LIV Golf faces liquidation after BC Partners scraps rescue plan

LIV Golf, a breakaway professional golf tour, is staring at liquidation after BC Partners, a private equity firm, abandoned a proposed $300 million rescue plan. The decision was reportedly due to insufficient player commitments, which is a critical component of the tour's viability. This development raises questions about the sustainability of LIV Golf, which has been bankrolled by Saudi Arabia's Public Investment Fund (PIF).

The collapse of the rescue plan is a setback for LIV Golf, which has struggled to gain traction since its inception. Despite attracting high-profile golfers with lucrative contracts, the tour has faced criticism from traditional golf bodies and struggled to secure broadcasting rights. The PIF's backing has been seen as a key factor in LIV Golf's ability to operate, but the fund's investment has also drawn scrutiny due to concerns about sports washing and the tour's governance.

Fund investors should watch how this development affects the broader golf industry and the PIF's investment strategy. With LIV Golf's future uncertain, investors will be monitoring the tour's potential liquidation and any potential implications for traditional golf tours, such as the PGA Tour. Additionally, the PIF's next moves in the sports sector will be closely watched, particularly in light of growing scrutiny of its investments in golf and other sports properties.

Originally reported by cnbc.com. FundNews adds analysis for finance & markets readers.