LIV Golf Files for Bankruptcy; Cameron Smith Among Players Owed Millions

LIV Golf filed for Chapter 11 bankruptcy protection in the United States on September 8, collapsing the Saudi-backed breakaway golf league after losing its main financial backer. The filing instantly voids all player contracts, freeing stars including Australian Cameron Smith to negotiate with other tours. At least AUD 45 million is owed to 14 current and former players, with Smith owed AUD 6.6 million and Jon Rahm topping the list at AUD 10.2 million.

Why LIV Golf ran out of money

Saudi Arabia’s Public Investment Fund, which had invested an estimated AUD 6.9 billion over four years, pulled its funding in April 2026 as part of a broader shift toward investments with better returns. The league had spent billions since launching in 2022 to sign top players away from the PGA Tour with giant contracts and faster tournament formats. Without the Saudi backing, LIV could not meet its payment obligations to players.

Who is owed money and how much

Jon Rahm tops the creditors list with an unsecured claim of AUD 10.2 million. Bryson DeChambeau is owed AUD 7.8 million, Dustin Johnson AUD 7.4 million, and Cameron Smith AUD 6.6 million. Australian Lucas Herbert is also owed about AUD 1.3 million. The total owed to 14 current and former LIV players in the top 30 creditors is just over AUD 45 million, according to court documents filed in the United States Bankruptcy Court for the District of New Jersey.

What happens to players now

The bankruptcy filing instantly ends all current contracts with LIV players, freeing them to negotiate with other tours including the PGA Tour. LIV remains in advanced discussions with players about taking control of a restructured business, with BC Partners Credit providing exit financing. The reorganized company is expected to be majority owned by players and plans to commence a new league early next year, though players have no obligation to sign on.

The scale of LIV’s collapse

LIV estimates its assets between AUD 138 million and AUD 690 million, but its liabilities between AUD 690 million and AUD 1.3 billion. The league recently laid off the majority of its staff. CEO Scott O’Neil said the bankruptcy process gives the company structure and time to pursue a restructuring that aligns players’ interests with the league’s long-term success.

Final Thoughts

LIV Golf’s collapse leaves Australian players like Cameron Smith free to pursue millions in unpaid fees through bankruptcy court while exploring new opportunities. The Saudi-backed rebellion against the PGA Tour has ended, but a player-majority restructure may emerge in 2027.

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