LIV Golf Begins Preliminary Work for Bankruptcy Filing
Bloomberg: LIV Golf Braces for Possible Collapse After This Season
$4 Billion Invested So Far as PIF Announces End to Sponsorship
Final Event Scheduled for August in Michigan This Year
LIV Golf is reported to have started the preliminary process for filing bankruptcy in the United States.
On May 19 (local time), Bloomberg reported, "LIV Golf is exploring various options, including seeking new financial investors, but is also preparing for the possibility that the tour could collapse when the season ends this August." The outlet also stated, "LIV Golf is considering relocating its headquarters to the United States to take advantage of more favorable bankruptcy laws."
LIV Golf is reported to have started the preliminary process for filing bankruptcy. Photo by AFP Yonhap News
View original imageLIV Golf has branches in the United Kingdom, the United States, and Jersey (a British Crown dependency). The ultimate controlling entity is the Saudi Public Investment Fund (PIF), headquartered in Riyadh, Saudi Arabia.
The reason LIV Golf is considering filing for bankruptcy in the United States is because of the country's Chapter 11 bankruptcy law. This law allows companies to restructure their finances and continue operations without having to declare insolvency. Bloomberg added, "We sought a response from LIV Golf regarding these reports but did not receive any reply."
LIV was launched in June 2022 after signing lucrative contracts with star players from the PGA Tour. It is known to have invested $4 billion (approximately KRW 6.05 trillion) so far.
LIV Golf has recently been facing instability. Last month, the Saudi Public Investment Fund (PIF) announced it would cease sponsorship from next year, putting the organization in a financial crisis. Brooks Koepka and Patrick Reed (both from the United States), among others, declined to renew their contracts with LIV Golf and returned to the PGA Tour.
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CEO Scott O'Neil expressed confidence that LIV Golf could secure new sponsors. He stated, "We have received 12 investment inquiries," adding, "The interest is very positive, including from private equity funds and high-net-worth individuals investing in sports." For this year, LIV Golf has scheduled events through the tournament to be held in Michigan, USA, in August.
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