LIV Golf files for bankruptcy as next steps emerge following Saudi Arabia funding cut

LIV Golf has filed for bankruptcy after Saudi Arabia pulled its funding, with the breakaway project appearing to be nearing its end.

The league was set up in 2022 as a direct competitor for the PGA Tour - in a bid modernise the sport of golf.

Back by Saudi Arabia's Public Investment Fund, more than £3.7 billion was spent following the launch - which saw huge players like Bryson DeChambeau and Jon Rahm jump ship.

However, it was confirmed in April that the PIF would no longer support the project financially.

What will happen to LIV Golf players after league files for bankruptcy?

Fast forward a few months and it was announced that LIV was "scaling back operations".

After some staff were then laid off, a Chapter 11 petition, was filed in the United States on Tuesday. LIV say the move will "preserve the company's business" and allow the league to continue under a brand new model.

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According to the BBC, all players will have the option to leave as contracts signed under the previous iteration of LIV Golf will expire.

They are therefore under no obligation to continue with LIV Golf. CEO Scott O'Neil previously said they were "very urgently out there talking to those who are interested" and it appears as though the new approach will be for a majority player-owned league to kick off at the start of next year.

Even those with existing multi-year contracts do not need to continue as the deals will now finish up mounts, with fees owed to players addressed courtesy of the court process.

It does remain to be seen how quickly players can join tours such as the PGA.

Speaking to BBC recently prior to the news, Rahm said: "I still have a contract with LIV 1.0 that I'm more than willing to fulfil, so like I said, time will tell."

Meanwhile, DeChambeau said there was "a lot of potential moving forward".

Major changes to follow as LIV Golf files for bankruptcy

Though the PIF will no longer invest and splash the cash on star players and prize money, it is understood to be providing a bankruptcy loan of £36.6 million to help fund the process.

The bankruptcy filing was made in the federal district court of New Jersey and the Chapter 11 protection means there is time to reorganise debts or sell parts of the company in the US.

As outlined in a letter to fans, BCC Partners is the proposed new investor for the next stage, "built around a sustainable business model".

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Going forward, players will receive equity and allowed commercial freedom. Prize money is set to be higher than the DP World Tour but lower then the PGA tour.

In a statement, O'Neil stated that the process gives LIV "the structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf - one built around the fans, an innovative, player-first ownership model, and a part of the global golf ecosystem".