{"id":845862,"date":"2026-08-06T18:06:12","date_gmt":"2026-08-06T18:06:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/845862\/"},"modified":"2026-08-06T18:06:12","modified_gmt":"2026-08-06T18:06:12","slug":"liv-golf-says-it-found-an-investor-heres-what-that-really-means","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/845862\/","title":{"rendered":"LIV Golf Says It Found An Investor. Here\u2019s What That Really Means."},"content":{"rendered":"

\"LIV<\/a><\/p>\n

It\u2019s not hyperbole to say that LIV Golf is one of the least attractive investment opportunities in sports. Just think about what you are buying. The organization has hundreds of millions in liabilities, no guarantee that its biggest stars (Bryson DeChambeau and Jon Rahm) will be playing there after this year, and its expenses are so high that it has lost $8.50 for every $1 it has invested in the product.<\/p>\n

Even if you wanted to make it work, the world\u2019s largest sovereign wealth fund has already pumped $6 billion into the project and signed some of the sport\u2019s biggest names. If that couldn\u2019t help LIV attract a TV audience, what makes you think a smaller investor, with a reduced schedule and smaller tournament purses, will? <\/p>\n

That\u2019s not me being harsh; it\u2019s just the reality at this point. But that\u2019s also why I was surprised to hear LIV CEO Scott O\u2019Neil say that the league has signed a term sheet with a lead investor to \u201cfund and carry\u201d the league through 2030.<\/p>\n

O\u2019Neil refused to name the investment partner and said that the product would fundamentally change: 14 annual events to 10 annual events, with 5 in the U.S. and 5 international. Tournament purses would drop meaningfully, and players would mostly be compensated with equity going forward, rather than cash. As a result, O\u2019Neil says LIV Golf 2.0 would be majority owned by the league\u2019s players.<\/p>\n

That sounds mostly positive. Given the league almost folded midseason earlier this year and only survived when Saudi Arabia agreed to finance the remainder of the 2026 schedule, any investment that keeps the league alive beyond this year is likely considered a win. But it also didn\u2019t take long for more details to emerge.<\/p>\n

Later in the day yesterday, Bloomberg reported<\/a> that 1) LIV is working on a deal with BC Partners and 2) while BC Partners and LIV Golf\u2019s executive team may have agreed to broad terms, a term sheet has not yet been fully executed. The Financial Times then added more color after that, reporting<\/a> that BC\u2019s investment is contingent on LIV Golf retaining enough star players. The FT also reported that LIV\u2019s star players want their contracts paid out and that Saudi Arabia might be willing to pay those contracts out at a discount in exchange for a release of liability. That essentially means Saudi Arabia would be willing to pay the players a fraction of their guaranteed contract upfront in cash, but if the players accept, they could no longer take legal action against Saudi Arabia if it came down to that.<\/p>\n

As you can see, the details are still pretty murky. O\u2019Neil says LIV Golf will have more to say when the deal is finalized in September, but I still think it\u2019s worth running through what actually needs to happen for this agreement to make sense.<\/p>\n

For starters, BC Partners cannot invest $300 million in LIV, LIV continues to operate as it has before, and everything is fine. The actual transaction probably needs to accomplish four things at once: 1) eliminate or restructure hundreds of millions of dollars in existing liabilities, 2) secure fresh capital to fund the operation through 2027 and beyond, 3) lock in enough star players to preserve commercial value, and 4) reduce LIV\u2019s annual operating burn by several hundred million dollars. Without all four, any new investor is just delaying the inevitable.<\/p>\n

Secondly, BC Partners is an investment firm that operates in both the private equity and private credit space, but the firm\u2019s potential deal with LIV Golf is being done as a credit transaction. That means BC Partners is lending money to LIV Golf, not necessarily investing new money in exchange for equity. Maybe they end up doing a little bit of equity too, but labeling this as a credit deal is an important distinction because these transactions usually come with a few caveats.<\/p>\n

For example, BC Partners will likely structure the transaction as senior secured debt, lending money to LIV against the organization\u2019s assets, contracts, bank accounts, media contracts, sponsorship receivables, team equity interests, and intellectual property. Rather than making all $250 million-$300 million available immediately, BC Partners could also make capital available in tranches for the 2027, 2028, 2029, and 2030 seasons. Additional capital commitments would then likely be contingent on Rahm, DeChambeau, and other stars remaining with the league. It also wouldn\u2019t be uncommon for BC Partners to put contingencies in the agreement around a minimum number of events played annually, sponsorship income targets being reached, and guidelines around budget and profitability.<\/p>\n

This is where it gets interesting. LIV can\u2019t succeed without its star players, but those players are expecting hundreds of millions in compensation, which LIV can\u2019t pay without going out of business. That\u2019s why O\u2019Neil keeps stressing the point about equity. Even without disclosing all of the details, it feels obvious that LIV Golf is trying to walk the tightrope. LIV wants to settle its existing contracts \u2014 Jon Rahm is still reportedly owed $150 million \u2014 by having Saudi Arabia pay them out at a discount in exchange for a release from any liability. LIV then wants to re-sign those star players by paying them less cash but more equity. That enables O\u2019Neil to say the league is run by its players, even though most of that equity would just be written on paper and BC\u2019s eventual agreement will likely be contingent on BC receiving final decision-making authority over the parent entity.<\/p>\n

In simple terms, there is a world where LIV\u2019s players hold 55-60% of the common equity while BC Partners still possesses all the important stuff \u2014 the first claim on cash flows, the ability to initiate\/end dividend payments, approval rights over budgets, the right to accelerate the debt after a default, and warrants that dilute player interests. And then there is the liquidation preference, which means, if a sale or transaction occurs, BC will get paid first and preferred investors get paid second, with players holding common shares receiving whatever is left after that.<\/p>\n

Your guess is as good as mine as to whether or not that plan works. Bryson DeChambeau appears to be in it for the long haul, and BC Partners is actually an investor in the agency that represents him, so maybe there is some connection there. But personally, I find it hard to believe LIV will convince Jon Rahm to 1) accept a ~50% haircut on the $150 million he is owed and then 2) also agree to keep playing on LIV in exchange for equity in the new organization (post-bankruptcy filing). I assume Rahm will ask for preferred equity, rather than common equity, because common equity in a loss-making league could literally be worth nothing. But I also think LIV would have to sweeten the offer for him to even consider returning. We\u2019re talking about things like anti-dilution protection, potential board representation, and cash payments triggered by future financing.<\/p>\n

Given Rahm is still owed ~$150 million, and DeChambeau will request another nine-figure compensation package, those two players alone could end up owning a significant piece of LIV Golf if the organization is valued around ~$500 million.<\/p>\n

I tell you all this to say that LIV Golf may not be dead, but that doesn\u2019t mean it is alive. LIV still has a long way to go, and so many things have to go right for O\u2019Neil to pull off this restructuring. And even if LIV does pull off the unlikely, potential investors will almost certainly put in protections to ensure they get a return on their money should LIV fail to grow its commercial operations.<\/p>\n

If you enjoyed today\u2019s newsletter, share it with a friend.<\/p>\n

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