Image courtesy LIV Golf.
By Rahul Banerji
LIV Golf has entered a formal restructuring process towards which it has executed a support agreement with BC Partners Credit, the breakaway league said on Tuesday.
In a statement, it said, “LIV Golf and its affiliates today (Tuesday) announced that it has entered into a restructuring support agreement with BC Partners Advisors L.P., the credit business of BC Partners” aimed at its proposed recapitalisation.
To continue as a player-first ownership model, LIV Golf went into a court-supervised restructuring process under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the District of New Jersey.
The reorganised company is expected to be majority owned by players discussions towards which are still under way to create a structure aligning their interests with the League’s long-term success.
Critical to restructuring success is retention of the league’s top draws, and there are reports that players like Jon Rahm and Bubba Watson are keen to exit, and are out of LIV’s internal communications loop.
The league’s management, however, struck a positive note.
“The people of LIV Golf, led by the players, have continued to show incredible resilience, commitment, and a shared belief in what we are building,” said LIV Golf CEO Scott O’Neil
Long road
“Thanks to their tireless work, LIV Golf has created a foundation to entertain and inspire the next generation of global golf fans around the world.
“This process gives us the structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf – one built around the fans, an innovative, player-first ownership model, and a part of the global golf ecosystem.
“We are excited about what lies ahead and yet, there is much to accomplish in the months ahead.
“We believe deeply in LIV Golf’s future, the opportunity in front of us, and the people who will help us realise it.
“We are grateful to our players, the incredible team at LIV Golf, our Board, BC Partners, and our partners all over the world standing tall with us, and we thank them for their belief in our next chapter.
“We will not rest until we deliver on LIV Golf’s full potential,” O’Neil added.
“LIV Golf’s players, employees, and business partners have been central to its growth since its founding. In just a few years, they have built a global platform and expanded the game of golf worldwide,” said Gene Davis, chairman of the Board’s Special Committee.
“The Board’s priority is to protect what they have built. Working closely with Scott, management, and expert advisors, we reviewed all available options and believe today’s actions reflect the most responsible path forward for the League and its stakeholders.”
Much though, remains to be done.
Court and stakeholder approval is one of them. In line with agreed case milestones, LIV Golf intends to emerge from chapter 11 and begin its new era in early 2027. Player retention is the other critical need.
PIF funding
Towards the league’s reboot, the Public Investment Fund of Saudi Arabia has agreed to provide $49.6 million in debtor-in-possession financing on the terms set forth in a credit agreement, subject to court approval.
Thereafter, on LIV’s emergence from chapter 11, BC Partners Credit and other potential minority investors are expected to provide exit financing and serve as the plan sponsor to capitalise the reorganised setup following Court approval.
LIV Golf is also seeking recognition of the U.S. chapter 11 proceedings in England and Wales to preserve the value of its international assets and operations.
Looking ahead
In a separate open letter, O’Neil said companies like Marvel, Delta Airlines and sports franchises Leeds United FC and LA Dodgers had gone through similar court-supervised restructuring, and LIV Golf was looking to “build a stronger and more sustainable future”.
“We intend to continue competing across five continents with events you’ve come to expect in places like Australia, South Africa, Mexico, England, Hong Kong, and the United States,” the letter said.
“We intend to expand our fields to 75 players, introduce a cut, and create additional pathways for players to earn their way into LIV Golf, including Monday qualifiers.
“Events will still have the music, culture, and energy that make a LIV Golf weekend unlike any other.
“More of our teams will embrace national identities, building on the passion and momentum of World Cup-style competition.
“The next generation of fans will be celebrated, and we will continue to welcome children under 12 to attend our events free of charge.
Fan engagement
“Our players will continue to engage with fans on site and across social platforms, fostering the meaningful connection today’s golf fans expect.
“We will continue to evolve the competitive format with our players and partners to expand access to the biggest stages in golf.
“Above all, we will continue working to make professional golf bigger, better attended, and more globally connected.
“I know that the next phase of LIV Golf will be an important part of a healthier global golf ecosystem.
“It will create more opportunity for players, bring elite golf to more parts of the world, and give teams and players a real stake in the future they are building.
“Transitions are rarely easy, but they are powerful when you know where you are going. And we do.”
How much of this will happen though, time will tell.
Also read: At last event in present format, La Sasso is youngest LIV champ
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