LIV Golf was first sued for $100 million, but the case ended with a $1 million settlement. The company accepted much less money than it originally asked for.

According to Stinger Golf's attorney, the reduced settlement reflected concerns about LIV Golf's financial condition rather than the strength of Stinger Golf's legal claims.

"Obviously $1 million doesn't represent all the damages that our client suffered," Brian Barakat, a representative of Stinger Golf, told Front Office Sports.

Barakat argued the settlement was less about the money and more about accountability.

"What LIV did in this circumstance was pretty gross. We know that they knew long before they set up the Stinger Golf Club team that they were aware of our trademark, and they just decided that they didn't care," added Barakat, as per David Rumsey of Front Office Sports.

The two sides actually settled on July 6 and filed the agreement in the U.S. District Court for the Southern District of Florida. Under the deal, LIV Golf agreed to pay $1 million.

Stinger Golf's attorney later said the company accepted the lower amount because of concerns about LIV Golf's financial situation.

The dispute started in 2022 when LIV named one of its first four-man teams Stinger Golf Club. Stinger Golf, an Ohio company that sells golf tees in stores and online across the U.S., said LIV Golf used its trademarked name without its permission.

The team later changed its name to Southern Guards GC. The team includes South African golfers Louis Oosthuizen, Charl Schwartzel, Branden Grace, and Dean Burmester.

Stinger Golf accepted the settlement because of concerns about LIV Golf's financial situation, not because its legal case was weak.

"We were very confident to go to trial," Barakat told Front Office Sports. "It wasn't a compromise based on any fear of loss in the case. It was a compromise based on what we viewed as an imminent bankruptcy."

LIV, World Wide Golf Brands, a former apparel partner, and the Stinger GC team were all listed as defendants. Only LIV will make payments under the settlement.

The bigger picture: LIV Golf's financial troubles extend beyond this case

The settlement came when LIV was facing its biggest money problems since it started. Earlier this year, Saudi Arabia's Public Investment Fund said it would stop funding LIV after the 2026 season, according to Golf Digest.

Golf Digest reported that LIV has been looking for new investors to help keep it running beyond 2026.

LIV Golf's business outside the U.S. lost nearly $600 million in 2024. Reports also say the league lost about $1.1 billion between 2022 and 2024. Against those huge losses, the $1 million settlement was only a small part of LIV Golf's bigger financial picture.

Stinger Golf's decision to accept $1 million rather than pursue the full $100 million claim at trial was, by its own attorney's admission, a business call.

"They bowed to the realities of this situation and made a compromise that made business sense for them," Barakat told Front Office Sports.

What do you think? Is LIV heading towards bankruptcy? Let us know in the comments!

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Written by

Sneha Abraham

Edited by

Rudra Dubey