LIV Golf’s future is taking a very different shape than it looked a day ago. CEO Scott O’Neil put out a statement confirming the league will move forward with “LIV 2.0” just hours after the reports of bankruptcy. More so, without commenting on bankruptcy. Within a day, reports have surfaced saying a Chapter 11 filing is very much in play as soon as next week. Golf writer and analyst Alan Shipnuck says that filing could be the smartest move LIV has, one that eventually makes it a legitimate tour option again, perhaps making it the fourth best.

Speaking on the Dan on Golf podcast, Shipnuck laid out why he thinks bankruptcy could put them after the three traditional tours in the market.

“They’re desperate for a lifeline. This could give us a LIV 2.0, which, you know, will be modest and not so noisy and not so controversial. It’ll just be the fourth-best tour in the world behind the PGA Tour, Europe, and Asia. And I mean, to my mind, that’s okay.”

“You know, how’s LIV Indy last week? And the finish was fun. You had a young talent in LaSasso, you had Rahm; you had Bryson. Like, if you like golf, it was golf. It was guys hitting golf shots under pressure. It was like, what’s not to like? And so when you strip away the stench of the Saudi money and you just think about LIV going forward, there is a place in the ecosystem for it. It’s very modest. It’s not the game-changer he wanted to be, but you know, that’s okay.”

He has reasons to believe that game. Take, for example, the process the league is following for its bankruptcy. The Financial Times first reported LIV could file for Chapter 11 protection as early as the week of September 7. It’ll take place in the federal court in New Jersey, with PIF expected to provide less than $100 million in debtor-in-possession financing. Moreover, Chapter 11 isn’t a shutdown route. Instead, it lets the company keep operating while restructuring what it owes, unlike Chapter 7 liquidation. It works for the league, as LIV still plans to run a 2027 season while the bankruptcy will shed its debt.

Then a clear reason why bankruptcy could push them to one of the viable tours is that it clears their debts. As he said, this has been a part of their playbook. Essentially, it will relieve them from the $150 million they owe Jon Rahm and the $40 million they still owe Dustin Johnson. Moreover, it could also help them with lawsuits that have been filed by four vendors.

That already mirrors the settlement process LIV is taking. PIF in LIV Golf has reportedly sought to split players into three groups: those who settle and stay for LIV 2.0, those who settle and leave, and those who reject the terms and chase their money as unsecured creditors. Any which way, it could put players in deep trouble, but the league may, however, overall survive.

That being said, Shipnuck also believes there’s a demand for a modest and lenient tour in the market. And if LIV’s bankruptcy goes smoothly, it could very well serve that for the players. For instance, the new blood it’s already hiring, like Michael LaSasso, who won LIV Indianapolis at just 22 years old.

Even though LIV is not getting enough players to accept their settlements, Shipnuck believes some players might eventually need it.

“Well, if you have options, you’re probably not doing it. If you’re Brendan Steele or Richard Bland or Graeme McDowell and you have some brand equity, you’ve won tournaments around the world, and you’ve had decent careers, a US Open champ in McDowell’s case, so like, you don’t want to serve a year suspension for the PGA Tour. You don’t want to pay the fines for Europe. It’s just a chance you can play 10 events on LIV.”

All in all, LIV 2.0 won’t be writing nine-figure checks like it did, but that’s not who it needs to convince. For players without suspension-free routes to the PGA or appetite to pay DP World Tour fines, a scaled-down LIV schedule might still get them a way to survive.