LIV Golf told a U.S. Bankruptcy Court judge Thursday that it was abandoning plans to launch LIV 2.0 and would close the tour. The decision followed BC Partners Credit's withdrawal of a $300 million financing offer Wednesday after negotiations with leading players broke down. LIV plans to submit a new Chapter 11 plan to the U.S. Bankruptcy Court of New Jersey on Nov. 9.
The league said it would continue considering proposals from outside parties during the shutdown process. However, Blanka Wolfe, a corporate bankruptcy analyst at Octus, said liquidation would follow unless an unexpected investor emerged. Saudi Arabia's Public Investment Fund invested $6 billion in LIV over five years.
The collapse leaves golfers including Bryson DeChambeau, Jon Rahm and Cameron Smith facing uncertainty over their playing options. A return to the PGA Tour would involve disciplinary decisions. Based on the penalty applied to former LIV player Patrick Reed, Rahm, Smith and others could face a wait until Aug. 24, 2027, one year after their last appearance in LIV's final tournament outside Indianapolis. Sources told ESPN that some players could face additional discipline, including DeChambeau, who remained involved in litigation against the PGA Tour after others withdrew.
PGA Tour CEO and commissioner Brian Rolapp offered Brooks Koepka, DeChambeau, Rahm and Smith a route back in January, but only Koepka accepted. Eligibility was limited to golfers who had been away for at least two years and had won a major or the Players Championship since 2022. Koepka donated $5 million to charity at the tour's request and surrendered equity and other bonuses. Rolapp has repeatedly said the offer would not be renewed.
The PGA Tour says discussions about returning cannot begin until players establish that they are free of their LIV contracts. Meanwhile, the DP World Tour offers opportunities for golfers with playing status. Rahm, Sergio Garcia and Tyrrell Hatton paid their fines, received releases for 2026 and publicly committed to playing that tour in 2027. Eligible players can compete for 10 PGA Tour cards available next year, although any accompanying PGA Tour penalties remain unclear.
Liquidation would turn LIV's remaining assets into proceeds for creditors. The PIF would have first priority because of a loan of nearly $500 million it made to LIV in June. Players and other unsecured creditors, including courses and service providers, would rank ahead of shareholders but behind other creditors, according to Octus corporate bankruptcy attorney Kevin Eckhardt. LIV's $5 billion in net operating losses could offset future taxable profits, but would have no value if the business liquidates.
Players owed hundreds of millions of dollars under their contracts are unlikely to recover that money through liquidation, though a separate agreement with the PIF remains possible. At Thursday's hearing, an attorney for an unsecured creditors committee that includes players said it was seeking a consensual resolution with the fund. Wolfe said that could involve pursuing a settlement in return for releasing legal claims.
Potential claims against the PIF remain an unresolved issue as the liquidation plan takes shape. Wolfe said those claims could influence whether the fund agrees to make payments to secure releases from liability. The next court hearing is scheduled for Nov. 24.
