LIV Golf filed for Chapter 11 bankruptcy protection Tuesday, Sept. 8, in New Jersey, listing more than $500 million in debt. Carlsbad, home to TaylorMade, Callaway and other major golf manufacturers, has a direct stake in the professional golf economy the league helped reshape.

The breakaway league listed between $100 million and $500 million in assets and between $500 million and $1 billion in liabilities, ESPN reported. The filing came months after Saudi Arabia's Public Investment Fund ended its financial support in April.

The PIF had poured more than $5 billion into LIV Golf since its first tournament in June 2022, spending a reported $100 million per month this year, according to ESPN. In April, the sovereign wealth fund said the investment was no longer consistent with its current strategy, as Axios reported.

The city's economic development website calls Carlsbad the "golf equipment capital of the world," listing TaylorMade, Callaway, Titleist, Cobra, Vessel Golf and others as headquartered here. None of those companies had issued public statements on LIV Golf's bankruptcy as of Wednesday, Sept. 9.

LIV Golf laid off the majority of its U.S. and U.K. employees in early September, Sportico reported. The league had been seeking between $250 million and $350 million in outside investment to continue operations beyond 2026.

CEO Scott O'Neil said in a news release that the filing "gives us the structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf."

The bankruptcy proceedings are expected to void existing player contracts, according to Fox News. Court records cited by ESPN show golfer Jon Rahm tops the list of unsecured creditors at nearly $7.5 million in past-due payments. Bryson DeChambeau is owed $5.7 million, Dustin Johnson $5.5 million and Cameron Smith $4.8 million.

Of the top 30 creditors, 14 were players, according to the Associated Press. Four vendors had already filed lawsuits against LIV Golf for unpaid services before the filing.

Under a proposed restructuring dubbed "LIV 2.0," the league plans to expand fields from 57 to 75 players, introduce a 54-hole cut, add Monday qualifiers and reduce to about 10 events per season, according to Golfweek. BC Partners would serve as the primary capital source. The PIF has agreed to provide $49.6 million in debtor-in-possession financing, subject to court approval.

LIV Golf's final 2026 event was held in August in Indianapolis. The season-ending team championship in Michigan was canceled.

LIV Golf said it intends to emerge from bankruptcy and launch the restructured league as early as 2027.