LIV Golf is facing potential liquidation following reports that BC Partners Credit has abandoned plans to finance a relaunch of the breakaway league. The investment firm had initially pledged up to $300 million to support a reorganized version known as LIV 2.0, but withdrew the proposal after the league failed to secure enough player commitments, according to the Associated Press.

The league is scheduled to appear in U.S. bankruptcy court on Thursday, where the hearing is now expected to focus on the liquidation of its assets, though its ultimate fate remains unclear. LIV originally filed for Chapter 11 bankruptcy protection in September after Saudi Arabia's Public Investment Fund (PIF) announced it would cease funding the league following the 2026 season. The PIF had invested more than $5 billion since LIV launched in 2022.

BC Partners' proposed relaunch aimed to make players majority owners of the reorganized league while featuring a scaled-back schedule. However, the initiative struggled as LIV lost several prominent figures during its search for commitments. Jon Rahm stated that uncertainty regarding the league's future and proposed format changes influenced his decision to leave, noting that the revamped competition appeared to move away from the team format that initially attracted him.

Sergio Garcia, who secured a release from his contract in October, has outlined plans to return to the DP World Tour and explore a possible return to the PGA Tour. According to Golf Digest, only four players had publicly committed to LIV 2.0: Richard Bland, Cameron Tringale, Brendan Steele, and Ben Campbell.

LIV launched in 2022 as a challenger to the PGA Tour, recruiting stars like Phil Mickelson, Dustin Johnson, and Bryson DeChambeau with lucrative contracts. Its arrival split men's professional golf, leading to suspensions by the PGA Tour and subsequent legal battles between the rival organizations. Although a framework agreement was reached in June 2023 between the PGA Tour, DP World Tour, and PIF to end litigation and combine commercial businesses, the deal was never completed.

Sources: CNBC Markets.