Jon Rahm Leaving LIV Golf After Lawyer Calls LIV 2.0 Terms "Unacceptable"
Rahm's lawyer told a U.S. bankruptcy court the Spaniard will not join the restructured LIV 2.0, a major blow to a league that is trying to survive without Saudi funding.
What happened
Jon Rahm is leaving LIV Golf. His attorney, John Beck, told a U.S. bankruptcy court hearing on Wednesday that the 31-year-old Spaniard had "independently reviewed the terms of LIV 2.0 and determined those terms are unacceptable as to him".
That makes Rahm one of the biggest names to walk away from the league's restructured plan. He was arguably LIV's most high-profile signing when he left the PGA Tour in December 2023 in a deal reportedly worth $300m. In August he won his third straight LIV season title.
Later in the hearing, the court heard that LIV and Rahm's representatives are in "advanced discussions for a consensual separation agreement". The hope is to finalise it by a hearing on 5 November. One outlet reported an earlier target of 15 October, so the timing is not fully settled.
LIV's financial trouble
LIV filed for Chapter 11 bankruptcy protection in September after Saudi Arabia pulled its multibillion-dollar funding. Chapter 11 postpones a company's obligations to creditors and gives it time to reorganise its debts or sell parts of the business.
The league has secured a possible $300m in financing from BC Partners Credit as it tries to stage a 2027 season. Saudi Arabia's Public Investment Fund is also providing a $49.6m bankruptcy loan to help fund the process.
Players are owed at least $45m and have the option to leave. BBC Sport understands there is no obligation on players to sign on to LIV 2.0, even if they previously signed multi-year contracts. An agreement also extends the window for LIV to discuss terms with its players until 25 October.
Rahm tops the list of the 30 largest unsecured claims against the league, with a claim of $7.5m according to the BBC. Another outlet reported he is owed more than $100 million, a figure the BBC's court-document numbers do not match.
Other players in limbo
Sergio Garcia was granted a deal at the same hearing allowing his contract to be terminated as well as rejected. Once he signs the termination agreement, he is understood to be free to negotiate with third parties. He has said he wants to make next year's Ryder Cup, either as a player or vice-captain.
Lawyers for Bryson DeChambeau, Cameron Smith and others asked whether rejecting contracts means they are terminated. Players want to know if they can legally talk to rival tours and sponsors. The DP World Tour is understood to be unwilling to discuss futures with LIV players unless they can prove their contracts are terminated.
Where does Rahm play next?
That is unclear. Rahm did not follow Brooks Koepka back to the PGA Tour, though the tour rewrote its rules in December to allow Koepka's return, subject to sanctions. In May Rahm reached a deal with the DP World Tour to keep his membership and stay eligible for next year's Ryder Cup.
LIV golfers are automatically banned by the PGA Tour for a year. The DP World Tour offers a route back, because the leading 10 players on the European circuit currently gain PGA Tour membership.
What happens next
Watch for 25 October, when the extended window for LIV to talk terms with players ends, and the 5 November hearing, where Rahm's separation deal is hoped to be finalised. Until his contract is formally terminated, Rahm's talks with other tours may stay on hold. His future tour has not been announced.
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Quick answers
Why is Jon Rahm leaving LIV Golf?
His lawyer told the court the proposed terms of LIV 2.0 were unacceptable to him after an independent review. The sources give no further detail on which terms.
Can Rahm return to the PGA Tour right away?
Not automatically. LIV golfers are banned by the PGA Tour for a year, and Rahm's DP World Tour deal offers a possible pathway through that circuit's top 10.
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