LIV Golf Purses Set to Drop 60% Under Bankruptcy Plan
By Staff Writer
2 min read
LoopGolf
Key takeaways
- LIV Golf is reportedly offering players equity in a restructured "LIV 2.0" entity in exchange for reducing guaranteed cash contracts through Chapter 11.
- Tournament purses would drop by roughly 60%, from about $25 million to around 40% of that level, according to reports cited in the settlement discussions.
- The 2026 Team Championship in Michigan was canceled, and staff terminations were reportedly set to conclude by the first week of September.
- A $992,000 lawsuit over unpaid app development fees has been filed against the league.
- Players who reject the settlement would reportedly become unsecured creditors, behind PIF's proposed debtor-in-possession financing of under $100 million.
LIV Golf is reportedly preparing a Chapter 11 restructuring that would offer players equity in a new, player-owned "LIV 2.0" entity in exchange for sharply reduced cash payouts on their existing contracts with the Public Investment Fund. The season's abrupt, subdued finish in Indianapolis, where the Team Championship was scrapped, has been read as an early sign of the financial strain behind the move.
What are players being offered?
According to details of the settlement circulating among player agents, LIV is offering equity in LIV 2.0 in place of the guaranteed PIF cash written into existing contracts, a swap widely described as a steep cut to face value. Players who decline reportedly face treatment as unsecured creditors in the bankruptcy process, ranked behind PIF's proposed debtor-in-possession financing of under $100 million, which would carry priority repayment status. Private equity firm BC Partners is reportedly evaluating an investment in the restructured league.
How much would purses be cut?
Reports cited in the settlement discussions put the reduction at roughly 60%, which would take individual tournament purses to around 40% of their previous level near $25 million. The financial strain is already visible on the operations side: the 2026 Team Championship in Michigan was canceled, and staff terminations were reportedly set to conclude by the first week of September. A separate $992,000 lawsuit over unpaid app development fees has also been filed against the league, adding to a queue of vendor claims.
| LIV 1.0 | LIV 2.0 (reported) | |
|---|---|---|
| Typical event purse | ~$25 million | ~40% of prior level |
| Purse reduction | — | ~60% |
Players are being asked to trade guaranteed, sovereign-backed cash for equity in a league that has not yet emerged from bankruptcy.
Can players who leave return to the PGA Tour?
Players considering a cash exit instead of the equity settlement face a restricted path back to the PGA Tour, where the Returning Member Program remains tightly limited, and to the DP World Tour, where fines and suspensions on LIV players remain in effect. Jon Rahm, who has earned $105.6 million in career LIV prize money, and Bryson DeChambeau closed the season at a scaled-back Chatham Hills event without the concerts and on-site programming that had defined earlier LIV finales.
Frequently asked questions
What happens if a LIV Golf player rejects the settlement offer?
Their contract would reportedly be treated as unsecured debt in the bankruptcy filing, placing them behind PIF's proposed financing for repayment.
How much would LIV Golf purses drop under the restructuring?
Purses are reportedly set to fall by about 60%, to roughly 40% of the prior level near $25 million per event.
Can LIV Golf players return to the PGA Tour?
The PGA Tour's Returning Member Program remains tightly restricted, and DP World Tour fines and suspensions on LIV players are still in effect.
- liv golf
- chapter 11
- pif
- jon rahm
- bc partners
- liv 2.0
- bryson dechambeau
- player contracts
