports, with the winners’ cut dipping from $14 million to $11.2 million,” the New York Post reports.
Ominous news for the future of LIV Golf came in April, after the Saudi Public Investment Fund announced it would no longer support the league after the conclusion of this season.
CEO Scott O’Neil is seeking a cash infusion of $350 million to keep the tour going.
Saudi Arabia’s Public Investment Fund (PIF) is responsible for the lion’s share of the league’s funding. That cash flow is currently under review as the PIF reassesses its investments.