Karma hits back. That is probably the thought running through Jack Nicklaus tonight as he reads the news. The long-running feud he had with the company that bears his name has taken yet another dramatic turn. Just weeks ago, the 18-time major champion prevailed in the defamation case. And now, a direct result of that lawsuit has shown the company an exit door from its business.

On Friday, Nicklaus Companies LLC announced that it had filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of Delaware. A statement issued by the company claims that last month’s $50 M defamation judgment awarded to Nicklaus has caused severe financial strain.

Hence, it was taking this decision. In the meantime, it hopes to stabilize the finances and address other financial discrepancies within the company.

The “strain” the Nicklaus Companies refers to is evident from a glance at the court documents. The company lists estimated assets of just $10M to $ 50M. Then, some liabilities range from $500M to $1B. This imbalance is striking, and immediate steps must be taken to fix it. The same was acknowledged by the company’s CEO, Phil Cotton.

“We take this step to protect our brand, our client relationships…our employees,” he said in a statement. “We are dedicated to protecting the brand and continuing to offer the highest standard of service to our clients all over the world.” All this really opens eyes on how severely rattled the organization was after losing to Nicklaus.

It was October 20th when a six-person jury in Palm Beach County finally found Nicklaus Companies responsible for defaming its founder.

The lawsuit, which dates back to 2023, revealed deep fractures between the golfer and (friend-turned-foe) Howard Milstein. Nicklaus filed the case after the company spread claims that he was offered a massive $750 M to join LIV Golf. LIV, as even a rookie would know, is currently the PGA Tour’s direct competitor.

Moreover, there were also claims about the golfer suffering from dementia and old age. Statements were issued by several of the company’s employees, including Andrew O’Brien, suggesting that Nicklaus cannot be left alone to fend for himself. Both of these were debunked by the golfer’s attorney, Eugene Stearns, during the judgment.

“We’re happy that this is all soon going to be behind Jack, and hopefully, the Nicklaus Companies will do fine, as well. But it was an unfortunate incident, and hopefully now it’s over,” said Stearns.

So how did Nicklaus win the case?

Top Stories

Greg Norman Takes Credit for Scottie Scheffler’s $195M Earnings as He Sends Message to PGA Tour CEO

Tour Pro Hit With Brutal 5-Month Punishment Only 11 Days After Celebrating Career Feat

Brooke Henderson Sets the Season Finale Tone With Unreal Putt at CME Group Tour Championship R1

Jordan Spieth Set to Pay a Heavy Price for Unexplained PGA Tour Absence

LPGA Pro Shocks Commentators With Rare Move at CME Group Tour Championship

What did the court find?

At some point, several testimonies and filings proved that Nicklaus had actually met with a representative of the Saudi-backed league. But when it was probed further, it was found that the meeting was arranged to discuss a potential course-design project.

Although officials from LIV indeed brought up the offer to Nicklaus, the PGA Tour veteran immediately declined. The reason was his longtime loyalty to the Tour as well as his role in spearheading the organization during its initial days.

At the same time, the company had already barred Nicklaus from using his own Name, Image, and Likeness (NIL), claiming that it now owned the stakes. But that judgment was dismissed eventually, just earlier this year.

All of these together, Nicklaus’ attorneys claimed, impacted his reputation and exposed him to “ridicule, hatred, mistrust, distrust or contempt.”

Despite all this, Howard Milstein and Andrew O’Brien were let off by the court, as the jury did not find them responsible.

“What they said was, ‘You need to have the keys taken away,'” Eugene Stearns said. “But the combination of all of that was unfortunate…So, we’re happy that Jack’s been vindicated.”