LIV Golf was planning a restructuring through its 2.0 version in 2027. But its proposed comeback has suffered a major setback. Its prospective financial backer, BC Partners, has reportedly abandoned plans to rescue and relaunch the breakaway league, according to the Financial Times. The decision leaves the Saudi-backed circuit facing liquidation, potentially ending its efforts to build a sustainable business beyond its original financial backing from Saudi Arabia’s Public Investment Fund (PIF).

The withdrawal marks another significant blow for LIV Golf, which entered Chapter 11 bankruptcy proceedings in September. With the proposed alternative now falling apart, the league faces an uncertain future and may have to consider winding down its remaining operations.

BC Partners had been prepared to provide up to $300 million in loans and investments to support LIV 2.0.

The investment was intended to provide LIV Golf with a financial foundation for its next phase. The financing package included loans and equity investments intended to support LIV Golf’s emergence from bankruptcy and prepare the reorganized circuit for the 2027 season.

BC Partners had announced an initial committed investment in October, describing it as the first part of a larger financing package. The remaining funding was subject to conditions, including the successful restructuring of the business and securing sufficient player participation.

FT earlier reported that about 15 players committed to LIV 2.0. Bryson DeChambeau decided to stick with the rebel league. He said that he truly believes in the concept of team golf. However, many golfers and analysts have questioned his decision to stay on a sinking boat.

The challenge, though, is that the proposed rescue depended on LIV Golf becoming commercially viable. Replacing its previous financial backing with private investment required a business model that could attract players, generate revenue, and support the league beyond its initial restructuring.

One of the most distinctive elements of the proposed restructuring was its ownership arrangement. LIV Golf intended to give players a majority stake in the reorganized business.

Under the proposed ownership structure:

• Players: 52.5% equity in the reorganized league.
• BC Partners and other minority investors: 45% equity.
• Management: 2.5% equity.

Players were also expected to receive signing bonuses and certain name, image, and likeness (NIL) rights under the new agreements. But that plan to retain and attract talent seems to have failed miserably.

Reports indicated that BC Partners was seeking commitments from about 30 to 40 players, which LIV Golf could not achieve.

The uncertainty surrounding LIV Golf’s future became increasingly apparent as several established names began distancing themselves from the league.

Jon Rahm, Tyrrell Hatton, Sergio Garcia, Ian Poulter, and Tom McKibbin were among the prominent players whose participation in the proposed 2027 structure became uncertain or who had indicated they would not return.

Lucas Herbert offered a particularly useful explanation of why some players were reconsidering their LIV commitments.

Speaking about the plans for LIV 2.0, Herbert said, “Ten events is not enough to build a season around.”

He also questioned whether the additional playing opportunities discussed by the league would provide sufficiently competitive fields and suitable venues.

Access to major championships was another important consideration.

Player participation was not the only obstacle LIV Golf faced. Disagreements over existing contracts and outstanding payments also complicated the proposed reorganization.

More than 10 golfers, including Dustin Johnson, Bubba Watson, and Thomas Detry, reportedly sought more than $100 million in payments tied to their original LIV contracts or severance arrangements.

The group was seeking a financial settlement from PIF.

David Cornwell, Johnson’s lawyer, criticized the Saudi fund’s treatment of the players, saying, “The PIF was an honorable business partner until what we regard as its abandonment of LIV golfers.”

DP World Tour restrictions added another layer of uncertainty

The proposed relaunch also faced challenges arising from the wider professional golf landscape.

At an October 14 bankruptcy hearing, LIV Golf’s lawyer, Robert Fitzgerald, raised concerns about the DP World Tour’s position on players who wanted to participate in both circuits.

The DP World Tour had indicated that prospective members would have to choose between competing on its circuit and joining LIV 2.0 for the 2027 season.

As soon as the news broke, many LIV golfers decided to head back to the DP World Tour.

LIV’s legal team argued that the timing of this position could interfere with its restructuring efforts. Judge Michael B. Kaplan acknowledged the concerns raised during the hearing.

The proposed restructuring received an important legal milestone in October when Judge Michael B. Kaplan approved the agreement between LIV Golf and BC Partners.

However, the decision did not guarantee the league’s reorganization would succeed.

He explained that the process could ultimately proceed through “continuing operations or a wind-down.”

Court approval had allowed LIV Golf to pursue the proposed restructuring, but the business still needed to satisfy the remaining requirements and secure the necessary financial and player commitments.

The proposed BC Partners arrangement was different.

It aimed to establish a more financially disciplined successor, with a scaled-back schedule, player ownership, private investment, and a greater emphasis on commercial sustainability.

The original financing proposal included a $127.5 million term loan, $147.5 million in senior preferred equity, and $25 million in subordinated convertible preferred equity, subject to adjustments under the transaction documents.

BC Partners and potential minority investors were expected to receive a 45% stake in the reorganized business, while players would collectively own 52.5%.

The prospective investors needed confidence that LIV could attract enough recognizable players, maintain a competitive schedule, and generate sufficient commercial interest.

LIV’s problem was no longer simply finding another investor. It was convincing enough golfers to make the proposed investment commercially worthwhile.

With BC Partners reportedly abandoning the rescue arrangement, LIV Golf faces the possibility of moving away from its proposed reorganization and toward liquidation.