bankruptcy

Board of trustees recommending that the main building be closed immediately due to costs, US newspaper reports.

The John F Kennedy Center for the Performing Arts in Washington, DC, is on the brink of bankruptcy and could close as soon as Tuesday, The Washington Post has reported.

According to the report in the United States newspaper on Sunday, the institution’s board of trustees, of which President Donald Trump is the chairman, has argued that putting the president’s name on the facade could be the only way to avoid imminent and “certain fiscal collapse”.

The trustees also say the institution will not be able to pay employees or meet maintenance costs within a few weeks.

The assessment was set out in a 57-page report before a special meeting on Tuesday, when the Trump-led board is expected to consider the two main issues affecting the performing arts centre: A financial crisis and a physical one, as the building needs renovation.

The Post reported that board members are recommending that the main building be closed immediately due to costs.

The ⁠Post also said Trump ⁠would help the Kennedy Center if his involvement is acknowledged. The trustees’ report represents “a remarkable new phase in Trump’s takeover of the Kennedy ⁠Center, which has been engulfed by financial turmoil, leadership upheaval and litigation ⁠since he installed himself as chairman ⁠last year”, the paper said.

The Kennedy Center was named in honour of the late US president who championed civil rights before he was assassinated in 1963.

Trump placed himself as chairman of the Kennedy Centre shortly after beginning his second term last year, and in December his hand-picked board voted to rename it the “Trump-Kennedy” Centre, a move later blocked in court.

In response to Trump’s takeover, a host of artists have cancelled concerts, with US media reporting that ticket sales had fallen to their lowest levels since the COVID-19 pandemic.

The Post reported that the centre was expected to collect about $124m of the projected $220m in revenue that it had budgeted, “leaving a roughly $23 million deficit even after substantial spending cuts” this past fiscal year.

It added that a spokesperson for the centre blamed the problems on “financial mismanagement by previous leadership” and said Trump’s name had attracted new donors.

LIV Golf and its related entities have filed for Chapter 11 bankruptcy protection four years after the league’s debut as a heavy-spending, player-friendly alternative to the PGA Tour.

Rather than signal the end of LIV, though, the move is designed to help the league move into the future without Saudi funding.

“We are excited about what lies ahead and yet, there is still much to accomplish in the months ahead,” CEO Scott O’Neil said in a statement released by the league on Tuesday. “We believe deeply in LIV Golf’s future, the opportunity in front of us, and the people who will help us realize it. We will not rest until we deliver on LIV Golf’s full potential.”

After launching in June 2022, LIV once paid nine-figure signing bonuses to lure away top players from the PGA Tour. Spending had reached an estimated $6 billion by the time the Public Investment Fund of Saudi Arabia decided to end its financial support in April.

On Tuesday, LIV said it has entered a restructuring support agreement with BC Partners Advisors and voluntarily entered a court-supervised restructuring process under Chapter 11 in the United States Bankruptcy Court for the District of New Jersey.

Last month, O’Neil announced a long-term plan that would have the golfers become the majority equity holders in the league. In a letter to fans on Tuesday, he said that this week’s moves are steps toward the league’s long-term goals.

“Now it is time to enter the next phase of LIV Golf,” O’Neil said. “Today, we took an important step forward to get there. LIV Golf has entered a court-supervised restructuring process that provides us with the time and framework to address previous financial obligations and complete a transaction that will make the League’s next phase a reality. Put simply, this process is designed to build a stronger and more sustainable future for LIV Golf.”

O’Neal said the new league model will expand the field for events from 57 to 75 players, introduce a 54-hole cut and create Monday qualifiers. It will “be built around a sustainable business model and deeper alignment between players and the League, with team golf at its core,” he wrote.

“Players will have the opportunity to share directly in the value they help create, while teams will be positioned to grow into enduring global sports businesses. And fans will remain at the center of everything we do.”

In its bankruptcy filing, LIV listed estimated assests of between $100 million and $500 million and liabilities of between $500 million and $1 billion. Players Jon Rahm, Bryson DeChambeau, Dustin Johnson and Cameron Smith were listed as the four leading creditors.

The league ended its season in August. Four vendors already have filed lawsuits because they have not been paid.

The Associated Press contributed to this report.