Cameron Smith's LIV Golf Future in Jeopardy as League Seeks $433m Bailout

Cameron Smith's LIV Golf team, Ripper GC, may be affected by the league's financial struggles as they seek a $433m bailout.

What happened?

LIV Golf, the breakaway golf league, is facing financial struggles and is seeking a $433m bailout. The league's CEO, Scott O'Neil, is pitching to investors to keep the league alive. O'Neil believes that LIV can stay afloat if they can raise $250m by September 1.

Why it matters for Cameron Smith

Cameron Smith, the Australian athlete, is a member of the LIV Golf team Ripper GC. The team was given equity and control in the team when Smith and his close friend Marc Leishman joined LIV shortly after Smith's triumph at St Andrews in 2022. Smith's future with the league is uncertain as the league's financial struggles may affect the team.

What comes next?

The LIV hierarchy is preparing for the possibility that the league may go under. Players like Jon Rahm and Bryson DeChambeau, who are on enormous contracts, have the incentive to work with O'Neil and his team as they will not receive another cent from LIV if the league goes under.

Cameron Smith has prepared for the final major of the year by playing practice rounds near his home in Florida. Next year, Smith's preparation will look a little different as the LIV hierarchy is planning to give players equity in the teams instead of their monster, guaranteed contracts.

The plan is to give players control over their personal brands, partnerships, and future earnings potential. This is a significant call for players who are on enormous contracts. Rahm still has multiple years to run on a US$300 million contract, while DeChambeau reportedly was chasing a new deal worth up to US$500m given his contract expires at year's end.

The LIV hierarchy is certainly preparing for the possibility that the league may go under. Bl

This week's Open Championship at Royal Birkdale might be the end of an era. This could be the last time that the world's best male golfers descend on an iconic British links course with LIV Golf still a presence in the sport.

Things have been somewhat quiet on the LIV front of late. As a result of the postponement of their New Orleans event, the breakaway league remarkably failed to host a tournament between the US Open and the Open Championship. That gap in the schedule prompted the likes of Jon Rahm, who in May resolved his dispute with the DP World Tour over unpaid fines and schedule requirement, to play last week's Scottish Open at the Renaissance Club.

Meanwhile, the likes of Australia's Cameron Smith, who does not hold a DP World Tour membership, have prepared for the final major of the year by playing practice rounds near his home in Florida. Next year the 2022 Open champion's preparation will look a little different.

Smith's plight of putting the work in away from the spotlight is reminiscent of what the LIV hierarchy have been up to in recent times. LIV Golf CEO Scott O'Neil has been busy pitching to investors to keep the league alive after Saudi Arabia's Public Investment Fund announced in April that it will not fund LIV beyond the end of this season.

O'Neil's goal is to raise US$300 million ($433 million) by September 1. But the former CEO of the NBA's Philadelphia 76ers, believes LIV can stay afloat if they can conjure up US$250m ($361m). He has told investors that the league will be profitable in three years' time with that investment.

Golf Digest managed to lay their eyes on an investment deck for 'LIV 2.0'. They reported that the plan is to give players equity in the teams instead of their monster, guaranteed contracts. "Most individual commercial rights will be returned to players, giving them greater control over their brands, partnerships, and future earnings potential," the deck stated.

"LIv 2.0 is centred on player ownership, equity participation and long-term value creation-giving players a direct stake in the league's success." Players having control over their personal brands has been a key cog of LIV's business since its inception. Bryson DeChambeau's YouTube channel famously went bananas after his move to LIV allowed him to become a social media behemoth given the PGA Tour kept control over all its members' content.

Smith and his close friend Marc Leishman were handed equity and control in their all-Australian team Ripper GC when they joined LIV shortly after the Queenslander's triumph at St Andrews in 2022. The players buying in to that proposal would be a significant call given they are on enormous contracts. Rahm still has multiple years to run on a US$300 million, while earlier this year DeChambeau reportedly was chasing a new deal worth up to US$500m given his contract expires at year's end.

But the players have the incentive to work with O'Neil and his team as if they will not receive another cent from LIV if the league goes under. The LIV hierarchy are certainly preparing for that possibility.