Jon Rahm to depart LIV Golf after rejecting terms of circuit's reorganization

Two-time major champion Jon Rahm will leave LIV Golf after his lawyer told a bankruptcy hearing on Wednesday that the terms for the league's next phase are unacceptable.

Rahm’s attorney, John Beck, informed the court that the 31-year-old Spaniard independently reviewed the proposed terms for "LIV 2.0" and determined he would not participate going forward. BBC Sport reported that the league and Rahm's representatives are currently in advanced discussions for a consensual separation agreement, which they hope to finalize by November 5.

The departure comes as LIV Golf seeks to emerge from Chapter 11 bankruptcy protection following the withdrawal of multibillion-dollar funding from Saudi Arabia in September. To stabilize its financial position, the league has secured up to $300 million in financing from BC Partners Credit, intended to support a model where players become equity owners of the league and its teams.

While the new financing aims to support the 2027 season, many players are still listed as creditors. According to court documents cited by Al Jazeera and BBC Sport, Rahm holds the largest unsecured claim among players at $7.5 million. Other golfers, including Bryson DeChambeau and Cameron Smith, have also asked a judge to terminate their old contracts as their current deals go unpaid.

BBC Sport noted that players are under no obligation to sign on to the new LIV 2.0 structure, regardless of previous multi-year contracts. While LIV golfers are typically banned from the PGA Tour for a year, Rahm previously reached a deal with the DP World Tour in May to maintain his membership and Ryder Cup eligibility.

Background

Jon Rahm joined LIV Golf from the PGA Tour in December 2023 in a deal reportedly worth $300 million. Since joining the breakaway circuit, he has won three consecutive season-long individual titles, with his most recent title win occurring in August.