‘Not going to happen’: LIV Golf on brink of collapse

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LIV Golf is on the brink of collapse as an investment saviour pulls out, with South Australia’s premier saying the tour appears doomed.

An investment firm has dropped its bid to relaunch LIV Golf, the Financial Times reported, after high-profile players including Jon Rahm and Australia’s Lucas Herbert left the breakaway tour.

The firm, BC Partners, was looking to replace Saudi Arabia’s Public Investment Fund (PIF), which withdrew as chief backer last year.

LIV Golf
SA Premier Peter Malinauskas (left) wants clarity from LIV Golf chief Scott O’Neil (right). (Michael Errey/AAP PHOTOS)

But BC Partners pulled its financing bid, with the private capital firm reportedly questioning the league’s viability as player commitment deadlines approached.

LIV Golf filed for bankruptcy in September, with a hearing scheduled ⁠for a US bankruptcy court on ‌Thursday, when the liquidation process could begin.

The developments cast further uncertainty on the future of Australian star Cameron Smith, who was captain of the all-Aussie Ripper GC on the LIV circuit.

Unlike Herbert, who has walked away from LIV, Smith and his Ripper teammates Marc Leishman and Elvis Smylie have yet to signal their intention.

A LIV Golf spokesperson could not immediately be reached by AAP for comment.

LIV Golf
Bryson DeChambeau attracted huge crowds this year at LIV Golf’s benchmark Adelaide event. (Matt Turner/AAP PHOTOS)

Adelaide hosted four LIV Golf tournaments, lauded as the tour’s benchmark for attracting crowds of more than 400,000 spectators overall.

SA Premier Peter Malinauskas said the tour appeared over.

“BC Capital Partners have made it clear that they don’t intend to support LIV if they don’t get the players required, which is essentially consistent with the South Australian government’s position,” Malinauskas told reporters in Adelaide.

“I have reached out to LIV Golf over the last couple of hours and sought confirmation myself.

“It’s fair to say that on all accounts, for all the information we have before us, I think it’s not going to happen next year.”

Malinauskas said LIV Golf’s Adelaide tournament had been an “economic boon” worth $316 million for his state.

Jon Rahm
Jon Rahm was a huge drawcard at the Adelaide event, which brought millions to the state’s economy. (Matt Turner/AAP PHOTOS)

“It worked, big-time,” he said.

“In fact it blew everyone’s expectations (away), including my own …  it worked out to be a punt that paid off.

“The fact that it’s not going to in the future just invites us to redouble our efforts with the Women’s Australian Open at the beginning of 2028 and the men’s (open) at the end of that year.”

Saudi Arabia’s PIF spent $US5 billion on LIV Golf, offering huge contracts to entice drawcards such as Australia’s Smith, understood to have signed on for $US100 million, former world No.1 Rahm, and Americans Bryson DeChambeau and Phil Mickelson.

The PIF also offered enormous tournament purses of $US20 million, including $US4 million for an event’s individual winner, plus $US3 million for a the team winner.

LIV Golf
Cameron Smith, Marc Leishman, Elvis Smylie and Lucas Herbert won this year’s team prize in Adelaide. (Matt Turner/AAP PHOTOS)

LIV Golf’s scheduled appearance at a bankruptcy court in Trenton, New Jersey, on Thursday was expected to discuss various contracts, leases and assets.

Last month, a US bankruptcy judge approved LIV Golf’s request to reject 19 player contracts, including Smith’s, as part of the tour’s  bankruptcy proceedings and transition to LIV Golf 2.0.

That means Smith and the 18 other golfers were no longer bound by his old agreement and were free to negotiate new terms with LIV 2.0, or explore opportunities with other tours.

Smith was listed as an unsecured creditor in the bankruptcy filings, owed about $US4.84 million in past quarterly payments.