Saudi-backed LIV Golf is dead
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LIV Golf is officially shutting down, with attorneys on Thursday telling a bankruptcy court in New Jersey that the Saudi-backed league would transition from a restructuring plan to a liquidation.
Driving the news: This comes less than 24 hours after investment firm BC Partners walked away from a $300 million investment in LIV Golf, which had been on life support since Saudi Arabia's Public Investment Fund pulled its financial support.
Behind the scenes: A source familiar with the situation tells Axios that more than 30 players had signed onto the restructuring support agreement to participate in what was dubbed LIV 2.0.
- BC Partners, however, felt it needed additional players in order to make the league viable.
- Holdouts wanted more cash in lieu of equity — with the source suggesting that the demand was driven by agents whose fees are only tied to cash earnings.
State of play: The restructuring agreement's deadline arrived last week and was briefly extended. Saudi PIF, which had invested over $5 billion in the PGA rival, didn't want the deadline to extend indefinitely.
What a BC spokesperson is saying: "BC Partners Credit supported a transaction that aligned the interests of players and investors, offering a credible path toward building a sustainable future for LIV Golf. While there was great support for the league, we are disappointed that mutually acceptable terms could not be reached among the various stakeholders. We commend LIV Golf's management for their tireless efforts and thank the players who supported the future of LIV and engaged constructively throughout. We wish them every success as they continue their careers."
What LIV Golf CEO Scott O'Neill is saying: "Building a global platform designed to bring new, younger, and more diverse fans to the sport of golf has been the round of a lifetime for all of us. LIV Golf was fun, demanding, inspiring, at times challenging — but always rewarding..."
- "We thank our partners at the PIF for their collaboration and support, and BC Partners Credit for its engagement throughout this process. We are also deeply grateful to our employees, board, advisors, and fans around the world, whose dedication, resilience, and belief made this remarkable journey possible."
The bottom line: Around half of BC's investment was to come from co-investors, and it's unclear whether they would have moved forward with the existing roster. Now, however, it's a moot point.
