LIV Golf faces liquidation as BC Partners pulls out of restructuring deal

LIV Golf, which had been preparing for a fresh start, now faces the prospect of liquidation.

Reuters reported Thursday (Korean Standard Time), citing the Financial Times, that new investor BC Partners is pulling back from its plan to relaunch LIV Golf after failing to secure commitments from enough players. The Financial Times, citing people familiar with the matter, said the decision came as a deadline approached to demonstrate that sufficient players had been signed up to run tournaments in 2027.

Bloomberg also cited sources as saying the deal to rebuild the league had collapsed and that BC Partners, which had agreed to lead a $300 million investment, plans to wind down the restructuring effort. The reports suggest liquidation — selling off remaining assets rather than keeping the league alive through new financing — has become the more likely outcome.

LIV Golf announced Sept. 8 that it had signed a restructuring support agreement with BC Partners Credit, the credit investment arm of BC Partners. The plan called for the league to reorganize its finances through Chapter 11 bankruptcy proceedings and continue operations. That announcement concerned the investment agreement and restructuring process; it was not a liquidation notice.

The subsequent "LIV 2.0" concept envisioned offering players equity stakes and running a team-based tournament format. According to the Associated Press, the league sought to hold at least 10 events but struggled to secure the participation of enough marquee players to make the circuit commercially viable.

The financial crisis began when Saudi Arabia's Public Investment Fund stopped providing support. According to restructuring documents filed with the court, PIF said in April that "continued funding of LIV Golf is not consistent with its investment strategy" and would make no further contributions. LIV Golf then sought new investors and entered negotiations with BC Partners, which had indicated a willingness to provide financing subject to conditions including the execution of a restructuring plan.

LIV Golf launched its first season in 2022, signing top players including Phil Mickelson, Bryson DeChambeau and Dustin Johnson with large upfront contracts to emerge as a rival to the PGA Tour. But with its original backer's funding cut off and its new investment plan now in doubt, the league's survival has become uncertain.

According to Reuters, LIV Golf is scheduled to appear before a federal bankruptcy court in Trenton, New Jersey. Contracts, leases and assets are among the matters to be discussed, though it remains unclear whether the league's ultimate fate will also be addressed.

As of the time of the reports, neither LIV Golf nor BC Partners had responded to Reuters' requests for comment. The situation should therefore be characterized not as a confirmed liquidation but as one in which the withdrawal of investment has thrown the restructuring plan into doubt and raised the possibility of winding down.