LIV Golf entered chapter 11 in New Jersey on September 8, 2026, seeking to replace its Saudi-backed financing model with a proposed $300 million recapitalization. Its restructuring agreement with BC Partners outlines new financing and majority common ownership for players, subject to further agreements and a chapter 11 plan.
The immediate funding request is separate. LIV seeks up to $49.6 million in new bankruptcy financing from Saudi Arabia’s Public Investment Fund, or PIF, to fund operations and the cases while it pursues the relaunch. The financing motion preserves an orderly wind-down through a liquidating trust if the proposed transaction cannot be finalized within the funding timetable.
U.S. Bankruptcy Court for the District of New Jersey
Case Number
26-20189
Petition Date
September 8, 2026
Case Snapshot
This account covers first-day filings submitted through September 9, 2026. The transaction and financing terms below are proposals, subject to their stated conditions.
PIF’s equity support gave way to secured lending
LIV began competition in June 2022, using large signing bonuses to recruit leading PGA Tour players, the Associated Press reported. CEO Scott O’Neil’s proposed changes include a reduced schedule, an expansion from 57 to 75 players per field and a cut.
Chief restructuring officer David Orlofsky reports that PIF-controlled entities invested approximately $5 billion in equity capital in LIV Golf. The league continued to operate at a loss and remained years from projected stand-alone profitability under its previous structure. On April 30, 2026, PIF announced that it would stop providing equity capital and fund the remainder of the season through secured lending, according to the first-day declaration, paragraphs 7–8 and 43.
The declaration reports an approximately $495 million balance, including unpaid interest, under the prepetition PIF facility at filing. That existing secured debt is distinct from PIF’s historical equity investment and the new financing requested for the bankruptcy cases.
BC Partners affiliated funds and co-investors would provide up to $150 million of the total financing. Other investors acceptable to BC Partners and LIV would be offered the opportunity to co-invest. The term sheet therefore does not establish a $300 million commitment from BC Partners alone.
The total is also subject to adjustments. Qualifying supplemental bankruptcy loans would roll into the term loan and reduce the fresh capital funded under that component at emergence. The $300 million package should not be read as $300 million of additional cash arriving on the plan’s effective date.
The term sheet proposes common equity allocations of 52.5% to players, 45% to new investors and 2.5% to management, subject to adjustment. Player treatment depends on releases, settlement agreements and new playing arrangements. The proposed seven-member board would include three BC Partners designees, three designees of the players and management and one independent member. The ownership percentages alone do not describe unrestricted player control.
The $49.6 million loan would fund the cases
PIF’s requested bankruptcy loan would provide new money alongside a dollar-for-dollar conversion of existing PIF debt into bankruptcy loans. That conversion, commonly called a roll-up, would not provide additional operating cash. The financing motion, paragraphs 1–5 describes the requested structure:
Term
Requested structure
New-money principal
Up to $49.6 million
Interim availability
Up to $14 million in a single draw following interim approval
Subsequent availability
Remaining new-money capacity after final approval and satisfaction or waiver of applicable conditions
Existing-debt roll-up
Dollar-for-dollar matching amounts tied to the interim and delayed-draw loans
Interest
12% annually, paid in kind
Scheduled maturity
120 calendar days after the petition date, subject to earlier maturity provisions
Requested Bankruptcy Financing Terms
On September 9, the debtors filed a revised proposed interim order. That filing is a notice attaching a proposal and redline; it does not itself establish entry of an order approving the financing or show that funds were drawn.
New player contracts remain central to the relaunch
LIV’s proposed ownership transition is accompanied by a request to reject existing player contracts. The debtors argue that those contracts do not match the contemplated compensation structure and could create substantial administrative costs if maintained after filing. They hope to negotiate new long-term contracts with players as part of LIV 2.0.
The rejection motion describes participation agreements generally extending through the 2028 season, with fixed and contingent compensation and provisions governing players’ name, image and likeness rights. It seeks rejection effective as of the petition date while preserving previously granted rights that expressly survive termination. This is requested relief, not proof that every player contract has been terminated.
Speaking before the Irish Open, Jon Rahm told BBC Sport that he remained willing to fulfill his existing LIV contract, while acknowledging uncertainty about what came next. Separately, ESPN reported that Lee Westwood intended to assess LIV 2.0 before deciding whether to stay.
Section 4 of the restructuring agreement requires the debtors to file financing and assumption motions within three days after the petition date. Within ten days, the court must enter the assumption and interim financing orders, and the debtors must actually assume the agreement. PIF must become a party by assumption; the requisite players must join within 35 days on acceptable terms. The plan sponsor may extend or waive these milestones in writing. These are contractual requirements, not findings that the agreements or approvals have been obtained.
The immediate question is whether LIV can secure the player participation and financing agreements needed for its relaunch within that timetable. Orlofsky’s declaration targets emergence in January 2027, while the financing motion preserves a wind-down alternative if the going-concern transaction cannot be finalized.
Sources
restructuring agreement with BC Partners /documents/7a9fa3d0-0687-4854-b052-33a248932b37/
up to $49.6 million in new bankruptcy financing /documents/5d15eee6-f47c-476b-a16a-057e2bff8810/
revised proposed interim order /documents/d5f4e134-281e-4df5-87b9-5c4aae545807/
request to reject existing player contracts /documents/02f8d093-c7ae-4ff4-8809-f5346e8dc6e2/
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.