In a bankruptcy filing that lays bare the ownership structure of LIV Golf, a seemingly negligible equity stake has taken on outsized significance. Court documents list an unnamed current player holding 0.23% of the league, a figure that Sportico, citing a person familiar with the matter, attributes to Phil Mickelson. While the filing itself does not name the golfer, the disclosure provides a rare glimpse into the ownership hierarchy of the Saudi-backed circuit as it navigates Chapter 11 proceedings.
The ownership breakdown, detailed in the filing, shows the Saudi Public Investment Fund (PIF) with a commanding 98.48% stake, while PIF-controlled Performance54 Group holds an additional 1.05%. Former LIV CEO Greg Norman and the unnamed player each hold 0.23%, with the figures totaling 99.99% due to rounding. This concentration of ownership underscores the PIF's overwhelming influence over the league's operations and financial future.
LIV Golf filed for Chapter 11 bankruptcy in New Jersey on September 8, reporting estimated assets between $100 million and $500 million, and liabilities ranging from $500 million to $1 billion, according to the Associated Press. These ranges indicate that the old common equity sits far behind secured claims and other obligations, leaving no defensible positive value for the 0.23% holding or any other existing equity stake.
The proposed recapitalization plan sharpens the picture. LIV Golf's official restructuring announcement reveals a support agreement with BC Partners Credit, with the league aiming to emerge in early 2027 with players owning a majority stake. The transaction remains subject to court and stakeholder approval. According to reporting on the term sheet, PIF's existing equity and debt would be canceled without any economic distribution, leaving Mickelson's reported stake with no recovery.
While participating players are expected to receive 52.5% of the reorganized company, this new equity is tied to new agreements and does not imply that the existing 0.23% interest survives. The restructuring represents a fundamental reset of the league's ownership and compensation structure.
New financing comes with a significantly scaled-down operating plan. PIF has agreed to provide $49.6 million in debtor-in-possession financing, pending court approval. BC Partners and other potential minority investors would fund the business upon emergence from bankruptcy, with a court filing described by Axios putting the BC Partners proposal at $300 million, contingent on LIV's survival through the case.
This marks a dramatic shift from PIF's roughly $5 billion investment since 2021. LIV is seeking court permission to reject existing player contracts, including those with Mickelson, Jon Rahm, and Bryson DeChambeau. The league argues that current contracts are incompatible with the compensation structure planned for "LIV 2.0," and hopes to negotiate new agreements.
Players also hold creditor status in the bankruptcy. Fourteen of the 30 largest unsecured claims listed in the filing belong to players, with Rahm's nearly $7.5 million claim being the largest among them. The listed claims may not represent the full amounts each player asserts they are owed.
The strongest argument for the restructuring is that it may preserve an operating league that would otherwise run out of money. A player-owned structure could reduce fixed guarantees and better align compensation with revenue. However, it could also make recruitment more challenging if star players prefer cash and PGA Tour eligibility over speculative equity.
For investors and creditors, the next critical valuation evidence will come from the reorganization plan, the disclosure statement, and signed player commitments. Until those documents establish the new capitalization and creditor recoveries, Mickelson's reported 0.23% stake is best viewed as a historical record of the old league's incentive structure rather than a marketable asset with a measurable payout.
