LIV Golf is entering a major transition after spending the past several seasons reshaping professional men’s golf. The Saudi-backed circuit attracted some of the sport’s biggest names with large contracts, signing bonuses and substantial tournament purses after launching in 2022.
The league has now completed its 2026 season while preparing for a significantly different future. Saudi Arabia’s Public Investment Fund, which has provided billions of dollars to support LIV, is ending its funding commitment after the current season.
LIV is also seeking new financial backing and is considering a smaller model for 2027. The changes could affect the contracts of several prominent players, including Bryson DeChambeau and Jon Rahm, while the organization works to determine the structure of its next phase.
LIV Golf Faces Potential Bankruptcy As Player Payments Become Major Issue
The Financial Times reported on August 31 that LIV Golf could seek Chapter 11 bankruptcy protection as soon as the week of September 7. The report said the league has sent settlement offers to current players who are owed millions in guaranteed payments beyond 2026.
Those initial offers were worth only a few cents on the dollar, according to people familiar with the negotiations cited by the FT. The proposals are part of broader discussions over how LIV can manage its existing obligations while preparing a new version of the league.
A potential Chapter 11 filing could allow LIV to restructure its debts and contractual obligations while continuing operations. The FT reported that the filing could take place in the federal district court in New Jersey.
PIF is expected to provide less than $100 million in debtor-in-possession financing if the bankruptcy process begins. However, the sovereign wealth fund is not expected to provide additional funding beyond that loan, according to the FT.
“PIF wants a clean baton toss,” one person involved in the discussions told the FT.
Players could face different paths if a bankruptcy occurs.
According to the FT, some could settle with LIV and join the reworked league, while others could accept settlements but leave. A third group could reject the terms and pursue their contractual money as unsecured creditors.
The financial pressure has already led to changes within LIV.
Golf Digest’s Joel Beall reported that the majority of the league’s staff were informed that their employment under the existing operation would end in the first week of September.
A LIV spokesperson told Golf Digest: “The funding commitment announced by PIF earlier this year will reach its conclusion. As a result, we are scaling back operations as we transition to the next chapter of LIV Golf and work toward making LIV 2.0 a reality.”
The FT also reported that several tournament vendors have sued over unpaid fees. LIV has spent more than $5 billion since its launch, according to Reuters, with other estimates placing PIF’s total spending above $6 billion by the end of 2026.
Bankruptcy could be part of a restructuring rather than an outright shutdown.
LIV Golf Pushes Toward “LIV 2.0” As Saudi Funding Ends
LIV has been negotiating with BC Partners as it searches for outside financing. According to the FT, the private capital firm could invest up to $300 million in a transaction involving LIV’s assets.
The proposed “LIV 2.0” would be smaller than the current operation. The league is considering a 10-tournament global schedule, compared with the 13-event 2026 calendar after the cancellation of the Michigan Team Championship.
Prize money could also decrease sharply. Front Office Sports previously reported that regular-event purses could fall from about $30 million to approximately $10 million.
The new structure could give players majority equity while also providing greater freedom to compete on other tours. That would represent a significant change from LIV’s original model, which relied heavily on large guaranteed contracts and PIF funding.
DeChambeau’s contract expires after the 2026 season, while Rahm’s agreement extends beyond this year.
Their decisions could be important as LIV attempts to retain established stars under a more financially controlled model.
The proposed league also faces competitive challenges. The DP World Tour has said players could face fines or bans for competing in LIV events held during the same weeks as its tournaments.
LIV chief executive Scott O’Neil has argued that golfers should not face such restrictions. He has also continued to support the league’s next phase as LIV searches for a sustainable structure beyond PIF’s involvement.
BC Partners is examining LIV’s more than $5 billion in reported net operating losses across the United States and the United Kingdom as part of its investment considerations. Liberty Strategic Capital has also expressed preliminary interest.
For LIV players, the next few weeks could determine whether existing contracts are settled, restructured, or pursued through bankruptcy proceedings. The league’s financial transition will also decide whether the proposed LIV 2.0 can move forward in 2027.
LIV Golfers Offered Pennies on the Dollar As League Prepares Bankruptcy Filing