Saudi Arabia-backed LIV Golf has filed for Chapter 11 bankruptcy protection, listing liabilities between $500mn and $1bn. The filing, made in a US bankruptcy court in New Jersey, reveals that nine professional golfers are among the top-10 unsecured creditors, with claims ranging from $2mn to $7.4mn. These figures only cover LIV's 2026 third-quarter obligations, not the full value of multi-year contracts that could reach tens of millions for some players.

The bankruptcy is part of a planned restructuring that will see buyout firm BC Partners take control and launch a "LIV 2.0" version. Under the proposed transaction, the reorganized company would be majority-owned by the players themselves, aligning their interests with the league's long-term success. LIV stated it expects to emerge from the court-supervised process in early 2027.

However, BC Partners and LIV have not disclosed the new league's format or which golfers will remain with the venture. The deal is contingent on LIV meeting various operating and financial milestones during the bankruptcy case, according to court documents. The investment from BC Partners is reported to be as much as $300mn.

The Saudi Public Investment Fund, which has invested over $5bn in LIV since its launch in 2022, will provide a $50mn bankruptcy loan to keep the league operational during proceedings. David Orlofsky, an executive at turnaround firm Alix Partners, will serve as LIV's chief restructuring officer. A first-day hearing is expected later this week or early next, where LIV's lawyers will outline their plan. LIV also seeks to have courts in England and Wales recognize the US proceedings to protect its international assets.