The short version
- Jon Rahm has agreed to a separation deal with LIV Golf that requires him to waive approximately $100 million in outstanding payments owed under his original contract.
- The move comes after LIV filed for Chapter 11 bankruptcy protection following the withdrawal of financial support from Saudi Arabia's Public Investment Fund.
- Rahm retains the intellectual property rights to Legion XIII, the team he captained, though he is barred from using the brand within Tiger Woods and Rory McIlroy's TGL league.
Jon Rahm has finalized a separation agreement with LIV Golf that effectively ends his tenure with the controversial tour. As part of the deal, the Spanish golfer will forfeit a reported $100 million in funds owed to him by the organization. This financial sacrifice is designed to secure what Rahm described as a complete economic walk-away from the league, allowing him to move forward without lingering contractual obligations or debt disputes.
The decision follows a period of significant instability for LIV Golf. The organization filed for Chapter 11 bankruptcy protection in the United States in September after Saudi Arabia's Public Investment Fund withdrew its multibillion-dollar backing. This withdrawal left the league struggling to meet its financial commitments, including substantial payouts to contracted players. Rahm was listed as the top unsecured creditor when the bankruptcy filing occurred, with millions owed for the remainder of the 2026 season alone.
Rahm originally joined LIV Golf in December 2023 after leaving the PGA Tour, signing a contract valued at approximately $300 million. He was the most high-profile athlete to make the switch, bringing significant attention and prestige to the Saudi-backed venture. Despite his initial enthusiasm and public support for the league's sustainability efforts, Rahm has now determined that the proposed terms for continuing under LIV's new financial structure were unacceptable.
The bankruptcy filing coincided with attempts by LIV to secure new financing. Reports indicate the league sought approximately $300 million in funding from BC Partners Credit to launch a restructured version of the tour, dubbed LIV 2.0. However, Rahm declined to participate under these new conditions. By waiving his entire claim to the unpaid funds, he avoids becoming entangled in the complex legal and financial proceedings associated with the bankruptcy resolution.
While Rahm is giving up the money, he is retaining specific intellectual property rights. He will keep control of Legion XIII, the name of the team he captained during his time with LIV. This allows him to maintain a connection to that brand identity. However, there are restrictions on how this asset can be used. Specifically, Rahm is prohibited from using the Legion XIII name to form a team in TGL, the indoor high-tech golf league co-founded by Tiger Woods and Rory McIlroy.
The path forward for Rahm differs from that of some other former LIV players. Several athletes, including Brooks Koepka, have returned to the PGA Tour after the organization rewrote its rules in December to allow their re-entry, subject to certain sanctions. Rahm did not immediately follow this route upon leaving LIV initially but remained under contract. Instead, he focused on maintaining his status with the DP World Tour, formerly known as the European Tour.
In May, Rahm reached an agreement with the DP World Tour that allowed him to retain his membership. This arrangement is crucial for his eligibility in major competitions, including next year's Ryder Cup. The DP World Tour offers a pathway back to PGA Tour membership for its top players, providing an alternative route for athletes who have been banned by the PGA Tour due to their participation in LIV events.
Rahm's departure marks the end of a turbulent chapter in professional golf. He won his third straight LIV season title in August and previously stated he had no regrets about joining the league. However, the financial collapse of LIV has forced a reassessment of priorities. By cutting ties completely, Rahm positions himself to focus on his career without the baggage of unpaid debts or restrictive contracts, while navigating the complex landscape of modern golf tours.
The implications of this deal extend beyond Rahm's individual career. It highlights the fragility of LIV Golf's business model following the loss of its primary backer. Other players may face similar decisions regarding their contracts and future affiliations. As the league attempts to restructure under new ownership or financing, the departure of its most prominent star sends a clear message about the challenges ahead for LIV 2.0.
Looking ahead, Rahm's focus will likely shift toward maximizing his opportunities within the DP World Tour and potentially returning to the PGA Tour through the established pathways. The retention of Legion XIII rights offers a unique branding opportunity, albeit with limitations. His ability to compete in the Ryder Cup and other major events remains intact, ensuring that his competitive career continues despite the financial losses incurred from the LIV contract termination.
Sources behind this briefing
Go to the original reporting
- BBC News↗Rahm sacrifices £75m to secure exit from LIV Golf
