Bankruptcy Court Gets Real
LIV Golf is back in the courtroom, and this time the stakes involve a specific dispute over money owed to Bryson DeChambeau’s agency. In New Jersey, the league sought Chapter 11 protection on Sept. 8 immediately following its 2026 season conclusion in August. While the Saudi Public Investment Fund poured over $5 billion into the project since 2022, they stopped funding after the season ended.
Now, a creditor on the list says the debt isn’t real. DeChambeau’s representative agency, GSE Worldwide, informed Front Office Sports that LIV owes them nothing. Because the league’s filing identifies GSE as one of the 30 biggest unsecured creditors holding a $1,287,500 balance, this denial sparks significant conflict. When a player’s own team says there is no debt, it raises serious questions about the accuracy of the league’s financial numbers.
The financial picture LIV painted in court is staggering. According to the filing, total liabilities sit between $500 million and $1 billion while assets range from $100 million to $500 million. A count by USA Today identified 27 names totaling $64.2 million in owed funds. Jon Rahm is listed at about $7.5 million, while DeChambeau appears at roughly $5.8 million. Dustin Johnson has a claim flagged as contingent, unliquidated, and disputed, sitting at around $5.5 million.
ESPN noted that these totals reflect past-due payments, not what players might still be owed beyond the filing date. The core of the upcoming hearing on Oct. 7 in Trenton involves a motion to “reject or assume executory contracts and unexpired leases.” These are agreements where both sides still owe something, and they cover player deals like Rahm’s. If LIV assumes a contract, they keep honoring it. Should they reject a contract, it counts as breached, placing the player among the creditors. Reportedly, those contracts constitute a significant portion of the estimated liabilities.
The situation is precarious for the league. LIV entered bankruptcy with only $15 million on hand. During the initial Sept. 9 hearing, Judge Michael Kaplan authorized access to $14 million from a PIF loan nearing $50 million. BC Partners, a private equity firm ready to inject $300 million into LIV post-bankruptcy, determines if fresh money arrives.
However, experts are skeptical. Houston-based attorney John J. Sparacino told Front Office Sports, “I think there’s a significant risk that it doesn’t come out of Chapter 11.” If they fail, the league could fold entirely. Brian A. Marks, a professor at the University New Haven’s Pompea College of Business, warned FOS, “If they don’t get certain arrangements organized, this bankruptcy can quickly convert to Chapter 7 liquidation.” This would mean a total wind-down of operations rather than a reorganization. The dispute with GSE Worldwide highlights how messy the debt structure has become, with some parties claiming they were never paid while others say they are owed millions.
For fans watching the tour, this legal battle signals a potential end to the current LIV model. The league cannot survive if it cannot prove its debts or secure new financing. The dispute over the $1.2 million claim to GSE Worldwide is just the tip of the iceberg. If the court finds that the liabilities are inflated or disputed by the very people owed the money, it undermines the entire reorganization plan. The motion to reject or assume contracts is the critical moment.
If LIV rejects the player deals, the players become general creditors. They might never see the full amount owed to them. The league needs BC Partners to step in with the $300 million, but that deal is not guaranteed. The PIF has already stopped funding, and the new investors are waiting to see if the court approves the path forward. Without a clear resolution, the league risks converting to Chapter 7, which means selling off assets to pay creditors and shutting down.
The uncertainty also affects the players who signed big checks. Names like Rahm and DeChambeau are tied up in these contracts. If the league rejects their deals, they lose the security of those agreements. The financial instability creates a ripple effect across the industry. It shows that even with billions in initial investment, the business model struggled to sustain itself once the initial funding stopped.
The court hearing on Oct. 7 will be the next major test. If the judge denies the motion or if the numbers don’t add up, the league could be in serious trouble. Fans should expect more volatility as the court proceedings ramp up. The outcome of this case will determine if LIV Golf continues as a competitive force or becomes a footnote in the history of professional golf.
Next Steps in the Case
The legal process moves quickly now. The next scheduled event is the Oct. 7 hearing in Trenton. This session will address LIV’s motion regarding executory contracts and unexpired leases. Front Office Sports notes that this agenda item covers contracts involving star players such as Jon Rahm.
The court must decide if the league can assume these deals or if they must be rejected. This decision will dictate the future of the player relationships and the league’s ability to continue operations. Until that hearing takes place, the status of the $1.2 million claim and the other debts remains unresolved.
