Jon Rahm to leave LIV Golf after rejecting terms for bankrupt league's relaunch

Jon Rahm is set to walk away from LIV Golf after rejecting the terms offered to keep him on the breakaway circuit, dealing a critical blow to the league as it attempts to survive Chapter 11 bankruptcy.

His lawyer, John Beck, told a US bankruptcy court hearing that the two-time major champion found the conditions proposed for a revamped "LIV 2.0" unacceptable. The two sides are now in advanced talks over a consensual exit agreement, which they expect to complete ahead of another hearing on 5 November.

Rahm’s planned departure lands as fellow Spaniard Sergio Garcia secured an outright release from his contract. A federal bankruptcy judge in New Jersey lifted the automatic stay on Garcia's deal, freeing the 2017 Masters champion to seek a place on other tours for the 2027 season.

Why Jon Rahm rejected LIV 2.0

The split follows the financial collapse of LIV Golf, which sought bankruptcy protection in September after Saudi Arabia's Public Investment Fund abruptly pulled its funding. To keep the circuit afloat, private equity firm BC Partners Credit stepped in with an initial $4m injection and an offer of up to $300m in rescue financing.

Under that proposal, existing player deals are being renegotiated, with an extended deadline of 25 October for golfers to sign up to the new structure. Players have no obligation to join the relaunch, even if they held multi-year contracts with the original league.

Court filings show LIV owes its players at least $45m (£33m). Rahm, who signed a deal worth a reported £222m ($300m) in December 2023, sits at the top of the tour's list of unsecured creditors, with $7.5m (£5.5m) still owed to him.

Rahm won his third straight LIV individual season title in August, but speculation surrounding his frustration with the tour's direction had mounted for months before the bankruptcy filing.

Where Sergio Garcia and other players stand

Garcia's legal team pressed the court directly to end his tie to LIV. With the stay lifted, he is free to pursue playing rights elsewhere. Garcia retained his DP World Tour membership, but any route back to the PGA Tour remains blocked.

PGA Tour chief executive Brian Rolapp has reiterated that the American circuit will not reopen the return window briefly made available to select defectors. Brooks Koepka took that route back under revised rules, but any other LIV player seeking re-entry currently faces a mandatory one-year suspension.

Garcia left the PGA Tour acrimoniously in 2022, muttering on camera that he could not wait to leave during a rules dispute at the Wells Fargo Championship before joining LIV's founding roster weeks later.

What happens next for LIV Golf

Ted Goldthorpe, head of BC Partners Credit, insisted this week that the league's relaunch is proceeding, telling an audience in London that the venture is "all systems go" as it attempts to sign players before the October deadline. However, the loss of Rahm strips the venture of its biggest marquee signing.

Rahm already reached a deal in May with the DP World Tour to preserve his membership, ensuring he remains eligible for the Ryder Cup. Where he will play his regular tournament golf once the separation agreement is signed on 5 November remains undecided.