The short version
- Jon Rahm will leave LIV Golf after his lawyer declared the proposed terms for the league's restructuring, known as LIV 2.0, unacceptable during a bankruptcy court hearing.
- LIV Golf filed for Chapter 11 protection in September after Saudi Arabia withdrew funding, but has secured potential financing from BC Partners Credit to attempt a 2027 season.
- Rahm, who joined LIV in December 2023 for a reported £222 million deal, tops the list of creditors with an unsecured claim of $7.5 million and is in advanced discussions for a consensual separation.
Jon Rahm is set to leave LIV Golf after determining that the proposed terms for the league's restructuring are unacceptable. The announcement was made by Rahm’s lawyer, John Beck, during a bankruptcy court hearing. Beck stated that the 31-year-old Spaniard independently reviewed the terms of LIV 2.0 and found them unsatisfactory. This development represents a significant setback for the golf league, which is attempting to secure its future following financial turmoil.
LIV Golf filed for Chapter 11 bankruptcy protection in the United States in September after Saudi Arabia withdrew its multibillion-dollar funding. Despite this, the league has secured a possible $300 million in financing from BC Partners Credit. This capital is intended to help the organization move forward with plans for a 2027 season. However, the restructuring process requires negotiations with players who are owed substantial sums.
Rahm was arguably the most high-profile athlete to join LIV when he departed the PGA Tour in December 2023. His move was facilitated by a deal worth a reported £222 million ($300 million). Since joining, Rahm has remained a central figure for the league, winning his third straight LIV season title in August. He had previously stated that he had no regrets about joining LIV and supported the organizers' efforts to make the venture sustainable.
Documents presented in court outline the money owed to LIV Golf’s creditors. Among those with the 30 largest unsecured claims, Rahm tops the list with an unsecured claim of $7.5 million (£5.5 million). In total, LIV participants are owed at least $45 million (£33 million). The bankruptcy agreement secures an extension for the league to discuss terms with its players, with talks now open until October 25.
Following Rahm’s rejection of the terms, it was reported that LIV and Rahm’s representatives are in advanced discussions for a consensual separation agreement. It is hoped that this agreement will be finalized by a court hearing scheduled for November 5. BBC Sport understands that there is no obligation on players to sign on to LIV 2.0, regardless of whether they had previously signed multi-year contracts with the league.
The landscape of professional golf has shifted significantly since Rahm’s initial departure from the PGA Tour. Some players, including Brooks Koepka, have returned to the PGA Tour after the organization rewrote its rules in December to allow their comeback, subject to certain sanctions. Rahm did not follow this path initially and remained under a long-term contract with LIV.
However, Rahm has taken steps to maintain his standing in other tours. In May, he reached a deal with the DP World Tour, formerly known as the European Tour, to retain his membership. This arrangement ensures his eligibility for next year’s Ryder Cup. His decision to leave LIV now adds another layer of complexity to the ongoing realignment of professional golf circuits.
The departure of Rahm deals a massive blow to LIV's future prospects. As one of the league's biggest stars, his exit may influence other players considering their options amid the financial uncertainty. The upcoming court hearing in November will be critical in determining the final terms of his separation and the broader implications for LIV Golf’s restructuring efforts.
While Rahm has secured his position with the DP World Tour, the resolution of his contract with LIV remains pending legal proceedings. The outcome will likely set a precedent for how other players negotiate their exits or continuations within the restructured league. For now, the focus remains on the November 5 hearing to finalize the consensual separation agreement.
Sources behind this briefing
Go to the original reporting
- BBC News↗Rahm to leave LIV Golf over 'unacceptable' terms
- Golf Digest↗Jon Rahm leaves LIV Golf, dealing massive blow to LIV's future
- Yahoo Sports↗Jon Rahm to leave LIV Golf, dealing massive blow to league's future
