Rory McIlroy has delivered a damning assessment of LIV Golf's strategy, describing the Saudi-backed breakaway as "half a good idea that was executed pretty poorly" as the circuit attempts to rebuild following its Chapter 11 bankruptcy filing.
Speaking at the Bloomberg New Economy forum in New Delhi, where he is competing in the DP World India Championship, McIlroy reflected on the venture that saw the Public Investment Fund (PIF) inject £3.7bn over four years to lure elite players including Jon Rahm and Bryson DeChambeau away from the PGA Tour before withdrawing support this year.
They had a lot of capital but I think a lot of that capital was wasted in some ways and I think they could have used that money a lot more strategically and could have partnered with some of the governing bodies of the game and certainly could have done better things with it instead of just enriching tour pros who were already making a lot of money.
The restructuring process has accelerated following recent developments. A bankruptcy judge approved LIV Golf's restructuring support agreement with BC Partners on October 14, authorising the rejection of certain player contracts and paving the way for a potential $300m (£227m) investment from the private equity firm, contingent on a specified number of players re-signing for the new venture.
The landscape has shifted dramatically since LIV's launch. Jon Rahm has already confirmed he will not continue with the league, and a significant blow arrived this week when the DP World Tour announced that any player signing up for LIV will be barred from DP World Tour membership and Ryder Cup eligibility.
McIlroy suggested the exodus of players signals the venture's diminishing threat to traditional golf.
BC Partners have come in and seen an opportunity (but) it looks like every day that goes by there's another player that was on LIV who is not going to join LIV 2.0 so I think it is going to be very difficult to get out of this Chapter 11 bankruptcy and go forward.
But if they do it is certainly not going to be a threat to the traditional order of the game as it once was.
Under the proposed ownership structure, players would hold 52.5% of LIV 2.0, BC Partners and minority investors 45%, and management 2.5%, with the agreement also providing for signing bonuses and certain name, image and likeness rights.
The return of LIV defectors
A more pressing concern now centres on the fate of players departing LIV. The PGA Tour imposes a one-year suspension, denying access until August next year, whilst the DP World Tour has tightened its regulations, though its membership remains divided on readmitting defectors.
McIlroy expressed sympathy for both perspectives.
I'm sure some members who stayed loyal would feel hard done by if these guys can just walk straight back in but, on the other side, having these players back on the tour is good for business and it can drive revenues up and everyone can benefit from that.
I would vote for them to come back. A rising tide lifts all boats and I think having some of these players back is beneficial for the business of the tours.
This position contrasts sharply with that of six-time DP World Tour winner Joost Luiten, who views the situation differently.
Four years ago they didn't give a s*** about the DP World Tour. They made a decision to go after the money and now all of a sudden, the money is gone and they want to come back and act like nothing happened. I don't think that's right.
If they think they are that good then show it at Q-School (qualifying school) and beat the guys. That's how every other guy that wants to play on this tour has to go.
McIlroy on the DP World Tour's stance
McIlroy defended the DP World Tour's decision to enforce stricter membership conditions, framing it as a necessary business protection measure.
You can still be a member of the PGA TOUR and the DP World Tour. We as the DP World Tour are a members' organisation, just as the PGA TOUR is the members' organisation. Every year before you play your first event you sign up to abide by the rules and regulations of that members' organisation.
Everyone that plays on those tours does the exact same thing. This isn't new information. Everyone does that every year.
He emphasised that tour leadership has the authority to adapt regulations to protect their interests.
The leadership or the management of those membership organisations, they have the right to change and adapt the rules and regulations where they see fit to protect their business or their rights. This is what the DP World Tour are doing.
McIlroy acknowledged the evolving competitive landscape and the ongoing strategic alliance discussions between the PGA Tour and DP World Tour.
I think with the way the golf landscape is, I know the PGA TOUR and the DP World Tour are working really hard to find a suitable landing to continue with the strategic alliance.
I think the DP World Tour have been more than accommodating to LIV players. Yes, they've had to maybe do some things that have been conditional to their membership, like play a couple extra events this year, but I think this was always coming down the line.
He credited the DP World Tour with making a prudent decision in an unstable environment.
I think the DP World Tour have made a good decision, because the golf landscape, I feel like it's been constantly changing for the last four, five years. It's now got to the point where guys are going to have to make a decision and what's important to them and what they really want to do.
As I said, the DP World Tour are well within their rights to change the rules and regulations. This is the way to protect their business and to make the tour as strong as possible.
What happens next
The restructuring process remains fluid. Players have until October 25 to commit to LIV 2.0, though BC Partners can extend or waive the deadline; the firm will determine whether enough players have committed for the league to continue. The next bankruptcy hearing is scheduled for October 20.
LIV's restructuring plan envisions a smaller 2027 schedule of 10 tournaments, approximately half at international venues, with greater emphasis on team golf. The court heard that a final decision on whether to proceed with LIV 2.0 or wind down operations is expected by the end of October.
