Jon Rahm is set to leave LIV Golf after deciding that the proposed terms for the league’s planned 2027 relaunch are unacceptable. The former world No. 1’s decision comes at a crucial moment for LIV, which is attempting to rebuild its business after entering Chapter 11 bankruptcy proceedings in the United States.
Rahm’s lawyer, John Beck, told a bankruptcy court hearing in New Jersey that the two-time major champion had independently reviewed the proposed LIV 2.0 terms and decided he would not participate in the next version of the league.
The development represents one of the biggest setbacks yet for LIV Golf. Rahm was not only one of its most recognisable players but also the league’s individual champion in each of his three seasons since joining in 2023.
Why Jon Rahm is leaving LIV Golf
The exact details of the proposed LIV 2.0 terms have not been made public. However, Rahm’s legal representatives made his position clear during Wednesday’s hearing.
Rahm and LIV are now in advanced discussions over a consensual separation agreement. The two sides are hoping to finalise the agreement before another court hearing, with the separation expected to be addressed in the coming weeks.
That means Rahm’s departure is not simply a sporting decision. It is also tied directly to LIV Golf’s complicated restructuring process.
LIV filed for Chapter 11 protection in September after Saudi Arabia’s Public Investment Fund withdrew its financial backing. The restructuring is designed to give the organisation time to reorganise its debts, secure new investment and establish a sustainable model for the future.
The league has since secured up to $300 million in financing from BC Partners Credit, providing a potential financial lifeline ahead of the planned 2027 season.
But the biggest question now is whether LIV can retain enough of its leading players to make the relaunch commercially and competitively viable.
Rahm was LIV’s biggest signing
When Rahm announced his move from the PGA Tour in December 2023, it was regarded as a major victory for LIV Golf.
The Spaniard was still at the peak of his career. He had already won the 2023 Masters and 2021 US Open and was one of the most accomplished players of his generation.
His reported LIV agreement was worth around $300 million, or approximately £222 million at the time. His arrival gave LIV something it had struggled to obtain in its early years: a superstar in his prime with major championship credibility.
Rahm subsequently delivered on the course.
He won the LIV individual championship in 2024, 2025 and 2026, making him the first player to dominate the season-long standings across three consecutive seasons. LIV’s own records show Rahm finished top of the 2025 regular-season standings with 226.16 points.
That makes his decision to walk away particularly significant.
LIV is now losing a player who has been central to its identity since his arrival.
LIV’s financial crisis changed everything
The timing of Rahm’s departure is impossible to separate from LIV’s financial restructuring.
The league was launched in 2022 with enormous backing from Saudi Arabia’s Public Investment Fund. That financial support allowed LIV to offer huge contracts and prize purses and attract established PGA Tour stars.
However, PIF withdrew its multibillion-dollar funding after the 2026 season. LIV subsequently entered Chapter 11 proceedings in New Jersey.
Court documents showed that LIV had estimated assets of between $100 million and $500 million against liabilities of between $500 million and $1 billion.
The new plan involves BC Partners Credit providing up to $300 million while LIV attempts to emerge from bankruptcy with a new player-focused ownership structure.
The investment group has publicly expressed confidence that enough players can be retained or recruited to create the “critical mass” required for the next stage of the competition.
But Rahm’s decision is an obvious blow to that strategy.
Sergio Garcia gets freedom to explore his future
Rahm is not the only major LIV name whose future has become uncertain.
Former Masters champion Sergio Garcia was granted a special arrangement during the bankruptcy hearing that allows his LIV contract to be terminated and rejected.
Once that agreement is completed, Garcia will be able to explore opportunities with other organisations.
That could become particularly important because Garcia has openly discussed his desire to be involved in the 2027 Ryder Cup, either as a player or vice-captain.
The Spaniard has retained his DP World Tour membership and has previously made clear that he wants to maximise his chances of being involved in the Ryder Cup.
The DP World Tour has become an important potential pathway for LIV players because its leading players can gain access to the PGA Tour.
What happens to Bryson DeChambeau and Cameron Smith?
Rahm’s departure also raises questions about other major LIV stars.
Lawyers representing several players, including Bryson DeChambeau and Cameron Smith, asked the court for clarity over what happens to their contracts following the restructuring.
One of the major issues is whether the rejection of a LIV contract automatically means a player is free to discuss future opportunities with rival tours and sponsors.
That distinction matters enormously.
A player may technically have a rejected contract but still want legal certainty before entering negotiations with another tour.
LIV’s lawyers did not agree to give every player the same arrangement that Garcia received. They argued that they needed additional time to examine individual contracts and understand the consequences of termination.
The issue has therefore been pushed toward another court hearing.
Can Rahm return to the PGA Tour?
This is where Rahm’s future becomes particularly complicated.
Rahm did not accept the PGA Tour’s special returning-member programme earlier this year. Brooks Koepka accepted the opportunity and subsequently returned to the PGA Tour, while Rahm remained with LIV.
As a result, Rahm cannot simply walk away from LIV and immediately return to the PGA Tour without dealing with the applicable restrictions.
LIV players are subject to a one-year suspension from the PGA Tour, although the precise consequences for Rahm following the bankruptcy and contract separation will depend on the applicable rules and any future agreement.
The DP World Tour therefore represents another important part of Rahm’s future.
In May, Rahm reached an agreement with the European circuit after a dispute over fines relating to his participation in LIV events. That agreement allowed him to retain his membership and remain eligible for the Ryder Cup pathway.
LIV insists its future remains positive
Despite Rahm’s impending departure, LIV’s new financial backers remain confident about the league’s future.
Ted Goldthorpe of BC Partners Credit has said the immediate priority is signing players before the new deadline of 25 October.
The investment group also wants to rebuild the organisation’s staff, plan its events and develop the business for the long term.
That confidence will now face its biggest test.
LIV still has players such as DeChambeau and Cameron Smith under contracts, while the restructuring could create opportunities for new signings. But losing Rahm, following Koepka’s earlier departure, leaves the proposed LIV 2.0 without two of the biggest names who helped establish its credibility.
For a league trying to convince fans, sponsors and investors that it has a sustainable future, that is a significant challenge.
What Jon Rahm’s exit means for LIV 2.0
Rahm’s departure could ultimately prove to be more than just one player’s decision.
The Spaniard was arguably the strongest bridge between LIV’s disruptive early years and its attempt to become a permanent part of professional golf.
He joined as a major champion in his prime, won three consecutive individual titles and became one of the faces of the competition.
Now, as LIV attempts to emerge from bankruptcy, that face is leaving.
The league still has access to significant financing, and its investors remain confident that enough players will commit to the new project. But retaining its biggest stars will be essential if LIV 2.0 is to launch with credibility.
For Rahm, meanwhile, the next chapter is still unclear. A return to the PGA Tour is complicated, while the DP World Tour offers a more immediate competitive route.
What is certain is that one of the most important chapters of the LIV Golf experiment is coming to an end.
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