In a significant shake-up for the professional golf landscape, former world number one Jon Rahm is officially parting ways with LIV Golf. This departure is a major setback for the Saudi-backed circuit, which is currently grappling with Chapter 11 bankruptcy proceedings.
During a bankruptcy hearing on Wednesday, Rahm's attorney, John Beck, revealed that the two-time major champion made his decision after meticulously reviewing the proposed terms for LIV Golf's next phase, dubbed 'LIV 2.0'. Beck informed the court, "Mr. Rahm has independently reviewed the proposed terms of LIV 2.0, as the parties have been referring to it, and has determined that those terms are unacceptable as to him, and he will not be participating going forward in LIV 2.0."
A pin flag is displayed during the pro-am prior to the LIV Golf Invitational - Bedminster at Trump National Golf Club Bedminster on July 28, 2022 in Bedminster, New Jersey.
Credit: Cliff Hawkins | Getty Images Sport | Getty Images
Rahm's exit highlights broader discontent within the league, as several other prominent golfers have also petitioned a U.S. bankruptcy judge to terminate their contracts. These players are seeking clarity on their ability to negotiate with other tournament organizers and sponsors, citing unpaid LIV contract obligations. Sergio Garcia's contract has already been mutually terminated due to the league's inability to honor its terms. Attorneys representing stars like Bryson DeChambeau, Cameron Smith, An Byeong-hun, Marc Leishman, Cameron Tringale, and Matthew Wolff have all requested judicial approval for their clients to be released from their existing agreements. However, terminating these contracts would not prevent these players from potentially rejoining LIV 2.0 under new terms.
Despite these high-profile departures and contract disputes, sources close to LIV Golf's operations insist that discussions with players regarding their participation in LIV Golf 2.0 are progressing as planned, and the recent court statements do not alter the transaction's trajectory or momentum.
Rahm, a revered figure in golf, joined LIV Golf in late 2023, just eight months after securing his second major title at the Masters. His initial signing was a significant coup for the breakaway tour. When LIV Golf sought Chapter 11 protection in New Jersey last month, Rahm was listed among the creditors, with the largest claim among players at $7.5 million in unsecured claims.
The league recently secured crucial funding, up to $300 million, from BC Partners to facilitate its emergence from restructuring and bolster its financial stability ahead of the 2027 season. This financing, which requires bankruptcy court approval, is set to usher in the 'next phase' of LIV Golf, where players would transition into equity owners of both the league and its associated teams, according to BC Partners Credit.
