LIV Golf was declared dead on Thursday. BC Partners, the firm that had pledged $300 million to save it, apparently isn’t ready to give up.
When it pulled that offer, BC released a statement: “BC Partners Credit supported a transaction that aligned the interests of players and investors, offering a credible path toward building a sustainable future for LIV Golf. While there was great support for the league, we are disappointed that mutually acceptable terms could not be reached among the various stakeholders. We commend LIV Golf’s management for their tireless efforts and thank the players who supported the future of LIV and engaged constructively throughout. We wish them every success as they continue their careers.”
According to the Financial Times, BC Partners now wants to buy the $50 million bankruptcy loan that Saudi Arabia’s Public Investment Fund (PIF) gave to LIV Golf. This loan is known as debtor-in-possession financing. It provides money to a company while it goes through Chapter 11 bankruptcy. The lender also gets an important say in how the bankruptcy case moves forward. By buying the loan, BC Partners hopes to gain more control over LIV’s future and continue working on LIV 2.0. BC had already contributed $4 million to the loan alongside PIF, which owned 98% of LIV Golf. However, the new offer is still at an early stage. It is not clear whether LIV or PIF even knows about the proposal.
The original LIV 2.0 plan had already run into trouble over player demands. Between 15 and 40 golfers showed interest in joining the new league, but talks soon became difficult. Some players wanted their cancelled financial guarantees to be paid. Others wanted the freedom to leave even after signing agreements. BC Partners could not meet these demands. The firm had planned a league with up to 17 tournaments, but PIF’s tight deadlines added to the pressure. In the end, BC decided it could not move forward with the original plan.
LIV Golf has lost about $5 billion since 2021. But those losses could still have some value. They are known as “net operating losses,” and they can help a company pay less tax on future profits. However, strict rules apply when a company tries to transfer these losses to another business. Under the original LIV 2.0 plan, players were set to own a majority stake partly to help protect this tax benefit.
BC Partners could also use these losses to build a company that buys other businesses. It has tried a similar approach with ContextLogic, in which it invested $150 million last year. The company’s shares have since risen. But there is one big problem: LIV’s $5 billion in losses is not actual money. As a bankruptcy analyst told ESPN, these losses are useful only if a company makes profits in the future. If LIV is liquidated, that tax benefit could disappear.
PIF began pulling away from LIV Golf in April after investing more than $5 billion in the league. ESPN puts the total even higher, at $6 billion. Now, it wants to walk away without being left with unpaid bills or legal battles involving players and vendors. Vendors could be owed $100 million or more, while only $2 million has been set aside for unsecured creditors. Selling the loan and reaching a settlement with creditors could help PIF make a clean exit. Bankruptcy attorney Kevin Eckhardt of Octus told ESPN that he believes there may be another reason behind the move, and suspects PIF wants to avoid having its financial records examined. “They don’t want to open their books,” he said.
The end now appears closer. On November 5, LIV’s lawyers told a New Jersey bankruptcy court that the league plans to wind down. “We believe the wind-down path is the best path,” attorney Matthew Williams said. However, LIV added that it could reconsider if the situation changes. The league must submit its liquidation plan by Monday, with the next court hearing set for November 24.
For the players, the situation is even more difficult. They are near the back of the line when it comes to getting their money back. PIF comes first because of a loan worth nearly $500 million made in June. This is separate from the $50 million loan provided during the bankruptcy process. Unsecured creditors, including players, rank second to last. Only shareholders come after them. Bryson DeChambeau is owed $5.77 million, while Dustin Johnson has a claim worth more than $5 million. Jon Rahm reportedly gave up around $100 million in claims when he left. The players’ committee is now pushing for a settlement with PIF, hoping to recover at least some of the money they are owed.
The PGA Tour requires proof that players are out of their contracts before it will talk. If a suspension like Patrick Reed’s one-year ban applies, players like Jon Rahm could return on August 24, 2027. That date is not official, and sources say DeChambeau could face more discipline. Rahm, Garcia and Hatton plan to play the DP World Tour in 2027, and DeChambeau must declare his plans there by November 16 according to the tour.
BC is betting that the PGA Tour’s 2028 schedule changes and DP World Tour losses leave a gap. Even if the bid works, the FT says the 2027 version may be thinner than 17 events. With PIF gone and two tours cool to LIV players, the revival depends on whether anyone will sign up.