By Frank Pingue
Oct 14 (Reuters) – An attorney for LIV Golf told a US federal bankruptcy court judge on Wednesday that a decision on whether the rebel circuit winds down operations or moves forward with a proposed 2.0 model will be made by the end of this month.
During the hearing, the attorney made the court aware of the circuit’s concerns regarding a recent ultimatum issued by DP World Tour CEO Guy Kinnings this week to any players contemplating a future with LIV 2.0.
Kinnings said players will not be allowed to compete on both LIV 2.0 and the European circuit next season and must make a choice as the DP World Tour will no longer allow certain players to compete on a limited basis.
“We’re continuing to monitor this situation very closely and we’re quite concerned by it frankly,” attorney Rob Fitzgerald told the court. “We’re reserving all rights and remedies in respect to these statements that are made.
“Frankly, the timing in particular strikes us as a clear attempt to interfere with our process with our players and potentially our reorganization writ large.
“It also raises a lot of the same anti-competitive concerns that LIV has expressed previously regarding the way competing leagues have sought to box out and punish market participants, namely these players, from participating in LIV and really only LIV.”
Judge Michael Kaplan acknowledged that the comments from Kinnings did raise concerns and asked to be informed of any updates regarding the matter.
When asked by Reuters about Fitzgerald’s remarks, the DP World Tour said it had no additional comment beyond what Kinnings said in a statement on Monday.
“Players need to make a choice,” Kinnings said in the statement. “As we have said for many years, we have rules and regulations which are there to protect our Tour and which our members must all abide by. Players who are not willing to comply with our rules and regulations should not be seeking to join our Tour.”
RAHM TO QUIT LIV
The hearing came one week after an attorney for former world number one Jon Rahm told the court that his client independently reviewed the proposed terms of LIV 2.0 and decided to quit LIV Golf, robbing the circuit of one of its biggest names.
Kaplan also approved the amended restructuring support agreement between LIV Golf and BC Partners, which allows the rebel circuit to rehire staff and start planning initiatives for its next iteration.
The decision on how many players constitute a league and which players need to be included rests with BC Partners.
Kaplan approved the amended agreement in which BC Partners would provide as much as $300 million in financing to LIV Golf, including an initial $4 million.
“This is an important first step in order to really identify viable paths for the debtor, either through continuing operations or a wind-down,” Kaplan said.
(Reporting by Frank Pingue in Toronto, editing by Ed Osmond)
Comments