LIV Golf is struggling. With Jon Rahm and Sergio Garcia gone, and multiple players dead set on leaving the league, and zero commitment to “LIV 2.0,” DeChambeau and his team find themselves negotiating terms and conditions with not just his but other players’ futures at stake, too.
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Sergio Garcia made it clear he did not want to stay any longer, though he has confessed there’s much left to be done. Meanwhile, after Jon Rahm’s representatives said that the two-time major champ will not return for the much-touted “LIV 2.0,” the remaining players raised questions about their own future. A report by the Financial Times indicates they have got a way to find answers.
According to the report, the lawyers representing Bryson DeChambeau are looking to organize a player-led group to negotiate terms. This committee, led by the players only, will be represented by the American multinational law firm Weil, Gotshal & Manges. However, there’s one thing to note.
This player-led committee is different from the official creditors committee. Thus, though the committee would represent the players and seek or negotiate terms on behalf of the players, and in front of LIV and BC Partners, the court will announce a separate decision. BC Partners is the league’s newest investor, putting in nearly $300M into the financially struggling LIV.
It is true that DeChambeau has constantly shown interest in staying with LIV, including confessing that he is willing to make it work until the last moment. In April, for instance, he stated, “…as of right now, my job is to help make the league work after this year. I just feel like I have a responsibility. I’ve put a lot of effort into it… We’re going to make this work.” But things have clearly changed since.
For instance, one of its most promising stars, Michael La Sasso, is not only looking for ways to kickstart his career at DP World Tour’s Q-School, but he is also the only golfer on the committee of unsecured creditors. The other members are said to be trade vendors who provided services to the league but did not receive payment for them. It is expected that the number is as high as $100M, the report from Financial Times says.
Now, why is all of this information so essential?
First and foremost, a representative of the league’s former investor, the Public Investment Fund (PIF), claims no player has committed to “LIV 2.0.” Secondly, if the terms and conditions do not favor the players’ interests, expect another mass exodus from the league.
Reports indicate LIV owes $400M in outstanding payments to golfers, the bulk of which is owed to DeChambeau and Rahm. Now with big players like Rahm and Garcia out of the picture, the only remaining player who can (and does) drive engagement is DeChambeau.
DeChambeau is the only star left at LIV, and is literally the only one who can encourage others to stay. That’s why he has immense power in the ongoing case. If he remains and plays the scheduled 10 LIV tournaments next season, it will give him plenty of a chance to manage both his career and YouTube. Plus, if you’d like to consider, it will also save him from the embarrassment of returning to the PGA Tour. In fact, reports indicate DeChambeau is looking to play on the DP World Tour.
That’s why the terms matter. Though Rahm has already rejected the preliminary terms, the conditions indicate that the LIV players have an opportunity to own a majority of the equity in the league. This is supposed to serve as a settlement for their existing claims against LIV. Those who decide to stay can earn extra payouts. That is the idea.
The problem is… most LIV pros aren’t buying it. Joaquin Niemann has shared that he is willing to return to the PGA Tour if given an opportunity. Adrian Meronk and David Puig have already made their decisions; older players like Richard Bland are growing restless about the few opportunities.
The players find better value at the PGA Tour, which not only guarantees easy access to the Official World Golf Rankings, but also the majors. The same goes for the DP World Tour. But what about LIV?
And what’s next?
As of now, nothing except hoping that injecting money will revive the league and reassure the players. Honestly, the league is doing plenty to make that work. As per the Financial Times report, the league reached an agreement with PIF and BC Partners. BC Partners will put $4 million toward the $50 million bankruptcy loan PIF had previously provided.
PIF has allegedly warned that the court will seek to close the case if the new proposal isn’t finalized by the end of the month. It must secure agreements with a sufficient number of them by October 25. That means the firm has little time to line up enough players to relaunch LIV. There are promises, however.
See, BC Partners’ executive Ted Goldthorpe stated that the team franchises could be worth $100M or more. “They can create real wealth at the team level and the holding company level, and they still play for prize money and make good money. To the extent we can make the league sustainable, they will create real wealth on these teams.” The league and the firm will have to try harder.
Meanwhile, the report also indicates that during the Wednesday hearing–where Rahm’s team announced his intentions–multiple players have sought formal termination, just like Garcia. What will happen after that? We are sure LIV has thought of that more than we have.