LIV Golf Faces Potential Bankruptcy Filing
LIV Golf, the Saudi-backed golf league, is preparing to file for bankruptcy protection as early as next week, according to a Financial Times report cited by RTE and Middle East Eye on Monday. The league is reportedly racing to secure funding to move forward with a "slimmed-down" version for 2027, but is struggling to garner commitments from enough players to proceed with the so-called "LIV 2.0" plan, making it even harder to attract investment.
Players who were promised millions in guaranteed payouts have been sent settlement offers valued at "a few cents on the dollar," per the Financial Times report. The news comes after Saudi Arabia's Public Investment Fund (PIF) withdrew its financial support earlier this year, a move that has triggered a cascade of financial difficulties for the circuit.
Settlement Offers and Funding Negotiations
LIV Golf has reportedly been in negotiations with private capital firm BC Partners to help keep the league afloat. According to the Financial Times, BC Partners is waiting to see how LIV and PIF resolve player payments and the bankruptcy structure before committing further.
The league has already canceled two events during the 2026 season. Last week, LIV Golf informed its workforce that it was scaling back operations and terminating employees. Multiple vendors have also filed lawsuits seeking payments owed for services, according to the report.
Saudi Arabia's Shifting Investment Strategy
Saudi Arabia signaled in the spring that it would withdraw its multibillion-dollar investment in LIV Golf. PIF's bet on the league was one of a series of investments aimed at bolstering the kingdom's involvement in sports and entertainment as part of its push to diversify the economy away from energy. However, the tour has made losses in excess of $1.1 billion outside the US, and likely several billions in the US, since it was established, according to Middle East Eye.
LIV Golf's chairman Yasir al-Rumayyan, who is also governor of PIF, was expected to resign, according to Middle East Eye. The report noted that even before the US-Israeli war on Iran, high-flying Saudi projects were being cancelled or scaled down. Saudi Arabia's finance minister, Mohammed al-Jadaan, said in December that the government had "no ego" preventing it from reassessing projects. Earlier this year, construction of the Mukaab, a giant cube-shaped structure in Riyadh, was suspended, and plans for a desert ski resort and a large dam for an artificial lake were shelved.
Broader Economic Pressures
The Financial Times report, as carried by Middle East Eye, also cited Bloomberg reporting from Monday that Saudi Arabia is in early talks to raise at least $8 billion in fresh loans as the war on Iran takes its toll and the kingdom looks to continue investing in non-oil activity.
Middle East Eye reported that Saudi Arabia and other Gulf states have been hit by the war on Iran despite rising energy prices, and that the Gulf states have been trying to diversify their economies away from relying solely on oil and gas. The kingdom's decision to pull back from LIV Golf can be seen in this broader context of reassessing projects and managing economic pressures.
Outlook for the League
As LIV Golf approaches a potential bankruptcy filing, the fate of its players and events remains uncertain. The league's proposed "2.0" spin-off, which would reportedly see golfing stars opt for equity stakes and other forms of financial compensation, is part of a pre-packaged bankruptcy deal being pursued. However, with funding commitments still elusive and player settlements being offered at a fraction of their value, the path forward for the league is fraught with challenges.