LIV Golf has returned to competition following a month-long hiatus - but the league now faces a new legal challenge.
Fifteen LIV Golf players competed in the Open Championship at Royal Birkdale, where Bryson DeChambeau became embroiled in controversy after receiving a two-stroke penalty and considering withdrawal from the tournament.
The LIV Golf contingent didn't need to travel far after the season's final men's major, heading to JCB Golf and Country Club, located less than two hours from Royal Birkdale. However, LIV is now confronting fresh legal action. It comes after LIV Golf duo explain thinking behind U-turn after finally settling fines
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The Saudi-backed tour is dealing with potential closure concerns amid reported funding reductions from Saudi Arabia's Public Investment Fund (PIF), and Mobii Systems Group Limited has initiated legal proceedings against the organization.
Front Office Sports reported the lawsuit on Monday. Mobii provided LIV's 'Any Shot, Any Time' streaming service, and alleges that LIV Golf owes more than $1.1 million for contract violations and outstanding invoices. The legal action was reportedly initiated on Friday.
"We recognize that delays in payment have caused strain in our relationship, and we understand this is a frustrating time," Nick Connor, LIV Golf's senior vice president of technology, allegedly wrote to Mobii in May after terminating their agreement, according to ESPN.
"While we understand your frustration, our view is that litigating outstanding invoices will not be a productive use of either of our time and resources.
"Please know that this decision is not reflective of the quality of work or services provided, and we are truly grateful for your partnership over the last several years."
The feature was terminated following the disclosure of a PIF funding reduction, with the league describing the elimination as a "strategic decision" and now processing refunds for fans who bought the $59.99 annual subscription or individual event passes.
"Because LIV Golf repudiated the Agreement and terminated Mobii's ability to perform under the Agreement, Mobii will not receive the revenue it was contractually entitled to receive from the remaining six events in LIV Golf's schedule, all of which will take place during the Agreement's term," the lawsuit stated, according to ESPN.
LIV Golf has been forced to reimburse fans nearly $60 they spent on the feature, with Mobii's contract scheduled to conclude at year's end, though the feature was discontinued during the Virginia event in early May.
LIV Golf is approaching the final stages of its season, with only four tournaments left on the calendar, while CEO Scott O'Neil searches for prospective new backers after informing staff that potential layoffs could be on the horizon.
The prospect of closure has also created uncertainty among players, as there remains no definitive route back to the PGA Tour.