LIV Golf is set to join the sporting scrapheap after a private equity firm pulled the plug on its $US300 million ($A428m) commitment to help reboot the embattled competition.

The breakaway league has been embroiled in chaos since Saudi Arabia’s Public Investment Fund ended its backing this year after investing more than $US5 billion ($A7.1 billion).

LIV filed for ‌Chapter 11 bankruptcy protection in September, allowing star players Jon Rahm, Sergio Garcia, Louis Oosthuizen, Ian Poulter and Tyrrell Hatton to quit their contracts.

Australian major winner Cameron Smith had yet to announce his intentions before the bombshell arrived on Wednesday in the US (Thursday AEDT).

Multiple reports said BC Partners Credit pulled its funding in the wake of the defections, believing too many big names had exited to justify the investment.

Another court hearing in the bankruptcy case on Thursday (Friday AEDT) is set to be the beginning of the end with remaining assets to be liquidated.

Smith and several other Australian golfers, including Marc Leishman and rising star Elvis Smylie, now appear set to return to the European (DP World) Tour if they are to continue in the professional ranks.

There is as yet no path back to the PGA Tour, which has maintained a strong stance against LIV golfers.

LIV Golf’s popular Adelaide event, seen as the league’s benchmark, will also fall by the wayside.

“BC Capital Partners have made it clear that they don’t intend to support LIV if they don’t get the players required, which is essentially consistent with the South Australian government’s position,” SA Premier Peter Malinauskas said on Thursday.

“I have reached out to LIV Golf over the last couple of hours and sought confirmation myself.

“It’s fair to say that on all accounts, for all the information we have before us, I think it’s not going to happen next year.”

The South Australia capital has already secured the Australian Open from 2028-34, hosting the men’s and women’s tournaments in alternate years.

Malinauskas said LIV Golf’s Adelaide tournament had been an “economic boon” worth $316 million for his state.

“It worked, big time,” he said.

“In fact it blew everyone’s expectations (away), including my own ... it worked out to be a punt that paid off.

“The fact that it’s not going to in the future just invites us to redouble our efforts with the Women’s Australian Open at the beginning of 2028 and the men’s (open) at the end of that year.”

The news of LIV Golf’s demise emerged just hours after more criticism from Rory McIlroy.

The Northern Irishman said the Saudi-backed breakaway league had taken players and sponsors from rival ‌tours and turned professional golf into an “arms race”.

McIlroy said he agreed with DP World Tour boss Guy Kinnings’ earlier assertion that LIV had sought to undermine the European circuit, pointing ‌to comments made by people involved with the league at this year’s Masters about wanting to destroy the tour.

“They took players; they took sponsors; they turned professional golf into an arms race,” the Northern Irishman told reporters ahead of the Abu Dhabi Championship.

“They ‌were going around ‌Augusta saying ⁠they wanted to destroy the European Tour. Yeah, I agree ​with everything.”

McIlroy acknowledged that LIV’s investment had brought benefits, including the creation of the International Series on the Asian Tour, but said the latter had ultimately been left without the support it needed.

“Where did that leave the Asian Tour? They left them high and ⁠dry,” said McIlroy, adding the tour had ‌since ​returned to the fold through partnerships with the PGA Tour and DP World Tour.

The ​six-time major champion ‌said LIV’s financial model was always likely to face difficulties if investors failed ​to see a return or decided to redirect their money elsewhere.

McIlroy, 37, added the disruption caused by the breakaway league could ultimately leave men’s golf ​on a more sustainable footing.

“For long-term sustainability for men’s professional golf, I think ​we are in a ⁠much better spot,” he said.

— with AAP