LIV Golf Bankruptcy Hearing Reveals Restructuring Timeline
- Anticipate that decision will be made by the end of the month, Robert Fitzgerald of Gibson Dunn said regarding whether LIV Golf will wind down its operations or...
- Kaplan approved a restructuring support agreement between LIV Golf and BC Partners Global during Wednesday's procedural hearing.
- 5 state BC Partners agreed to an initial participation of $4 million.
Anticipate that decision will be made by the end of the month,
Robert Fitzgerald of Gibson Dunn said regarding whether LIV Golf will wind down its operations or push forward with a restructured league. LIV Golf’s future timeline took shape during a Chapter 11 bankruptcy hearing on Wednesday in federal court.
Bankruptcy Restructuring Support Agreement Approved
U.S. Bankruptcy Court of New Jersey Judge Michael B. Kaplan approved a restructuring support agreement between LIV Golf and BC Partners Global during Wednesday’s procedural hearing. The agreement provides $300 million in cumulative financing to help the league survive after losing funding from the Saudi Arabian Public Investment Fund. Under the terms, players will hold 52.5 percent ownership and signing bonuses, while BC Partners and other investors hold 45 percent, and management retains 2.5 percent.
Court documents filed on Oct. 5 state BC Partners agreed to an initial participation
of $4 million. Judge Kaplan noted that approving the agreement does not confirm a formal plan or validate claims, but serves as an important first step to identify viable paths for continuing operations or managing a wind-down.
Player Contract Rejections And DP World Tour Interference Claims
LIV attorneys used Wednesday’s hearing to accuse the DP World Tour of player interference following comments made on Monday by Guy Kinnings to BBC Sport. Kinnings stated that the European circuit would ban golfers competing in LIV 2.0 from teeing up on their tour. That will no longer be allowed in 2027 should LIV Golf 2.0 get off the ground.
The timing in particular strikes us as a clear attempt to interfere with our process with our players and potentially our reorganization writ large,
Fitzgerald told the court. Judge Kaplan acknowledged that Kinnings’ remarks raise concerns. Meanwhile, the court approved LIV’s motion to reject the current contracts of 19 golfers, including Bryson DeChambeau and Dustin Johnson, because the agreements do not reflect the proposed compensation structure of the 2.0 version. Jon Rahm’s attorney told the court that the two-time major winner would not participate in LIV 2.0 because he found the terms unacceptable,
while golfers David Puig, Abraham Ancer, and Adrian Meronk have exited in the past week.
Player Commitment Deadlines And Future Court Dates
The restructuring agreement establishes an Oct. 25 deadline for players to commit to LIV Golf 2.0, though BC Partners holds the option to waive that date. To move forward, LIV must secure commitments from a requisite number of players necessary to ensure the continuation of the Company Parties’ business as a bona fide golf league. The next bankruptcy hearing in the case is scheduled for Oct. 20, and the Saudi Arabian Public Investment Fund faces an Oct. 30 deadline to support the restructuring plan, which targets an effective date of Jan. 6, 2027.