It is reported that after BC Partners Credit abandoned its financing plan to restart this split-off golf league, LIV Golf may be on the path to liquidation.
According to the Associated Press, this investment company had originally promised to provide up to $300 million in funding for the revised version of LIV – namely “LIV 2.0” – but since LIV Golf failed to secure enough commitments from players, BC Partners withdrew that plan.
LIV is scheduled to appear in a U.S. bankruptcy court on Thursday, and it is currently anticipated that the focus of the hearing will shift to the liquidation of its assets. The ultimate fate of the league remains uncertain.
LIV Golf and BC Partners did not immediately respond to CNBC's request for a comment.
LIV filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in September. Prior to this, the Saudi Public Investment Fund stated that it would cease providing funding for the league after the 2026 season.
According to its bankruptcy application documents in Chapter 11, since the establishment of LIV in 2022, the public investment fund has invested over 5 billion US dollars.
The restart plan proposed by BC Partners would have originally made the players the majority shareholders of the reorganized league, and a reduced schedule would have been adopted.
However, in the process of securing commitments for this new plan, LIV has lost several well-known players, including Joan Ram and Sergio Garcia.
Lam said on Tuesday that the uncertainty regarding the league's future and the proposed changes to the competition format influenced his decision to leave.
Before the Abu Dhabi Championship, he told reporters, "There were too many unknowns at that time, and there are still quite a few now." Ram also added that the reformed format of the event seems to be moving away from the team competition system that initially attracted him.
Garcia was granted permission to terminate his LIV contract in October. He has outlined plans to return to DP World Tour and is also exploring the possibility of returning to PGA Tour.
According to Golf Digest, only four players have publicly committed to joining LIV 2.0: Richard Brand, Cameron Tringale, Brendan Steele, and Ben Campbell.
LIV was established in 2022 as a challenger to PGA Tour, and recruited well-known players including Phil Mickelson, Dustin Johnson, and Bryson DeChambeau with high-value contracts.
The emergence of LIV led to a split within the men's professional golf community, with PGA Tour having their membership in LIV competitions suspended. Subsequently, the dispute escalated to the courts, with players challenging the sanctions, and the opposing parties each made legal claims against each other.
PGA Tour denied these accusations, while LIV dismissed the counterclaim.
In June 2023, PGA Tour, DP World Tour reached a framework agreement with the Saudi Public Investment Fund to resolve their mutual lawsuits and proposed to merge their business operations, but this transaction was ultimately not completed.
