Private equity firm BC Partners is exploring a potential takeover of bankrupt golf league LIV Golf by acquiring a $50m loan from Saudi Arabia’s Public Investment Fund (PIF), as it looks to revive plans for a successor competition, according to a report by the Financial Times.

The proposed acquisition of the debtor-in-possession financing would reportedly give BC Partners greater influence over LIV’s Chapter 11 bankruptcy proceedings and potentially allow it to establish a scaled-back version of the league in 2027. The firm previously proposed investing $300m in a successor competition featuring up to 17 tournaments, but abandoned those plans following disagreements with players and other stakeholders.

BC Partners is also reportedly seeking to preserve approximately $5bn in net operating losses accumulated by LIV since 2021, which could potentially be used to offset taxable profits from future acquisitions. The firm is considering establishing an acquisition vehicle targeting businesses, potentially including sports assets, although the use of such losses is subject to regulatory restrictions.

The discussions remain preliminary, with PIF, which previously owned 98% of LIV Golf, seeking a swift exit from the bankruptcy process. LIV filed for Chapter 11 protection in September after its Saudi backer withdrew funding, and is currently preparing to wind down operations while remaining open to alternative proposals.