LIV Golf files for Chapter 11 bankruptcy

LIV Golf has filed for bankruptcy protection as the upstart golf league faces a Saudi funding cliff and searches for new investment.

The golf venture — initially backed by Saudi Arabia’s Public Investment Fund, or PIF — said on Tuesday it has entered into a restructuring support agreement with BC Partner Advisors LP, the credit arm of private equity firm BC Partners. As part of the agreement LIV agreed to seek Chapter 11 protection in the U.S. Bankruptcy Court for the District of New Jersey.

CNBC previously reported PIF was set to pull its funding from LIV at the end of the 2026 schedule. Earlier this year LIV launched an investor roadshow in an effort to raise up to $350 million from stakeholders to fund its operations.

As part of the proposed bankruptcy deal, for which LIV will need court approval, the venture is expected to be majority owned by its players. LIV remains in advanced talks with the players, it said in a Tuesday news release.

PIF has agreed to provide $49.6 million in bankruptcy financing that will allow LIV to stay afloat during proceedings. Following the exit from bankruptcy protection, BC Partners Credit and other minority stakeholders are expected to provide financing.

“This process gives us the structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf – one built around the fans, an innovative, player-first ownership model, and a part of the global golf ecosystem,” CEO Scott O’Neil said in Tuesday’s release. “We are excited about what lies ahead and yet, there is still much to accomplish in the months ahead.”

In June, amid reports that PIF funding could end even sooner than previously understood, O’Neil told CNBC that the organization had to trust that the sovereign wealth fund would continue to back the venture through the conclusion of the season.

LIV had been positioned as a rival to the PGA Tour and beckoned high profile athletes, in part thanks to hefty paychecks. By 2023 the league had agreed to merge with the PGA Tour, although a deal has yet to come to fruition.