Gotovac tried running as a candidate of Croatian centrist and liberal opposition on 1997 presidential election. During the campaign rally in Pula he was assaulted and injured by a Croatian Army officer Tomislav Brzović who was under influence of alcohol and was shouting "Long live Ante Pavelić. I am Ustaša, I will kill you all", upon being arrested. Later it was revealed that Brzović was member of elite security unit guarding president Franjo Tuđman. The incident didn't have much impact on the campaign. This led to the formal split in HSLS. Dražen Budiša, advocating more populist rhetoric and future coalition with HDZ, regained the party leadership. Gotovac, who advocated HSLS remaining true to liberal principles, left HSLS and formed new Liberal Party. This party failed to attract majority of HSLS membership and its voters.