LIV Golf has filed for bankruptcy protection as it attempts to restructure following Saudi Arabia’s decision to withdraw its multibillion-dollar funding.

It’s understood the move renders void all player contracts signed with LIV 1.0 and leaves stars like Jon Rahm and Bryson DeChambeau as well as Tom McKibbin and Graeme McDowell free to seek other playing options.

When asked about seeking a pathway back to the PGA Tour at the Amgen Irish Open on Tuesday, Rahm said: “Well, I still have a contract with LIV 1.0 at this point that I’m more than willing to fulfil.”

He would not have a contract under LIV 2.0, it appears.

A Chapter 11 petition was filed on Tuesday in the US Bankruptcy Court for the District of New Jersey, which LIV says is intended to “preserve the company’s business” as a going concern.

The breakaway league has secured a new investor in BC Partners following the April decision by Saudi Arabia’s Public Investment Fund (PIF) to pull its financial backing.

Under the proposed restructuring, LIV Golf intends to launch a new majority player-owned league early next year.

“The people of LIV Golf, led by the players, have continued to show incredible resilience, commitment, and a shared belief in what we are building,” said LIV Golf CEO Scott O’Neil.

“This process gives us the structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf — one built around the fans, an innovative, player-first ownership model, and a part of the global golf ecosystem.”

It’s understood that players have no obligation to sign up for LIV 2.0, and it appears likely that contracts under the previous iteration of LIV Golf will effectively be terminated.

The sums owed to players and other creditors will have to be addressed through the court process.

PIF has agreed to provide $49.6m in debtor-in-possession financing subject to court approval.

Upon emergence from Chapter 11, BC Partners Credit and other potential minority investors are expected to provide exit financing and then capitalise the reorganised company.

“We reviewed all available options and believe today’s actions reflect the most responsible path forward for the League and its stakeholders,” said Gene Davis, chairman of the board’s special committee.

The company is also seeking recognition of the US Chapter 11 proceedings in England and Wales to preserve the value of its international assets and operations.

LIV Golf intends to emerge from bankruptcy and begin its new era in early 2027, but it appears likely it will have to do so without Rahm.

McKibbin had two or three years of his contract remaining.