Key Takeaways
- • BC Partners is exploring a takeover of bankrupt LIV Golf by acquiring a $50m debtor-in-possession loan from Saudi Arabia's Public Investment Fund (PIF), according to a Financial Times report.
- • The DIP financing position would give BC Partners greater influence over LIV's Chapter 11 proceedings and could enable a scaled-back successor league in 2027.
- • BC Partners is reportedly seeking to preserve approximately $5bn in net operating losses LIV has accumulated since 2021, which could offset taxable profits from future acquisitions, subject to regulatory restrictions.
- • The firm previously proposed a $300m successor competition of up to 17 tournaments but abandoned it after disagreements with players and other stakeholders.
- • Discussions remain preliminary; PIF, which previously owned 98% of LIV Golf, is seeking a swift exit, and LIV is preparing to wind down operations while open to alternative proposals.
Summary
Private equity firm BC Partners is exploring a potential takeover of LIV Golf, the bankrupt golf league, by acquiring a $50m loan from Saudi Arabia's Public Investment Fund (PIF), according to a report by the Financial Times. The proposed purchase of the debtor-in-possession (DIP) financing would reportedly give BC Partners greater influence over LIV's Chapter 11 bankruptcy proceedings and potentially allow it to establish a scaled-back version of the league in 2027.
The move marks a revival of the firm's ambitions for a successor competition. BC Partners had previously proposed investing $300m in a successor competition featuring up to 17 tournaments, but abandoned those plans following disagreements with players and other stakeholders.
BC Partners is also reportedly seeking to preserve approximately $5bn in net operating losses (NOLs) accumulated by LIV since 2021. These losses could potentially be used to offset taxable profits from future acquisitions. The firm is considering an acquisition vehicle targeting businesses, potentially including sports assets, although the use of such losses is subject to regulatory restrictions.
The discussions remain preliminary. PIF, which previously owned 98% of LIV Golf, is seeking a swift exit from the bankruptcy process. LIV filed for Chapter 11 protection in September after its Saudi backer withdrew funding, and is currently preparing to wind down operations while remaining open to alternative proposals.
The move marks a revival of the firm's ambitions for a successor competition. BC Partners had previously proposed investing $300m in a successor competition featuring up to 17 tournaments, but abandoned those plans following disagreements with players and other stakeholders.
BC Partners is also reportedly seeking to preserve approximately $5bn in net operating losses (NOLs) accumulated by LIV since 2021. These losses could potentially be used to offset taxable profits from future acquisitions. The firm is considering an acquisition vehicle targeting businesses, potentially including sports assets, although the use of such losses is subject to regulatory restrictions.
The discussions remain preliminary. PIF, which previously owned 98% of LIV Golf, is seeking a swift exit from the bankruptcy process. LIV filed for Chapter 11 protection in September after its Saudi backer withdrew funding, and is currently preparing to wind down operations while remaining open to alternative proposals.
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