Judge Approves LIV Golf and BC Partners Settlement Agreement

A bankruptcy judge in LIV Golf’s Chapter 11 case has approved an agreement between the league and BC Partners. This approval is a critical step for the viability of "LIV Golf 2.0," the proposed restructured version of the league. The agreement provides $300 million in loans and investments, allowing LIV Golf to continue operations after losing funding from Saudi Arabia’s Public Investment Fund at the end of the current season.

Equity Structure and Player Terms

According to the term sheet, the restructured league will feature a new ownership model. Players will receive equity in the new entity, along with signing bonuses and "certain NIL [name, image and likeness] rights." The agreement specifies that "go-forward player ownership will equal 52.5 percent" of LIV Golf 2.0. The remaining equity is allocated as follows:

• 45 percent to BC Partners and any minority investors
• 2.5 percent to management

Judge Michael B. Kaplan emphasized during Wednesday’s hearing that this approval does not guarantee the final confirmation of a bankruptcy plan. "Approval of [the agreement] is an important step, but it does not dictate, necessarily, confirmation of a plan or approval of a disclosure statement," Kaplan said. He noted that the court is not ruling on the validity of claims, except for limited carveouts for certain sponsor protections. "This is an important first step in order to really identify viable paths for the debtor, either through continuing operations or a wind-down," Kaplan stated.

Contract Rejections and Player Commitments

Kaplan also approved a motion filed by LIV Golf to "reject certain player contracts." This is a standard procedure in bankruptcy cases. The motion included the contracts of 19 players, including Bryson DeChambeau and Dustin Johnson.

The agreement sets a deadline of Oct. 25 for players to commit to LIV Golf 2.0, although BC Partners retains the right to extend or waive this deadline. LIV Golf CEO Scott O’Neil referenced the need for a "critical mass" of player commitment, but the agreement states that BC Partners will determine the exact number required and which specific players must be included.

Concerns Regarding DP World Tour

During the hearing, LIV Golf attorney Robert Fitzgerald raised concerns about recent actions by the DP World Tour. Fitzgerald noted that the European circuit has moved to require players wishing to compete in 2027 to commit on their membership forms that they will not play for LIV Golf 2.0.

"Late last week, leadership at the DP World Tour made statements to the BBC and others that LIV players would no longer be entitled to participate in the DP World Tour and that LIV players must choose immediately whether they want to patriciate in LIV to the exclusion of the DP World Tour and vice versa," Fitzgerald said. He added that the timing of these statements strikes the league as "a clear attempt to interfere with our process with our players and potentially our reorganizing."

Judge Kaplan acknowledged the issue, telling Fitzgerald, "the comments do raise concerns." The next hearing in the case is scheduled for Oct. 20.

Why it matters

This approval provides a financial lifeline for LIV Golf as it transitions away from direct state funding. However, the league faces significant uncertainty regarding player retention and external competition. The DP World Tour’s requirement for exclusivity creates a potential conflict that could impact the "critical mass" of players needed to sustain the new league structure. The final confirmation of the bankruptcy plan remains a separate legal hurdle.

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Sources

• golfchannel.com: Judge approves agreement between LIV Golf and BC Partners - Golf Channel
• sports.yahoo.com: Judge approves agreement between LIV Golf and BC Partners - Yahoo Sports

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.