LIV Golf has confirmed its intention to wind down operations because of a lack of financial support.

The controversial league, previously funded by Saudi Arabia’s Public Investment Fund (PIF), had hoped to continue in a new form, dubbed LIV 2.0, under new investors.

But LIV’s lawyer Matt Williams said on Thursday that they are “not currently proceeding” with LIV 2.0 and are “toggling to a value-maximising wind-down of their business”.

That development was triggered by their investors, the credit division of investment firm BC Partners, pulling out on Wednesday – primarily because they were not satisfied by the mix of players who had signed up.

LIV said it will continue to consider and remain open to alternatives during that process.

“Despite everyone’s best efforts we just couldn’t get to the level of combined financial and player support necessary for a viable LIV 2.0 within the required timeline,” Williams told a bankruptcy court hearing.

“It was not an easy conclusion for anyone who believed in what LIV Golf built but it is the right one for these estates in these circumstances.

“Obviously if the facts or the circumstances change the strategic initiative committee can and will revisit this decision.

“But sitting here today we believe the wind-down path is the best path to maximise value for stakeholders.”

The league’s future has been in doubt for some time after PIF withdrew its backing in April, leading to the league filing for bankruptcy protection in September.

LIV had secured a potential $300m (£223m) in financing from BC Partners Credit, but it became clear this week that the proposed new league was not viable.

In recent weeks, high-profile names such as Jon Rahm and Sergio Garcia walked away.

BBC Sport had been told that those working on LIV 2.0 had received commitments from co-investors, felt support from within golf and had about 30 players signed up, including major winners.

It had also announced a schedule for 2027, with an event planned for Adelaide from 18-21 March at Kooyonga Golf Club.

Speaking after Williams, PIF lawyer Scott Greissman told the court “we have just learnt about this decision a few hours ago”, adding “we respect the decision”.

“We look forward to working with the committee and the debtors toward an orderly wind-down by the end of the year,” he said.

The 13-minute court hearing did not shed light on which players had signed up, nor any figures surrounding the money owed to unsecured creditors.

A disclosure statement and wind-down plan will be filed by 9 November.

A BC Partners spokesperson said: “BC Partners Credit supported a transaction that aligned the interests of players and investors, offering a credible path toward building a sustainable future for LIV Golf.

“While there was great support for the league, we are disappointed that mutually acceptable terms could not be reached among the various stakeholders.”

In a lengthy statement, LIV Golf CEO Scott O’Neil said: “Building a global platform designed to bring new, younger, and more diverse fans to the sport of golf has been the round of a lifetime for all of us. LIV Golf was fun, demanding, inspiring, at times challenging – but always rewarding.”

LIV Golf has provided one of the most tumultuous episodes in the history of golf since its launch in 2021, one which threatened to tear the sport apart.

High-profile players joined and were banned from other tours, as well as events such as the Ryder Cup.

More than $5bn (£3.7bn) was spent by PIF, with major winners including Rahm and Bryson DeChambeau lured by lucrative contracts and vast prize money.

But the future of the concept – and its star players – has been shrouded in uncertainty this year after the 2026 season ended early. An event in August in Indianapolis proved to be the last.

When PIF announced it was withdrawing its funding in April, LIV announced a “strategic evolution” – including a newly established independent board – and attempted to find replacement financial investors.

The exodus of players continued, however, including the exits of Rahm, Ian Poulter, Tyrrell Hatton and Graeme McDowell. When Rahm left it was reported he was owed about $100m (£75m) from the remainder of the contract.

The European tour, which is sponsored by DP World, had also increased pressure on players when it announced last month that those who signed up to LIV Golf next season would not be allowed to be members of the European tour in 2027.

That would have also spelled an end to any players with ambitions of featuring in the Ryder Cup, as only DP World Tour members can play for Europe in the biennial team competition.

Speaking this week, Lee Westwood, one of the most high-profile players to join LIV when it first began in 2022, said the proposed revamp still had potential to thrive but added “there hasn’t been anything presented to me that is agreeable for LIV 2.0”.

DeChambeau, who had not revealed his future plans, said he hopes the league “exists forever”, while former Taylor Made and Adidas executive Mark King was appointed as a senior adviser last week.

A loose deadline for LIV to confirm its players for 2027 had been set for last Sunday.