LIV Golf declares bankruptcy owing Louisiana $1.2M for canceled event

LIV Golf still owes the state of Louisiana $1.2 million after canceling a golf tournament that was supposed to take place in New Orleans in June.

The state of Louisiana is listed as the 20th largest creditor in paperwork LIV Golf filed Tuesday as part of its request for Chapter 11 bankruptcy protection in a New Jersey federal court. Several pro golfers are among those owed the most money, but Louisiana is the only government entity listed among creditors with the largest unsecured claims.

“LIV has formally acknowledged that they owe the state the money. The issue is now in the hands of the bankruptcy court,” Emma Wagner, a spokesperson for Louisiana Economic Development, wrote in a text message Wednesday.

The state was expected to spend $7.2 million to bring LIV Golf to the Bayou Oaks at City Park golf course in late June. The event was indefinitely postponed in late April after news broke that LIV Golf’s Saudi Arabian backers were pulling their funding from the professional tour.

Louisiana’s incentive package included $2.2 million in funding to upgrade the golf course for the event and a $5 million “hosting fee” for LIV Golf.

The upgrades that were planned at the New Orleans course still moved forward, with improvements made at its driving range and to tee boxes for two holes, according to Jacob Peters, executive director of the Bayou District Foundation, which operates the golf course.

The $1.2 million LIV Golf owes Louisiana represents the portion of the $5 million hosting fee the state had given to the tour before it called off the New Orleans tournament. The money was supposed to be refunded if the event never happened, according to the state’s arrangement with LIV Golf.

The organization’s decision to file for Chapter 11 bankruptcy protection makes the possibility of full repayment to its creditors far less certain, according to The New York Times. 

Gov. Jeff Landry unveiled initial plans for LIV Golf’s New Orleans tour stop in August 2025 with much fanfare. The announcement at City Park included a DJ, brass band, pyrotechnics and a pro wrestling-style hype man. 

Bubba Watson, a Pensacola, Florida, native who was one of the biggest stars on the LIV Golf tour was also on hand for the kickoff party with Landry last year. The bankruptcy court documents filed in New Jersey show LIV Golf now owes Watson at least $3.3 million.

Louisiana’s decision to spend money on the LIV Golf tournament was controversial from the outset. At the time, the tour’s largest backer was Saudi Arabia’s Public Investment Fund, one of the richest sovereign wealth funds in the world with nearly $1 trillion in assets. Critics wondered why Louisiana needed to give $5 million to an organization with so many resources at the time. 

Saudi Prime Minister and Crown Prince Mohammed bin Salman, who oversees the fund, has been accused of human rights abuses.

The $7.2 million incentive for LIV Golf came from Louisiana’s major events funds, which has also been used to lure the Super Bowl, Essence Festival and NCAA Men’s Final Four to the state.