LIV Golf to dissolve after spending over $5 billion

LIV Golf spent more than $5 billion before losing its primary financial backing from Saudi Arabia. The tour announced Thursday in a New Jersey bankruptcy court hearing that it will cease operations rather than launch a new iteration called LIV 2.0. Attorney Matthew Williams of Gibson Dunn stated that the debtors are shifting to a value-maximizing wind-down because they lacked sufficient support for the new plan. The company filed for Chapter 11 bankruptcy on Sept. 8, 2026.

BC Partners Credit had pledged a $300 million investment to help the tour pivot to a more sustainable model. However, key players including Jon Rahm, Sergio Garcia, Tyrrell Hatton, and Louis Oosthuizen declined to join the new structure. BC Partners expressed disappointment in a statement, noting that mutually acceptable terms could not be reached among stakeholders. The tour had hoped to offer player equity and prize money exceeding half the $20 million individual purses that characterized its 2022 launch.

The loss of Saudi funding marked a turning point for the organization. The Public Investment Fund of Saudi Arabia changed its investment strategy in April, two weeks after the Masters, and decided to stop funding LIV after the 2026 season. This decision followed the Iran war, which began two months prior. Before the bankruptcy filing, LIV had also paid $15.6 million to retain seven executives, including $6.375 million to CEO Scott O’Neil. These retention payments are now under scrutiny for potential voiding since the company is liquidating.

External factors further complicated the tour’s path. The Asian Tour renewed its alliance with the PGA Tour and the DP World Tour in July. Guy Kinnings, CEO of the DP World Tour, stated last month that players signing up for LIV 2.0 would not need to apply for European tour membership. This move placed European players at risk of missing the Ryder Cup. Kinnings told The Scotsman newspaper that the tour must protect itself from an entity that spent over $7 billion with the aim of destroying the DP World Tour.

Individual players are already making moves away from the tour. Jon Rahm agreed to forfeit claims valued at approximately $100 million to exit his contract and return to the European tour. He hopes for a path back to the PGA Tour, which currently imposes a one-year ban based on players’ last LIV appearance. Brooks Koepka exited his deal earlier in the year, and Patrick Reed chose not to extend his contract, positioning him for a return to the PGA Tour next year based on his European performance.

LIV Golf’s final event took place in August in Indianapolis, where Michael La Sasso won. La Sasso recently failed to advance past the second stage of European tour qualifying school. The tour was originally led by Greg Norman, who promoted the brand as “Golf, but louder” with shotgun starts and large prize funds. It secured a broadcast deal with the CW Network in 2023 and Fox Sports in 2025, after covering its own production costs in its first year without a television contract.

The tour will now enter a liquidation phase. The next step involves processing the wind-down of its business assets. Players and investors will review their positions as the legal proceedings continue in New Jersey. The final outcome of the retention payments and contract claims will be determined in the coming months.