The bankruptcy filing was filed in federal district court in New Jersey, where LIV Golf created a subsidiary earlier this summer. Chapter 11 protection postpones a U.S. company’s obligations to its creditors, giving it time to reorganize its debts or sell parts of the business. PIF is providing a $49.6 million (£36.6 million) bankruptcy loan, called “debtor-in-possession” (DIP) financing, to help fund the process. Withdraw funding, PIF said the “substantial investment required by LIV Golf over the long term” was “no longer consistent” with its strategy. Despite its decision to stop funding LIV Golf, PIF added that it “remains committed” to its “substantial current and future investments in various sports as a priority sector.” On Tuesday, LIV confirmed international investment firm BC Partners as its proposed new investor in a letter to fans outlining its “next phase.” process that provides us with the time and framework to address prior financial obligations and complete a transaction that will make the next phase of the league a reality,” the letter said. “Simply put, this process is designed to build a stronger, more sustainable future for LIV Golf.” O’Neil added in a statement: “This process gives us the structure and time to carry out a landmark transaction and begin LIV Golf’s next chapter, one built around fans, an innovative ownership model, player first and a part of the global golf ecosystem.” LIV 1.0’s free-spending days are over, the letter said the new league would be “built around a sustainable business model.” Players will receive equity and individual trading rights will be returned to players, giving them greater earning potential, LIV Golf’s purses will be lower than those of PGA Tour events – which have increased in part due to the existence of LIV – but higher than those of DP World Tour events. proposed, with field sizes expanding to 75 players, introducing a cut, creating qualifiers and having more teams “embrace national identities”, with the ambition for teams to “grow into long-lasting global sports businesses”.
