LIV Golf, BC Partners file restructuring support agreement amid bankruptcy case

Late Monday, the long-awaited restructuring support agreement between LIV Golf and BC Partners was filed in the league’s Chapter 11 bankruptcy case.

The agreement features a $300 million investment by BC into LIV Golf 2.0, which league CEO Scott O’Neil said would feature a scaled-back schedule and a more “disciplined” approach. The RSA also extends the deadline for current LIV Golf players to commit to the restructured league to Oct. 25.

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According to LIV Golf’s term sheet with BC Partners, which was a part of Monday’s filing, players would receive equity in the restructured league as well as signing bonuses and “certain NIL [name, image and likeness] rights.” According to the term sheet, “go-forward player ownership will equal 52.5 percent” of LIV Golf 2.0. That would leave 45 percent equity to BC Partners and any minority investors and 2.5 percent equity to management.

“We believe deeply in the future of this league and in the opportunity to build something distinctive alongside our players,” O’Neil said in a statement. “We’re delivering on our major milestones, and while there is still work ahead, today marks meaningful progress toward a player-owned, team-focused, truly global league that complements the wider game and creates new opportunities for players, fans, partners, and the next generation of golfers.”

In August at LIV Golf’s season finale, O’Neil referenced the need for a “critical mass” of current players to sign on to version 2.0 but didn’t give specifics. While generally he was likely referencing a mixture of stars, like Bryson DeChambeau who has been supportive of the league’s next chapter, and lesser-known players, there is also legal element to that number.

According to bankruptcy law, for Chapter 11 restructuring to occur at least two-thirds of the voting creditors from at least 50 percent of the total claims must approve of the restructuring plan. In the case of LIV Golf, the players who are still owed money under existing deals would likely be moved to their own class of creditors, apart from the various vendors who are also a part of the bankruptcy.

Amid LIV bankruptcy case, Sergio Garcia files to terminate contract with league

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Sergio Garcia is seeking an exit from his contract with LIV Golf amid the league’s Chapter 11 bankruptcy case in New Jersey.

It remains to be seen which players will remain with LIV Golf. Last week, Sergio Garcia submitted a six-page filing in the bankruptcy case asking for clarity regarding the Spaniard’s agreement with LIV Golf. “Termination of the agreement is consistent with [LIV Golf’s] statement that the agreement is ‘not part of [LIV Golf’s] go forward business plan’ and, accordingly, should not be objectionable to [LIV Golf],” the filing read.

LIV Golf would also have to present a business plan that was considered feasible for the bankruptcy to be approved.

A second-day hearing is scheduled for Wednesday in the New Jersey bankruptcy court but that, according to various sources, will largely be procedural.

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If approved by the court at a hearing scheduled for Oct. 14, the RSA will allow LIV Golf to start engaging with key partners — players, sponsors, media partners — regarding a potential go-forward relationship with LIV Golf 2.0. The league could also start preparing for 2027, which O’Neil said would feature 10 events with five tournaments in the United States and five international team events.