LIV Golf, facing a crisis after Saudi Arabia's Public Investment Fund (PIF) halted funding, has begun preliminary work to file for bankruptcy in the United States, according to reports.
Bloomberg reported Wednesday, citing sources, that "LIV Golf is exploring various options, including searching for new investors, but is also preparing for the possibility that the tour could collapse when the season ends in August." Bloomberg added that LIV Golf is also considering relocating its headquarters to the United States to take advantage of more favorable bankruptcy laws.
LIV Golf currently has offices in the United Kingdom, the United States, and Jersey, a British Crown Dependency, with its ultimate controlling entity being Saudi Arabia's PIF, headquartered in Riyadh.
Behind LIV Golf's consideration of a U.S. bankruptcy filing is Chapter 11 of the U.S. bankruptcy code. The law provides companies with an opportunity to restructure their finances and continue operations without falling into insolvency.
Bloomberg said it "attempted to confirm LIV Golf's position on the report but did not receive a response."
LIV Golf launched in June 2022, signing star players from the PGA Tour with massive financial offers. The circuit is reported to have invested $4 billion (approximately 6.03 trillion won) to date. However, its commercial performance over the past four years has fallen short of expectations. Brooks Koepka and Patrick Reed, both Americans, returned to the PGA Tour earlier this year.
