LIV Golf filed for Chapter 11 bankruptcy in Trenton, New Jersey federal court on Tuesday, marking a grim milestone for the Saudi-backed rival to the PGA Tour. Court filings reveal the circuit spent $5.5bn in debt and equity since 2021 but ended with just $15mn in cash, having overspent on player contracts while failing to build audience. The Saudi Public Investment Fund provided a $50mn bankruptcy loan to fund restructuring, but CEO Scott O'Neil must finalize a "LIV 2.0" plan backed by $300mn from BC Partners within a month or face liquidation.

Unsecured creditors include star players Jon Rahm, Bryson De Chambeau and Cameron Smith, who are owed millions on contracts LIV seeks to terminate. A settlement offer proposes equity in LIV 2.0 regardless of whether players join the new competition. Lawyers for LIV, represented by Gibson Dunn's Matthew Williams, told Judge Michael Kaplan the player response has been "enthusiastic" but acknowledged "we may not get there." Smith and De Chambeau have already retained personal counsel, and Kaplan quipped during Wednesday's hearing that "you could sell tickets to the formation of this committee." The league's future remains uncertain as creditors and players weigh the restructuring proposal.