Dustin Johnson leads LIV Golf players seeking PIF severance

Dustin Johnson Leads LIV Golf Players Seeking Over $100 Million in Severance From Saudi Arabia’s PIF

Dustin Johnson is rallying a group of more than 10 LIV Golf players to demand more than $100 million in severance payouts from Saudi Arabia’s Public Investment Fund, according to a report by The Athletic. The faction, which includes Bubba Watson and Thomas Detry, is negotiating for financial settlements to cover unpaid contracts from the league’s original iteration before deciding whether to sign agreements with the new backer, BC Partners Credit, for LIV 2.0.

Contract Demands and the BC Partners Credit Agreement

None of the players in the Johnson-led group are expected to sign the current restructuring agreement between LIV Golf and BC Partners Credit in its present form. BC Partners formally agreed to provide $300 million in loans and investments for the circuit if enough players committed to the next version. David Cornwell, a lawyer representing Johnson and the players, stated that his clients made career-altering decisions based on repeated promises from the PIF when joining the breakaway league. “Given their reliance on these promises, our group seeks a sensible severance payment as part of the wind-up of LIV,” Cornwell told The Athletic, adding that the fund’s management of the original operation will dictate whether players release potential claims.

Contrasting Financial Positions and the Bankruptcy Proceedings

The dispute hinges on a stark contrast between what players claim they are owed and what the sovereign wealth fund has offered. A source briefed on the matter told The Athletic that the PIF initially offered settlements worth just two cents for every dollar owed under the original contracts. The PIF views itself strictly as an equity investor that is no longer investing in the league and maintains that it is not involved in any conversations with players or their legal counsel, per The Athletic. Adding further financial scrutiny, executive retention bonuses totaled more than $15.6 million in the weeks before LIV filed for Chapter 11 bankruptcy protection in September. Players account for a significant proportion of the league’s unsecured creditors, with seven of the 10 largest unsecured creditors and 14 of the 30 biggest being golfers.

Growing Exodus and Restructuring Deadlines

The severance negotiations arrive alongside a broader exodus of talent from the breakaway circuit. Jon Rahm, Tyrrell Hatton, and Ian Poulter have already announced they will not compete in LIV 2.0. While players faced a commitment deadline on Sunday, October 25, sources indicate that BC Partners could push that deadline back as negotiations continue and the league attempts to restructure ahead of future competition. Bryson DeChambeau leads a separate cohort of players involved in the bankruptcy proceedings, though his group is operating independently from Johnson and Cornwell.