LIV Golf has 35 days to secure its future. The breakaway league recently filed for bankruptcy protection in a New Jersey court, listing between $500 million and $1 billion in liabilities. It owes at least $45 million to prominent players, along with millions more to vendors and service providers. Now, a senior writer for The Athletic has pieced together critical details from sources and court filings, revealing just how much is at stake — and why LIV Golf is running out of time.
On Tuesday, September 15, Gabby Herzig appeared on 5 Clubs alongside host Gary Williams to reveal additional details about the league’s financial position. Before delving into the details, Herzig offered a disclaimer: she is neither a lawyer nor a restructuring expert, but has pieced together the information through extensive research and conversations with sources. She then shared several previously unrevealed figures and details, such as LIV’s revenue ($15 million) and the distribution of its income across various parts of the business. But that wasn’t the most interesting part for her. It was essentially a timeline of the key deadlines LIV must meet and the milestones it must accomplish in the days ahead.
“They’re planning on exiting bankruptcy in 120 days, but it’s really the 35-day mark that is super important for the future of LIV and the existence of Liv 2.0, as they’re calling it. The players have to sign on to this restructuring agreement within that timeframe,” she told Williams. “I believe October 13th is that very important date we’re looking at. And that’s a really fast timeline, Gary. There is so much uncertainty right now from what we’re hearing.”
Under the terms of the restructuring support agreement, the required number of players—defined as those holding eligible claims representing at least two-thirds of the total value and half of the total number of claims—must commit to the new terms by October 13. Insufficient player support could jeopardize the rescue financing and sponsorship secured by BC Partners, leading to significant concerns about the league’s planned relaunch in 2027.
LIV would want the majority to commit, but that may not be so easy.
When LIV Golf launched, it lured stars like Jon Rahm and Bryson DeChambeau from the PGA Tour with guaranteed “legacy” contracts worth hundreds of millions of dollars. Under U.S. bankruptcy law, companies can ask a court to reject binding contracts when the obligations place a significant financial strain on the business.
LIV is now seeking to replace its original, hefty cash guarantees with lower-cost player contracts. Under the proposed “Liv 2.0” restructuring plan, players would receive roughly 30% equity in their respective teams to compensate for the reduced salaries, replacing the massive upfront payments that helped launch the league.
Players who rejected contract offers now face a tough choice: accept new LIV deals with considerably less favorable financial terms or try to return to the PGA Tour and leave LIV behind. But that route offers no guarantee. The PGA Tour has signaled limited interest in bringing back the remaining LIV players, despite allowing a few former LIV players to return after departing the Saudi-backed league.
The development leaves LIV players in a difficult position. Because a Chapter 11 filing does not automatically terminate their contracts, players such as Rahm and Tyrrell Hatton remain in legal limbo until the court formally rules on the motion.
If the court grants the motion to sever the contracts, they would technically become free agents. But the substantial sums still owed under their original “LIV 1.0” signing bonuses—$7.47 million to Rahm and $3.37 million to Hatton—would become unsecured claims in the bankruptcy proceedings, leaving open the possibility that they recover only a fraction of what they are owed.