Jon Rahm is set to leave LIV Golf after three seasons after rejecting the terms offered to him as part of the breakaway circuit’s proposed relaunch, dealing another major blow to the league as it attempts to restructure its business.
Rahm’s lawyer confirmed during a US bankruptcy court hearing that the two-time major champion had independently reviewed the proposed conditions for what has been described as “LIV 2.0” and decided they were unacceptable.
The Spaniard will therefore not participate in the restructured version of the competition, with Rahm and LIV Golf now working towards a separation agreement that could formally bring his time with the league to an end.
Rahm’s attorney John Beck told the court that his client had examined the new proposal before deciding not to move forward.
Reports suggest talks over an agreed separation are already at an advanced stage, with an agreement potentially being completed in mid October.
The development represents a significant change for one of LIV Golf’s biggest stars.
Rahm joined the Saudi backed competition in late 2023 in one of the most important signings in LIV’s history. The former world No. 1 arrived shortly after winning his second major championship at the Masters and immediately became one of the central figures in the league.
He went on to win the individual LIV Golf season title in each of his three campaigns with the circuit. His 2026 season included victories in Hong Kong and Mexico City along with four runner up finishes.
However, LIV Golf’s financial situation has changed dramatically.
The organisation filed for Chapter 11 bankruptcy protection in New Jersey in September, with court documents listing liabilities substantially higher than its available assets. Saudi Arabia’s Public Investment Fund, which had provided billions of dollars in financial backing since LIV launched in 2022, had previously confirmed it would stop funding the competition at the end of the 2026 season.
That decision forced LIV to develop a new financial model for 2027 and beyond.
Investment firm BC Partners Credit has committed up to $300 million to support the restructuring, subject to bankruptcy court approval. The proposed model would place greater emphasis on player ownership and team equity while attempting to make LIV financially sustainable without the same level of support previously provided by the PIF.
Rahm, however, has decided the proposed arrangement does not work for him.
The exact details of the terms he rejected have not been made public, but Sky Sports reported that Rahm is potentially owed as much as $150 million (£113 million) relating to the remainder of the contract he signed when joining LIV.
Bankruptcy documents separately list Rahm as LIV’s largest player creditor, with an unsecured claim of approximately $7.5 million.
Those figures relate to different aspects of the financial relationship between Rahm and LIV and highlight the complexity involved in completing any separation agreement.
Rahm is not the only major player examining his future.
Sergio Garcia successfully asked the bankruptcy court to lift restrictions connected to his existing LIV contract, allowing him to consider other options for the 2027 season.
Other prominent players, including Bryson DeChambeau, Dustin Johnson and Cameron Smith, have also appeared as creditors during the bankruptcy process, creating further uncertainty around the strength of LIV’s future playing roster.
For LIV Golf, losing Rahm would be particularly damaging.
He remains one of the most accomplished golfers associated with the league, having won both the US Open and Masters before joining the circuit.
His arrival in 2023 was viewed as evidence that LIV could continue persuading elite players in their prime to leave the traditional tours.
Three years later, his expected departure creates the opposite impression as the organisation attempts to convince investors, broadcasters, sponsors and players that its redesigned model remains viable.
Rahm’s exit also raises the immediate question of where he will play next.
The Spaniard has already taken important steps towards restoring his relationship with the DP World Tour.
Earlier this year, Rahm reached an agreement with the European circuit and paid approximately £2.21 million in outstanding fines related to his participation in LIV events.
That arrangement allowed him to remain a DP World Tour member and preserve his eligibility for the Ryder Cup.
Rahm has continued appearing in selected DP World Tour tournaments and is expected to compete in the season ending events in Abu Dhabi and Dubai if he meets the required qualification criteria.
He withdrew from this week’s Open de España in Madrid, but that decision was unrelated to the LIV dispute. Rahm remained at home with his wife Kelley as the couple prepared for the birth of their fourth child.
A return to the PGA Tour could be more complicated.
Rahm was previously offered a route back through the PGA Tour’s Returning Member Program but chose not to accept it.
According to Sky Sports, that means he would face a mandatory one year suspension before becoming eligible to return, potentially keeping him away from regular PGA Tour competition until late August 2027.
That would still leave major championships and selected DP World Tour events as possible competitive opportunities during the transition.
Rahm’s position is particularly interesting because he had previously indicated he was willing to honour the contract he originally signed with LIV.
His objection appears instead to relate specifically to the altered conditions proposed under the league’s new structure.
That distinction is important.
Rahm is not simply walking away from the original agreement because of poor results or dissatisfaction with his performances. His legal team has specifically stated that the terms of the proposed relaunch are unacceptable, making LIV’s restructuring the central issue behind his expected departure.
LIV officials remain publicly confident about the league’s future.
BC Partners Credit has described retaining enough leading players to support the relaunch as an achievable challenge, while LIV chief executive Scott O’Neil continues to promote a vision in which players become owners of teams and the wider competition.
But Rahm’s decision creates an obvious problem for that strategy.
A player owned league becomes much harder to promote if some of its most recognizable players decide the ownership and contractual model is not attractive enough to remain.
More decisions from LIV players are likely to follow as the bankruptcy restructuring progresses and the organization attempts to finalize its 2027 plans.
For Rahm, meanwhile, the situation could mark the beginning of another major chapter in a career that has already moved between the PGA Tour, DP World Tour and LIV Golf.
Three years after his high profile move became one of LIV Golf’s biggest victories in its battle for the world’s leading players, Jon Rahm now appears ready to walk away with his rejection of the proposed “LIV 2.0” terms creating another serious challenge for the league’s uncertain future.
