After five years and approximately $5 billion spent, the truest picture of LIV Golf’s financial reality is finally being revealed.As the beleaguered rebel golf tour seeks to survive, it has filed for Chapter 11 bankruptcy in the United States. LIV hopes to use the process to restructure its significant financial obligations and emerge in 2027 as a leaner, eventually profitable company. But court filings Tuesday show the extent to which LIV has blown through the money its financial supporter, the Public Investment Fund of Saudi Arabia, provided since its 2021 inception.To understand how LIV got to this point and what will happen next, a team of The Athletic’s experts break down the complicated case.What made LIV Golf file for bankruptcy protection?The writing was on the wall for the nascent golf tour the moment, in April, that PIF declared it would no longer provide funding beyond 2026.LIV’s short, disruptive lifespan has been accompanied by staggering losses; in three and a half years to the end of 2024, LIV Golf Ltd, the UK-registered entity that oversees the tour’s operations outside the U.S., had racked up $1.1 billion in accumulated losses. By the end of 2025, the figure was near $2 billion.The tour’s total losses are even larger than that.Filings for LIV Golf Investments Ltd, which umbrellas the tour’s various entities, show PIF’s equity commitment between mid-2021 and February 2026 was $5.3 billion. No new money has gone in as shares since a $267 million cash injection seven months ago, tallying with PIF’s decision to cut off funding. PIF has, however, provided LIV with a loan since June, and the outstanding balance three months on sits at $495 million.Even as LIV executives have touted improved commercial deals this year, the tour has never been viable, having agreed to pay out huge sums to lure some of golf’s biggest stars into the fold. Without the backing of the sovereign wealth fund that founded it, LIV’s capacity to meet its commitments – the bankruptcy filing estimates the tour’s liabilities at beyond $500 million – is nowhere close to sufficient. — Chris WeatherspoonWhat does bankruptcy protection mean?LIV's Chapter 11 filing sets in motion a restructuring process, whereby LIV tries to figure out how to meet its outstanding liabilities while remaining in operation. The tour intends to continue into 2027 with the help of new backers BC Partners, a London-based private equity firm. The bankruptcy motion is, per a letter from CEO Scott O’Neil to LIV fans, “designed to build a stronger and more sustainable future for LIV Golf.”LIV intends to restructure itself “under a new and more efficient operating model,” something it has taken to calling ‘LIV 2.0.’ The new model, if it comes to pass, would see LIV’s players own 52.5 percent of the tour, with 45 percent allocated to new investors like BC Partners and the remaining 2.5 percent given over to management.Player contracts are a significant portion of LIV’s liabilities, and entering bankruptcy allows the tour to reject those it sees as unfavourable. In essence, the tour is seeking to rip up the huge contracts it has agreed with its players, arguing they’re no longer practical.Players are free to negotiate new deals under LIV 2.0. It remains an open question how many are interested. — WeatherspoonDid LIV nearly fail to get through the 2026 season?While O’Neil publicly and internally expressed confidence in being funded throughout the season when PIF pulled its funding back in April, documents show a different picture. Instead of continuing to fund LIV through equity as it had since its inception, PIF actually loaned the league money to get it through the season and took on all assets in LIV as collateral. And still, LIV had to cancel two events and stop paying vendors.LIV’s balance on that loan is $495 million. PIF’s willingness to make it could have been strategic. It’s now the highest-ranking creditor and will be paid before anyone else sees a dollar. LIV, in the legal filings, admitted that it could not find another interested third party to fund it through the bankruptcy process since the PIF operated from such a position of strength.A fascinating part of this, though, is that the loan agreement wasn’t signed until June 4, and the declaration says PIF only informed LIV in June that it would lend the money at all.This raises questions about O’Neil’s comments from April to June, since it apparently had no assurances of funds to finish the season until June. — Brody MillerWhat are LIV’s actual assets?According to court documents, LIV is estimating its assets to be worth between $100 million to $500 million. Although LIV has not yet filed a detailed breakdown of its remaining assets — which will come in the near future — the restructuring paperwork gives us an idea of what they are.First, LIV has approximately $3 billion in Net Operating Losses, otherwise known as NOLs, which are tax losses that can be utilized to offset billions of future profits per the U.S. tax code. BC Partners has a history of working with companies with large NOLs: “This is always something I wanted to do,” Ted Goldthorpe, the head of BC Partners’ credit division, once told Axios.(For what it is worth, more than 300 investors were contacted by LIV after the PIF fallout. BC Partners was one of two to submit a non-binding term sheet.)Next, LIV says it has long-term sponsorship deals worth hundreds of millions. It also has smaller committed hosting fees from cities and venues that are paying LIV to bring events to their locations. Other assets referenced include broadcasting agreements, intellectual property and cash on hand. LIV says that it has $15 million in the bank. — Gabby HerzigWhere did all that money go?Combining reporting over the past few years, at least $1.6 billion, if not more, was given in guaranteed contracts to lure players to LIV, including north of $300 million to Jon Rahm, $200 million to Phil Mickelson and $125 million to Bryson DeChambeau. Another $1.36 billion went to the players in the form of prize money and championship bonuses. That means another $2 billion went to tournament operations, broadcast production, concerts and payroll, among other things. — MillerWho is owed money? Will they get it all back?The list is long and a stark illustration of the liabilities that have been run up when partnering with some of golf’s biggest names.The top seven unsecured creditors and 14 of the top 30 are players. Rahm is owed the most — $7.4 million — and is followed by DeChambeau ($5.77 million), Dustin Johnson ($5.49 million), Cameron Smith ($4.84 million) and Adrian Meronk ($4.44 million). Brooks Koepka, who jumped ship to rejoin the PGA Tour this year, is still owed nearly $1.7 million. These figures reflect past-due third-quarter payments to each player, rather than future expected payments based on multiyear contracts.The eye-opening list of creditors also includes media companies, such as IMG, and Rick Shiels, the British YouTuber who partnered with LIV to create content 18 months ago. His media company is owed just under $1.4 million. Also featuring prominently as a creditor is the United Nations High Commissioner for Refugees Diplomatic Quarter in Riyadh, with a grant agreement listed as $1.7 million.The court papers say outstanding debts total between $500 million and $1 billion to between 1,000 and 5,000 creditors and there is uncertainty over how much of that can be recovered.As unsecured creditors, they have no guarantee they will eventually be paid monies due. That will all play out in the bankruptcy process, but the first filings did say that unspecified “funds will be available for distribution to unsecured creditors.” — Philip BuckinghamIs this the end for LIV Golf?Brody MillerCan LIV players now leave for other tours?Technically not yet, but in reality yes.LIV asked the court for the ability to reject player contracts, which would mean the golfers are free to negotiate elsewhere, but the court hasn’t ruled on that motion yet and the contract list is under seal.Until that motion is granted, players risk having their claims wiped out. And for other tours, even dancing with that ambiguity could mean tortious interference, a risk the PGA Tour has made clear it has no interest in taking on.But in practice, sure, the contracts are likely to be rejected, and players will be free to speak with other tours. The bigger question is what options they will have. PGA Tour CEO Brian Rolapp made clear last month that the tour will not offer another sweetheart deal akin to the one it gave Koepka earlier this year. Anyone wanting to return will likely have to face the path Patrick Reed did, serving out a full year’s suspension from the date of the last LIV event (Aug. 23). Reed went to the DP World Tour, an option others are most likely to pursue.“I'm not trying to predict the future but I would predict that you'll see some guys leave, as they are free to now as, I guess, contracts have been breached by them filing for bankruptcy,” Rory McIlroy said Wednesday at the Irish Open. “That means other tours have decisions to make. And obviously there's a lot of players on LIV that can strengthen golf tournaments and make them more competitive. So I would see that as a good thing for the DP World Tour.”A key element to follow: In 2028, the PGA Tour moves to a more exclusive Championship Series and a second-tier Challenger Series model. The tour plans to announce next week how eligibility works for both, and these LIV players will surely want to know what is needed to qualify from the DP World Tour directly onto the Championship Series. — MillerWhat are players and executives saying?Rahm has been the quiet dark horse in all of this, and his comments to the BBC on Tuesday only add to his strategic position.“There’s just a lot of things in place, right?” Rahm said. “There’s a lot of things that could happen and it’s one of those things where time’s going to tell.”Former world No. 1 Lee Westwood said to TalkSport: “My plan is to have a good look at LIV 2.0 and make a decision after that. I enjoy playing on LIV. So if it continued the team aspect and 10 tournaments a year, which is great for me as I've got older, I'm 53 now, and mixing it up with playing on possibly the DP World Tour and the Legends Tour.”Most others haven’t spoken publicly, but some have said plenty with their actions.Five players have already signed up for DP World Tour qualifying school. Josele Ballester and Luis Masaveu advanced through last week, while Peter Uihlein didn’t show up for his third-round tee time as he sat out of contention. Michael La Sasso and Yosuke Asaji are competing in Q School this week in Germany. Others already have DP World Tour status. — MillerLIV CEO Scott O'Neil, left, is trying to convince Talor Gooch and others to stay with LIV. (Octavio Passos / Getty Images)How does LIV plan to restructure?Operations have been scaled back, all with one eye on relaunching as LIV 2.0 in time for the 2027 season.O’Neil announced a signed term sheet with a lead investor on Aug. 5, which The Athletic and others soon reported to be BC Partners. That partnership has yet to be finalized, and the parties have 30 days from Tuesday to lock in the reorganization plan.LIV’s plan to maintain its player roster hinges on equity in the new company, with a majority (52.5 percent) to be owned by the players. BC Partners and unnamed co-investors would be entitled to 45 percent, with the rest reserved for management.LIV also announced its intention to compete across five continents in 2027, expand fields to 75 players, and introduce a cut and Monday qualifiers. “Transitions are rarely easy but they are powerful when you know where you are going,” O’Neil wrote in a letter to fans. “And we do.” — BuckinghamWhat does this mean for PIF’s other sports investments, such as Newcastle United?Very little, it would seem. PIF has publicly explained that stepping back from LIV was because it was “no longer consistent with the current phase of PIF’s investment strategy.” Roughly translated, they had grown tired of losing billions on a project entirely dependent on their wealth.The statement confirming their exit, though, did include reassurances for others. “PIF remains committed to deploying capital internationally in line with its investment strategy, including its substantial current and future investments in various sports,” it read.There is certainly a sense among fans that the Saudi ownership’s interest in the club is not what it was. Transfer spending has declined since those early days, partly as a result of the club having to comply with tough financial regulations set by the Premier League and UEFA, European football’s governing body. The club has sold some of its biggest playing assets over the last 12 months. Set against that, however, are the plans signed off by the ownership for a new £190million training ground.Newcastle United certainly consider it business as usual. The purchase of a Premier League club in 2021 has come to look like a sound investment, and there is little obvious sense that PIF wishes to back out of St James’ Park.“I talk to our owners multiple times a day,” chief executive David Hopkinson told The Athletic in August. “They are the most leaned-in owners I’ve ever worked with… There’s no one that wants to see Newcastle 2.0 (the term Hopkinson uses as the club’s next phase) succeed more than they do.”PIF’s primary onus is now on bringing major events to Saudi, including boxing, tennis, F1 and, the mother of all sporting shows, the men’s World Cup finals in 2034. Those each require huge funding, but with the promise of a long-term yield that LIV Golf could not. — Buckingham