LIV Golf has identified a new lead investor that will allow the league to continue beyond the current season and into the next decade.
CEO Scott O'Neil apprised media of the investment -- though he did not specifically identify the source of the money -- at a news conference ahead of LIV Golf New York, played at Trump National Golf Club in Bedminster, New Jersey. The New York Post previously reported that LIV Golf had secured a $250 million investment, while other outlets have reported that the league was looking for somewhere in the area of $300 million to $350 million in total capital infusion.
The future of LIV Golf will apparently lean more into the team golf concept, with O'Neil saying the schedule will be reduced from 14 events to 10 -- half in the United States and half abroad. Half of that 10-event slate will be focused on team play as opposed to individual play. O'Neil has maintained that selling franchises to investors remains a critical component of the future of LIV Golf. No franchise has ever been sold, but perhaps leading with team competition could prove a stronger selling point in the future.
How much money the players will compete for in any LIV Golf event is still the subject of conjecture. The expectation is that the one-year run of $30 million combined purses for each event is exactly that, with purses declining as a means of controlling costs.
Players competing on LIV Golf will have the option to participate in other tours where they have status, presumably including the Asian Tour and DP World Tour, as the PGA Tour is unlikely to welcome back any player still competing on LIV Golf. With the Asian Tour entering into a new partnership with the DP World Tour and PGA Tour, LIV Golf could lack the promotion-and-relegation system needed to maintain getting Official World Golf Ranking points for their individual events.
O'Neil also indicated that the players themselves will own a majority stake in the league after the deal closes, which he said would happen in a timeframe he knows but isn't definitive. How that equity is conferred to players is unclear, though O'Neil did briefly discuss vesting schedules, suggesting that players will have to earn out their equity by remaining a LIV Golf competitor.
A variety of players are owed a reported $250 million in contract fees, including Jon Rahm, whose long-term deal with the league is to be paid out over the length of the contract rather than in a lump-sum, up-front payment that most early adopters to the league received. However, LIV Golf may pursue a bankruptcy filing in the interest of reducing or eliminating outstanding money owed to players and vendors alike. In that scenario, Rahm himself may actually one of the largest creditors. It's unclear how a bankruptcy filing might impact Rahm's contract with LIV Golf and whether it would remain in force.
"When you're in a situation that is a bit fluid, where there's a bit of uncertainty, where there's some challenges and maybe some surprises here or there around the corner, we want to make sure that we are giving ourselves the best opportunity to do what's best for this organization to carry forward," O'Neil said Wednesday, asked specifically about a potential bankruptcy filing.
"We'll consider the best options at that time. That's not a decision we have to make, and we'll continue to do what's best."
Players were reportedly asked to sign non-binding forms expressing interest in what would seemingly be a conversion of owed money into league equity. Bryson DeChambeau, however, would need to negotiate a new contract with LIV Golf, as his expires at the end of this season. DeChambeau, according to The Athletic, led a players-only meeting on Tuesday in New Jersey to apprise players of the situation. Presumably, then, DeChambeau is seeking a future deal that would compensate him more in equity than in salary.
O'Neil, asked about the importance of retaining Rahm and DeChambeau, said he hopes they will remain in the league -- but also that they make not be completely necessary to keep LIV alive.
"So while I have all the time in the world for Jon Rahm and Bryson DeChambeau, I think I'd be remiss in saying they're not only two of the biggest, best golfers on the planet, but I think they're some of the biggest stars in sports, let alone golf," O'Neil said. "Would certainly love them to come along for the ride and journey because they carry maybe more weight than anybody in the game and I have a lot of time for that.
"I think we have enough support from enough players, and we have such an interesting format and global format, I think we'll do quite well in getting the right stars for this game."
