LIV Golf secures funding and looks to Trump for help relaunching bankrupt competition
LIV Golf chiefs are hoping for help from US President Donald Trump as they look to relaunch the league without the backing of Saudi Arabia’s Public Investment Fund.
The bankrupt team golf competition, home to stars Bryson DeChambeau and Jon Rahm, has secured funding from BC Partners and says it is in talks with more investors.
It is also keen to keep playing at golf courses in Trump’s portfolio, having held eight events in three years at Doral, Bedminster and Washington DC.
“The Trump organisation has been tremendously supportive of LIV Golf,” CEO Scott O’Neil told the Sportico Invest London conference.
“We played two events [sic] at their courses, Bedminster and then DC, and we look forward to continuing to be partnering with them.”
Players including DeChambeau, Rahm and Cameron Smith have been offered equity in the new business and given until 25 October to pledge their continued allegiance.
BC Partners head of credit Ted Goldthorpe said more co-investors would be announced soon as LIV Golf targets up to $300m in financing.
“We’re not in it by ourselves. We want to bring in partners, and it’s incredible the people who are reaching out to us,” he said.
“It’s led to some very interesting dialogue, but also very value-added partners. They’re not just financial partners; they’re people who can help us with entertainment, with media.”
BC Partners: Tax break is bonus, not reason for investing
Goldthorpe also insisted that BC Partners had not invested in LIV Golf because its $3bn net operating losses (NOLs) would offer tax breaks to its wider business.
“I mean, there’s a big NOL in the US and in the UK but that’s not the driving force behind the investment,” he said. “I think some of this has been misconstrued. We’re all in on LIV and we’re very committed to it. And the tax stuff is just an added benefit.”
LIV Golf previously targeted valuations for its teams of $1bn but O’Neil said that, post-PIF, they believed $100m valuations would quickly be achievable.
“TGL is selling sim golf teams for $80m, so we have quite a level of confidence that these teams will be up on their feet and very valuable,” he added.