The Nicklaus Companies, a group of companies bearing the name of golf legend Jack Nicklaus and that is specialized in, amongst others, designing golf courses and developing golf related real estate has filed for bankruptcy. In a recent court case, a judge ruled that the company had to pay the golf legend USD 50 million in a defamation suit.
Jack Nicklaus filed the case after the company claimed earlier that he was considering a USD 750 million offer to join the LIV Golf League and that he suffered from dementia which rendered him unable to manage his affairs.
The company is currently controlled by New York banker Howard Milstein, after Nicklaus sold exclusive rights to his golf course design services, including marketing, promotional and branding rights, in 2007. Part of the deal was that the golf legend would stay on as the face of the company, yet one decade later, he indefinitely stepped away from the company after repeated clashes with Milstein.
Both Milstein and company executive Andrew O’Brien was cleared in the verdict.
A statement on the website of the Nicklaus Companies reads:
“To protect its employees, clients, and ongoing business operations, Nicklaus Companies LLC (the “Company”) and certain of its subsidiaries today announced that they have commenced voluntary chapter 11 cases in the United States Bankruptcy Court for the District of Delaware.
“The filing will allow the Company to proactively address its long-term funded indebtedness and other liabilities, as well as a jury verdict returned in a Florida state court last month following a lawsuit filed by company founder and former Co-Chair Jack Nicklaus. The jury ruled in favor of two Nicklaus Companies’ executives but awarded $50 million in damages against the Company.
Nicklaus Companies disputes the verdict and intends to explore its legal options with respect to an appeal. The chapter 11 filing, which has allowed the Company to secure a financing commitment, will stabilize and preserve Nicklaus Companies’ businesses for the benefit of its employees and clients and the legacy of the Jack Nicklaus brands as legal and restructuring options are pursued.”
“We take this step to protect our brand, our client relationships, and — most importantly — our employees,” said Phil Cotton, Nicklaus Companies Chief Executive Officer. “We are dedicated to protecting the brand and continuing to offer the highest standard of service to our clients all over the world.”