Private credit firm BC Partners Credit has reportedly walked away from a plan to provide up to $300 million in financing to support LIV Golf's relaunch. The decision, first reported by the Financial Times, adds another hurdle for the Saudi-backed league as it tries to restructure under bankruptcy protection.
LIV Golf, which launched in 2022 with backing from Saudi Arabia's Public Investment Fund, positioned itself as a rival to the PGA Tour by offering huge guaranteed contracts to attract top players. But the tour's business model—paying big money upfront while generating revenue from sponsorships and media rights—has proven costly, and the league filed for bankruptcy protection in New Jersey earlier this year.
Why the financing fell through
According to the report, BC Partners pulled back because it faced a deadline to demonstrate that it had lined up enough players for a planned 2027 tournament series. Without that commitment, the lender apparently decided the risk was too high.
Private credit firms like BC Partners typically provide loans to companies that may not qualify for traditional bank financing. These deals often come with higher interest rates and stricter conditions. In this case, the financing was meant to help LIV Golf keep operating and eventually exit bankruptcy, but the uncertainty around player participation appears to have been a deal-breaker.
The news is a setback for LIV Golf, which needs fresh capital to fund its operations while it works through the bankruptcy process. The league has been in talks with various investors and partners, but securing financing has been challenging given its financial losses and the legal battles with the PGA Tour.
What this means for investors
For everyday investors, this story is a reminder that private credit—a fast-growing corner of the finance world—carries real risks. Private credit funds lend to companies that are often in distress or have limited access to public markets. While these loans can offer attractive yields, they also come with higher default risk, especially when the borrower is in bankruptcy.
BC Partners' decision to walk away suggests that even sophisticated lenders are wary of the risks involved in backing a sports league with an unproven business model. It also highlights the broader challenges facing LIV Golf, which has struggled to become profitable despite its deep-pocketed backers.
For those following the sports business, this development could signal that LIV Golf's restructuring will be more difficult than initially hoped. The league may need to find alternative financing or restructure its operations more aggressively to emerge from bankruptcy.
Broader context
LIV Golf's troubles come amid a broader shakeout in the sports investment world. While some leagues and teams have seen valuations soar, others have found it harder to generate sustainable revenue. The PGA Tour, for its part, has also been exploring new investment deals, including a potential partnership with Saudi Arabia's sovereign wealth fund, which has created its own set of controversies.
For investors, the key takeaway is that sports franchises and leagues are not immune to financial distress. Even with wealthy backers, they can face the same challenges as any other business—high costs, uncertain revenue, and the need for constant capital.
As LIV Golf navigates its bankruptcy, the outcome will be closely watched by those in the sports and finance worlds. The league's ability to secure financing and retain players will determine whether it can survive as a viable competitor to the PGA Tour or whether it will be forced to scale back its ambitions.
For now, the collapse of the BC Partners deal is a cautionary tale about the limits of private credit and the difficulties of turning a high-profile sports venture into a sustainable business.
