Source :- PERTH NOW NEWS
LIV Golf has filed for bankruptcy protection in the United States, with its stars, including Australia’s Cam Smith, likely to be free to quit – but they may also have to chase unpaid contracts through the courts.
The BBC reported LIV Golf has filed a Chapter 11 petition in New Jersey to “preserve the company’s business”.
This allows a company to reorganise its operations while protecting it from lawsuits, debt collection and attempts to close it down. It then produces a plan to pay off creditors, which in this case will include some of the world’s best-known golfers.
Saudi Arabia’s Public Investment Fund (PIF), which set up the league, decided in April to cease its backing, leaving tour executives scrambling for new funding.
PIF will provide $US49.6 million in financing to assist the Chapter 11 process, reported Reuters.
LIV Golf has said it will move to a majority player-owned league early next year, backed by BC Partners.
But players do not have to sign on to LIV 2.0, regardless of whether they had previously signed long contracts with the breakaway circuit.
Amounts owed to players and other creditors will be addressed through the court process, according to BBC
The 2026 LIV season ended earlier than planned after the cancellation of the team championship in Detroit. LIV confirmed it was “scaling back operations”, and some employees were laid off at the start of this month.
Other high-profile Australians to have played with LIV Golf include Marc Leishman, Elvis Smylie, Lucas Herbert and Matt Jones.
Speaking in the build-up to the Irish Open, before news of the Chapter XI petition broke, LIV’s biggest star, Jon Rahm, was asked if he knew what the future held.
“Yes and no, it hasn’t really changed from my last interview in Indianapolis a few weeks ago,” the two-time major winner said
“And 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.
“To be fair for us people that joined LIV, I’m pretty good at dealing with turbulence.”
