LIV Golf announced Tuesday that the league has begun its restructuring process by filing for Chapter 11 bankruptcy in the U.S. Bankruptcy Court of New Jersey with the assistance of BC Partners' credit business. The court-supervised restructuring mechanism will allow LIV Golf to pursue its next phase of "LIV 2.0" with players holding a majority ownership stake in the league.

"Plenty of well-known companies have taken this path before us, including Marvel Entertainment, Delta Airlines, and Caesars Entertainment, along with sports franchises like the Los Angeles Dodgers, Pittsburgh Penguins, and Leeds United F.C," said LIV Golf CEO Scott O'Neil in a letter to fans. "We are entering this process with a clear plan and the support of BC Partners, well-capitalized investors with deep experience in sports and entertainment."

The move comes after a tumultuous 2026 season in which the league's financial backer, Saudi Arabia's Public Investment Fund, ended its financial commitment, prompting the circuit to seek new investment to fund O'Neil's vision for a restructured league. LIV Golf was forced to cancel two tournaments, and it failed not only to pay vendors but also some of its players, according to court documents obtained by the Financial Times.

Two-time major champions Jon Rahm, Bryson DeChambeau and Dustin Johnson all possess unsecured claims north of $5 million. Other notable players to top the list include Cameron Smith, Tyrrell Hatton and Bubba Watson, each of whom is owed more than $3 million.

O'Neil provided more information about the league's future playing structure. LIV Golf plans to compete across five continents with fields expanding to 75 players. Tournaments will feature both cuts and Monday qualifiers. Music will continue to play during the competition. No definitive decisions on the 2027 schedule or any events have been announced yet, nor has a list of players who will make up those fields. 

Playing on the DP World Tour this week at the Irish Open, Rahm was asked by BBC Sport about his future with LIV Golf.

"There's just a lot of things in place, right? There's a lot of things that could happen, and it's one of those things where time's gonna tell," he said. "... I still have a contract with LIV 1.0 that I'm more than willing to fulfill. So, like I said, time will tell."

While the Spaniard has remaining years on his contract after signing with LIV Golf in 2023, amid the decision to file for bankruptcy, it is believed that LIV Golf's biggest prize fighter (along with DeChambeau, Johnson and others) will have an opportunity to exit the circuit. BBC Sport reports: 

BBC Sport understands there is no obligation on players to sign on to LIV 2.0, regardless of whether they had previously signed multi-year contracts with LIV Golf.

Sources have said contracts under the previous iteration of LIV Golf will finish because of this court filing, with amounts owed to players and other creditors addressed through the court process.

However, it remains unclear when players would then be able to enter discussions with other tours.

The PGA Tour has been hesitant to open an additional pathway for remaining LIV players to return, though some could regain their playing cards and compete in tournaments through traditional qualifying procedures.

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