Without stars, should anyone care about LIV 2.0?
The DP World Tour's decision to not allow players to compete on both LIV 2.0 and the European circuit next season is the latest death knell to the formerly Saudi-funded league. The "Golf Channel Podcast with Rex and Lav" highlights why the loss of valuable players will limit LIV 2.0's entertainment value and commercial appeal.
The bankruptcy judge in LIV Golf’s Chapter 11 case approved the agreement between the league and BC Partners, a move that’s crucial to LIV Golf 2.0’s viability.
The agreement includes $300 million in loans and investments for the league and would allow LIV Golf to continue after losing funding from Saudi Arabia’s Public Investment Fund at the end of this season. According to the term sheet, players would receive equity in the restructured league as well as signing bonuses and “certain NIL [name, image and likeness] rights.” It also states, “go-forward player ownership will equal 52.5 percent” of LIV Golf 2.0. That would leave 45 percent equity to BC Partners and any minority investors and 2.5 percent equity to management.
“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 B. Kaplan explained during Wednesday’s hearing, which lasted about 35 minutes. “In approving [the agreement] the court is not ruling on the validity of claims, except limited carveouts for certain sponsor protections, nor any other aspects of a proposed plan.
“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 also approved a motion that would “reject certain player contracts.” That motion, which was filed by LIV Golf and is a standard step in bankruptcy cases, included the contracts of 19 players including Bryson DeChambeau and Dustin Johnson.
While much of the hearing was procedural, there was one notable turn when the attorney representing LIV Golf at the hearing, Robert Fitzgerald, outlined the league’s concerns over the DP World Tour’s recent move to force players who wish to play the European circuit in 2027 to commit on their membership form that they won’t play LIV Golf 2.0.
For the second time in nine months, players who took the Saudi riches of LIV Golf are facing a tight deadline on their future. The first was a lot easier to ignore.
“The court might be aware of articles regarding some statements that have been made by the DP World Tour. Our players have historically competed in events on that tour and have been assessed penalties for their simultaneous participation in LIV,” Fitzgerald said. “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.
“We are continuing to monitor the situation very closely and we’re quite concerned by it, frankly. The timing in particular strikes us as a clear attempt to interfere with our process with our players and potentially our reorganizing.”
Judge Kaplan appeared to agree, telling Fitzgerald, “the comments do raise concerns.”
The next hearing in the case is scheduled for Oct. 20 and the agreement set a deadline of Oct. 25 for players to commit to LIV Golf 2.0, although the agreement allows for BC Partners to extend or waive that deadline.
LIV Golf CEO Scott O’Neil referenced a need for a “critical mass” of player commitment to the 2.0 version of the league but according to the agreement, BC Partners will determine exactly what that number is and which specific players need to be included.