The bankruptcy court cleared a restructuring support agreement under which BC Partners Credit and co-investors would provide up to $300 million and, under the term sheet, take 45% of a reorganized league, with players offered 52.5% if enough of them sign on by Oct. 25.
LIV Golf's path out of bankruptcy now runs through a private credit firm's judgment about which golfers it needs.
On Wednesday a federal bankruptcy court in New Jersey signed off on LIV's restructuring support agreement with BC Partners Credit. The agreement provides up to $300 million in loans and investment to fund the league through and out of bankruptcy. LIV filed for Chapter 11 on Sept. 8 after Saudi Arabia's Public Investment Fund said it would stop funding the league. Court approval of the agreement is not approval of a plan; the term sheet's ownership split still has to survive the plan process.
The ownership split
Under the term sheet, players who commit to the reorganized league, which LIV calls LIV Golf 2.0, would together own 52.5% of it. The financier's side, BC Partners plus whatever minority investors join it, takes 45%, leaving 2.5% for executives. Players would also receive signing bonuses and certain name, image and likeness rights.
That would make the financier group the largest single bloc in a league its players collectively control on paper, while giving it the money and, through the agreement, a gatekeeping role.
The real condition
The commitment window closes on Oct. 25, though BC Partners has the right to push that date back or drop it altogether. Crucially, BC Partners decides how many players constitute a sufficient commitment and which specific players must be included. LIV's chief executive has said the league needs a "critical mass" of current players.
"Approval of [the agreement] is an important step, but it does not dictate, necessarily, confirmation of a plan or approval of a disclosure statement," Judge Michael Kaplan said at the hearing. "This is an important first step in order to really identify viable paths for the debtor, either through continuing operations or a wind-down."
The judge also approved LIV's motion to reject certain player contracts, including those of 19 players such as Bryson DeChambeau and Dustin Johnson.
The competitive threat
LIV's lawyer told the court the league is "quite concerned" by the DP World Tour's move to require players who want to compete on the European circuit in 2027 to commit that they will not play in LIV Golf 2.0. He called the timing "a clear attempt to interfere with our process with our players." The judge said the comments "do raise concerns."
The investment case
For BC Partners, the bet is that a smaller league, with a scaled-back schedule of about 10 events, as LIV's chief executive has described it, and player ownership aligning incentives, can be run profitably once the PIF's spending is gone.
The risk is that the best players choose established tours instead, leaving an asset whose value depends on star power without the stars. The judge's own words, continuing operations "or a wind-down," make clear both outcomes remain possible.
What to watch
The next hearing on Oct. 20, the Oct. 25 player commitment deadline and whether BC Partners extends it, and how many of the league's best-known players sign.