LIV Golf faces an uncertain future after the latest setback as BC Partners Credit withdrew their $300m funding plan. (Photo: LIV Golf)
LIV Golf appears to be on the verge of collapse after its latest rescue plan has been abandoned, with Northern Ireland's Rory McIlroy suggesting the crisis could ultimately provide professional golf with an opportunity to rebuild.
In a dramatic new development, potential financial backer BC Partners Credit abandoned plans to invest up to $300 million (£223m) in a proposed revival of the controversial league, leaving its future in serious doubt.
The decision, reported on Wednesday, follows the withdrawal of Saudi Arabia's Public Investment Fund (PIF), which had poured more than $5 billion into LIV since its launch in 2022.
BC Partners had been exploring a restructuring of the organisation under a proposed LIV 2.0 banner, with a revamped tournament schedule, greater emphasis on team competition and a fresh financial model.
However, the investment group is understood to have concluded that the project was no longer commercially viable after failing to secure sufficient commitments from leading players for a 2027 season.
The latest setback comes just weeks after LIV filed for Chapter 11 bankruptcy protection in the United States, having been unable to secure the financial backing required to continue operating in its existing format.
The exodus of high-profile players has further undermined its prospects, with Jon Rahm, Tyrell Hatton, Sergio Garcia, Louis Oosthuizen plus Northern Ireland’s Tom McKibbin and Graeme McDowell among the prominent names who have moved away from the circuit.
World number two McIlroy, who has been one of LIV's most outspoken critics since its formation, believes the extraordinary financial experiment has ultimately created an unsustainable situation for men's professional golf.
Speaking ahead of this week's Abu Dhabi Championship, the six-time Major winner backed criticism from DP World Tour chief executive Guy Kinnings that LIV had sought to undermine the established European circuit.
"They took players; they took sponsors; they turned professional golf into an arms race," McIlroy said. "They were going around Augusta saying they wanted to destroy the European Tour. Yeah, I agree with everything."
The 37-year-old believes the withdrawal of Saudi investment was an outcome that should perhaps never have come as a surprise, given the enormous sums being spent without an established commercial return.
"It was always going to be good for a few years until something like this happened, or they realised they weren't going to get any return on investment," he added.
McIlroy also believes the disruption could eventually prove beneficial if it encourages a more sustainable structure across the professional game.
"I think for long-term sustainability for men's professional golf, I think we are in a much better spot," he said.
Describing the LIV era as "a very strange time", McIlroy acknowledged that the breakaway organisation had significantly increased players' earning power but argued that the overall balance of the sport had been damaged.
The implications of the latest financial collapse extend well beyond the boardroom, with players, employees, sponsors and tournament organisers facing considerable uncertainty.
LIV's proposed 2027 revival had reportedly attracted interest from a number of players, but the failure to secure the necessary commitments has left the project without a credible financial foundation.
A bankruptcy court hearing is expected to provide further clarity on the organisation's remaining options, with the possibility of winding down operations and liquidating assets now increasingly prominent.
For McIlroy, the priority should be restoring stability and ensuring that professional golf has a future built on sustainable business practices rather than unprecedented financial subsidies.
The end of LIV Golf would represent a remarkable conclusion to one of the most divisive chapters in the sport's history.