LIV Golf has petitioned for Chapter 11 bankruptcy protection in the United States, a move that effectively allows its roster of golfers to leave the organization. The filing comes in the wake of Saudi Arabia’s decision to withdraw its multibillion-dollar financial backing.
According to a statement from LIV Golf, the legal action is intended to “preserve the company’s business as a going concern” while it undergoes restructuring. The petition was submitted on Tuesday.
The withdrawal of funds from the Saudi-backed entity marks a significant turning point for the controversial league, which has been in a protracted dispute with traditional golf circuits. With the company now seeking judicial protection for reorganization, players are no longer bound by their existing contracts and are free to pursue opportunities elsewhere.
I wondered how long they’d hold on. The writing was on the wall since last summer.
Interesting they cite ‘going concern.’ With the main backer gone, where is the revenue coming from?
Good for the players finally! They were stuck in dead contracts while the funding dried up.
Chapter 11 implies they hope to restructure, but this looks like a slow death for LIV Golf.
So the Saudi money just vanished? That’s a massive plot twist I didn’t see coming.