LIV Golf is accelerating negotiations with players to launch a revived team-format league after its bankruptcy filing. Bryson DeChambeau is exploring the future of the revamped league, while Jon Rahm is moving toward a consensual separation from the existing LIV. Lawyers for DeChambeau are seeking to organize a player alliance to negotiate terms directly with BC Partners and LIV, two major counterparties in the Chapter 11 case. The bulk of the roughly $400mn outstanding payments to golfers is owed to Rahm and DeChambeau.
An agreement between LIV, the Public Investment Fund of Saudi Arabia, and BC Partners includes a $4mn contribution to a $50mn bankruptcy loan to fund the launch of 'LIV 2.0'. The PIF has warned it will shift to a wind-down if the new plan fails by month-end. BC Partners is willing to lead a total $300mn investment, but PIF insists on immediate funding to demonstrate commitment.
The settlement requires BC to secure agreements with a requisite number of players by October 25. A committee of unsecured creditors includes golfer Michael La Sasso and trade vendors owed over $100mn. BC Partners executive Ted Goldthorpe stated that team franchises in LIV 2.0 could eventually be worth $100mn or more.
The preliminary terms call for players to own a majority of the equity in the new league as a settlement for their existing claims, with additional payouts for those who choose to play.
Source: Financial Times Companies · Summarized by HeadlinesBriefing