BC Partners Seeks To Control LIV Golf’s Bankruptcy Proceedings With $50 Million Loan From Saudi PIF

BC Partners has turned to Saudi Arabia's Public Investment Fund (PIF) to acquire a $50 million bankruptcy loan. This loan is known as ‘debtor-in-possession’ financing and will allow the London-based private equity firm control over LIV Golf’s bankruptcy proceedings.

In early November, LIV Golf announced it would wind down operations and liquidate, having lost big-name players and the financing it needed to stay afloat. The professional men’s golf league did maintain that it remains open to offers from third parties that could get more value from its assets.

LIV Golf’s future has been uncertain since it lost financial support from the PIF earlier this year. BC had offered the golf league $300 million to stage the 2027 tournament, but that plan fell through when several notable players opted not to commit to the league. This is in tandem with the equity firm’s belief in the success of a global team-based golf group and its commitment to arranging additional money and time ​to launch a LIV successor.

In September, the golf group filed for bankruptcy protection after the PIF confirmed that it would no longer be financially backing it after the 2026 season. The wealth fund, which had invested over $5 billion in the circuit since its launch in 2022, had said in April that backing LIV no longer aligned with its investment strategy.

Last week, BC confirmed that since it failed to secure enough player commitments, it would no longer pursue its plan to relaunch LIV Golf. This announcement came only days before the deadline for the private capital firm to prove that it had enough committed players to hold a 2027 tournament.

Multiple high-profile names in the golf world, like world number one Jon Rahm, Bryson DeChambeau and Dustin Johnson, have ceased their association with LIV this year. Some players left after the league filed for bankruptcy, while others refrained from signing a new contract before this year’s season, anticipating hard times for LIV.

As part of BC’s $300 million investment, arrangements were underway for next year’s tournament, but a lack of players’ commitment meant these plans had to be halted. A previously struck deal also collapsed after BC refused to meet the demands made by the players.

Approximately 15-40 players are considering signing with LIV, given recent developments, but they have various demands along with varying levels of interest. Some players want the liberty to withdraw from the agreement ​even after signing commitments, and some are seeking financial guarantees that had been cancelled during LIV’s ⁠bankruptcy process.

LIV sent shockwaves throughout the world of golf when it debuted in 2022, with its star power and past-their-prime veterans. The league had signed on several top players in the industry with contracts permitting them to participate in tournaments with no cuts and guaranteed paydays.

The PGA Tour banned members from competing in LIV Golf events, and deflecting players like Bryson DeChambeau, Dustin Johnson, ​Brooks Koepka and Phil Mickelson were suspended. This meant that the biggest golfers did not compete against each other outside of the four majors that are governed by separate bodies.

This suspension was contested in court. An antitrust ⁠lawsuit was also filed in which DeChambeau, Mickelson and some other players accused the PGA Tour of using monopolising power to penalise independent contractors. Some political commentators even went so far as to accuse Saudi Arabia of using LIV as a means to assuage its reputation and deflect criticism against its human rights violations. The Saudi government has repeatedly denied these claims.

The PGA Tour finally rejected the PIF’s $1.5 billion investment proposal, which appeared to be the last straw for the Fund to pull out of the venture in April, leading to LIV filing for bankruptcy only five months later.