In a recent Bloomberg Law article, Thompson Coburn partner Joseph Orbach discussed LIV Golf’s proposed bankruptcy restructuring and its LIV 2.0 plan. Court records show players would receive a 52.5% common equity stake in the reorganized holding company and an average 30% ownership interest in team franchises in exchange for their guaranteed contracts.
“They’re doing it to try to give this business as soft a landing as possible and, in the context of that, get a release,” said Joe.
Joe noted the equity structure is intended to encourage player participation, though players would still require individually negotiated cash compensation.
Read the full article here.
In a Law360 article, Joe shared insights on LIV Golf’s effort to secure player participation in LIV 2.0 as part of a potential deal with BC Partners. He explained that the restructuring could help satisfy player obligations while preserving the league’s net operating losses (NOLs).
“You get the double bang for the buck,” Joe said of LIV’s proposed restructuring. “You satisfy what the players are owed, if they agree to this deal, and you preserve the NOLs at the same time.”
Joe also noted that player ownership is a key feature of the proposed model.
“The players would have skin in the game,” said Joe. “As opposed to getting paid the exorbitant amounts that were required to pry them from the PGA, they’re going to be paid more reasonable amounts knowing they have ownership in the upside if the league succeeds.”
Read the full article here.
