On September 8, 2026, LIV Golf and related entities filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of New Jersey. The aim is to relaunch the league in 2027 with new investors and contracts. While bankruptcy rumors have circulated for several months, one thing stood out in the filing. In its restructuring announcement, the rebel league disclosed that Saudi Arabia’s Public Investment Fund (PIF) has agreed to lend $49.6 million in debtor‑in‑possession (DIP) financing. The amount is to help keep the league operating through the bankruptcy process, but there is a roadblock: the funds will be held in a “blocked account.” But why this financing mechanism?
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One of LIV Golf’s lawyers explained, “The reason for this structure is that we found over the last several months as we have had a credit agreement in place with PIF is that it hasn’t always been the easiest to get money,” according to Front Office Sports’ David Rumsey’s X post.
“There’s a lot of mechanics that go into obtaining funds from the Kingdom of Saudi Arabia. It’s not as easy as if this were a U.S. lender where we make a request and then within the next day, the funds come into the account.”
DIP financing refers to post‑petition credit that allows a Chapter 11 debtor to continue operations while under court supervision. However, because the amount is in a blocked account, the lender will also monitor and control spending under the DPI credit agreement. This structure lets PIF impose conditions precedent, reporting requirements, and milestone‑based releases. In simple terms, LIV gets the money, but PIF controls it—a mutually beneficial condition for both parties.
Recent months clearly highlight the challenges LIV Golf faced in securing financing from PIF. When the Saudi Arabian organization cut ties with the league in late April, it committed to funding the remainder of the 2026 season. However, according to the Financial Times, PIF released only $200 million of the $600 million needed to complete the 2026 season.
Because of a severe financial crisis, LIV Golf had to cancel the Louisiana (New Orleans) event and the Michigan Team Championship. The league first postponed the Louisiana event, citing weather as the reason. In mid-August, the league also canceled the Michigan event and made Indianapolis the de facto finale.
Apart from the cancellations, it failed to pay many of its vendors, who then filed lawsuits for nonpayment. Among them were Fresh Tape Media, which filed a suit for $1.23 million; Mobii Systems, for $1.10 million; Deltatre, for around $935,000; and Fantasy Interactive, Inc., for $1.08 million. The league also had to reduce the individual purse for the Indianapolis event by 50% to $10.1 million. If this wasn’t bad enough, LIV Golf even had to let go of many employees.
The $49.6 million remaining in the blocked account can help the league transition to LIV 2.0. LIV Golf plans to relaunch as soon as next year. It envisions a player-majority ownership model in which players will have about a 52.5% stake, new investors 45%, and management will hold only 2%. CEO Scott O’Neil called this a leaner and more commercially self‑sustaining model.
The DIP’s role is to bridge operations while LIV negotiates a reorganization plan and lines up exit financing. BC Partners Credit should anchor roughly $300 million in exit financing. It will also serve as plan sponsor upon emergence.
But until then, LIV Golf can use the $49.6 million for working capital, to settle its vendor and creditor payments, and for restructuring costs, such as legal and CRO fees. But this amount may not be enough because the filing lists at least 30 creditors.
Among those creditors are LIV golfers Jon Rahm ($7.5m), Bryson DeChambeau ($5.7m), Dustin Johnson ($5.5m), Cameron Smith ($4.8m), Tyrrell Hatton ($3.4m), and Brooks Koepka ($1.7m). LIV Golf also owes YouTube golf content creator Rick Shiels and the State of Louisiana over $1 million each.
Still, the $49.6 million DIP financing gives LIV Golf some breathing room as it works through bankruptcy and prepares for a potential 2027 relaunch.