LIV Golf decision on wind-down or 'LIV 2.0' expected by end of October

An attorney representing LIV Golf told a U.S. federal bankruptcy court judge on Wednesday that a decision is expected by the end of October. The league will either cease operations or move forward with a proposed model called LIV 2.0. Reuters, ESPN and The Japan Times all reported the timeline.

About one week before the hearing, an attorney for Jon Rahm told the court that Rahm would not be part of LIV 2.0. The Japan Times described this as a decision to quit LIV Golf. According to The Japan Times' summary of the attorney's statement, Rahm independently reviewed the proposed terms before deciding.

Court rulings and financing

According to ESPN, the LIV Golf attorney was Robert Fitzgerald. The judge was Michael B. Kaplan of the U.S. Bankruptcy Court of New Jersey.

ESPN reported that Judge Kaplan approved LIV Golf's motion to reject the current contracts of 19 golfers. ESPN named Bryson DeChambeau, Dustin Johnson, Cameron Smith and Bubba Watson among them. The reports reviewed by Vocemundi do not include the full list. LIV Golf said the contracts "do not reflect the contemplated compensation structure under LIV 2.0."

The judge also approved an amended restructuring support agreement, according to ESPN. Under it, BC Partners would provide up to $300 million in financing for LIV 2.0. This includes an initial $4 million loan to support operations during the Chapter 11 process. A term sheet filed with the court gives golfers 52.5% of equity, BC Partners and potential minority investors 45%, and management 2.5%, ESPN reported.

Player moves

According to ESPN, Smith, Marc Leishman and Harold Varner III had asked to be released from their LIV contracts. The reports do not say whether those requests were granted. ESPN cited unnamed "multiple reports" that David Puig and Abraham Ancer are also leaving.

ESPN reported that attorneys for an ad hoc group of LIV golfers appeared at a hearing for the first time on Wednesday. The group includes DeChambeau, Johnson, Watson and Lee Westwood. The reports do not describe the group's position.

What each side says

DP World Tour CEO Guy Kinnings told BBC Sport on Monday that the tour will not give conditional status to golfers who join LIV 2.0 in 2027, according to ESPN. This differs from the previous few seasons. Golfers must apply for membership by 16 November, ESPN reported.

ESPN quoted Fitzgerald as saying the timing "strikes us as a clear attempt to interfere with our process, with our players, and potentially our reorganization writ large." He said LIV was "reserving all rights and remedies" and raised anti-competitive concerns.

Judge Kaplan said he had read and heard Kinnings' comments and that they "do raise concerns," according to ESPN.

The reports reviewed by Vocemundi do not include a DP World Tour response to LIV's allegations.

Analysis

The decision due by the end of October will determine whether LIV Golf ceases operations or moves forward as LIV 2.0, which matters for the players whose futures with the league are now in question. If LIV 2.0 proceeds, its player-majority ownership model would be an unusual arrangement in professional sport. Its viability may depend on how many players sign new contracts. The DP World Tour's membership stance could affect those choices, especially for players hoping to remain eligible for the European Ryder Cup team. LIV's interference claims are, so far, statements in court, not findings. Key details rest largely on a single outlet's reporting, and the criteria for the final decision are not described in the reports.

Produced by the Vocemundi newsroom with AI assistance.