Jon Rahm is quitting LIV Golf after deeming the proposed terms for LIV 2.0 "unacceptable", depriving the breakaway circuit of one of its biggest stars as it attempts to emerge from Chapter 11 bankruptcy and reshape its future.
Rahm’s attorney, John Beck, told a US bankruptcy court hearing on Wednesday that the two-time major champion had reviewed details of LIV’s proposed next phase but had decided not to take part.
“Mr Rahm has independently reviewed the proposed terms of LIV 2.0 … and has determined that those terms are unacceptable as to him,” Beck told the court.
Rahm, a former world No 1, joined LIV in late 2023, eight months after winning the Masters to claim his second major title. He has since dominated the circuit’s season-long individual standings, winning three consecutive titles.
Rahm’s departure is a major blow to a league already facing its biggest financial upheaval since its launch in 2022.
Saudi Arabia's Public Investment Fund (PIF) announced in April that it would end its financial backing of LIV after the 2026 season, following an investment of more than $5 billion into the circuit. The decision prompted LIV to scale back operations, lay off most of its workforce, and ultimately file for Chapter 11 protection in New Jersey in September.
PIF has agreed to provide a further $49.6 million in debtor-in-possession financing while the bankruptcy proceedings continue.
The league’s bankruptcy filing listed several high-profile players among creditors with millions of dollars in unsecured claims, with Rahm’s claim the largest at $7.5 million.
He is not the only player seeking an exit.
Attorneys for Bryson DeChambeau, Cameron Smith, An Byeong-hun, Marc Leishman, Cameron Tringale and Matthew Wolff asked the judge to allow their clients to terminate their existing LIV contracts and to clarify their ability to negotiate with other tournament organisers and sponsors.
LIV has already agreed to terminate Sergio Garcia’s contract after determining it would not honour its terms.
The requests do not necessarily rule out players joining LIV 2.0, with sources familiar with the league saying discussions over participation remain on track.
Earlier this week, LIV secured up to $300 million in financing from BC Partners to help fund its emergence from restructuring and prepare for the 2027 season.
The proposed new model would see players become equity owners in both LIV Golf and its teams, although the financing remains subject to court approval and customary conditions.
Rahm’s decision, however, leaves LIV without one of its most recognisable faces as it attempts to secure its next chapter.
