LIV Golf could be headed for liquidation after BC Partners Credit reportedly dropped plans to finance a relaunch of the breakaway league.
The investment firm had pledged up to $300 million for a revamped version of LIV, known as LIV 2.0, but withdrew the plan after LIV Golf failed to secure enough player commitments, according to the Associated Press.
LIV is scheduled to appear in U.S. bankruptcy court Thursday, with the hearing now expected to focus on liquidation of its assets. The league's ultimate fate remains unclear.
LIV Golf and BC Partners did not immediately respond to CNBC's requests for comment.
LIV filed for Chapter 11 bankruptcy protection in September after Saudi Arabia's Public Investment Fund said it would stop funding the league after the 2026 season.
PIF had invested more than $5 billion since LIV launched in 2022, according to its Chapter 11 filing.
BC Partners' proposed relaunch would have made players majority owners of the reorganized league and featured a scaled-back schedule.
But LIV has lost several prominent players, including Jon Rahm and Sergio Garcia, as it sought commitments for the new venture.
Rahm said Tuesday that uncertainty over the league's future and proposed changes to its format influenced his decision to leave.
"There were too many unknowns at the time, and there's still quite a few," he told reporters ahead of the Abu Dhabi Championship. Rahm added that the revamped competition appeared to be moving away from the team format that initially attracted him.
Garcia, who secured a release from his LIV contract in October, has outlined plans to return to the DP World Tour and explore a possible return to the PGA Tour.
Only four players had publicly committed to LIV 2.0: Richard Bland, Cameron Tringale, Brendan Steele and Ben Campbell, according to Golf Digest.
LIV launched in 2022 as a challenger to the PGA Tour, recruiting prominent players including Phil Mickelson, Dustin Johnson and Bryson DeChambeau with lucrative contracts.
Its arrival split men's professional golf, with the PGA Tour suspending members who competed in LIV events. The disputes later spilled into the courts, with players challenging suspensions and the rival organizations pursuing competing legal claims.
The PGA Tour denied the allegations , while LIV dismissed the counterclaims.
A June 2023 framework agreement between the PGA Tour, DP World Tour and PIF ended their litigation and proposed combining their commercial businesses, although the deal was never completed.
