Jon Rahm’s LIV Settlement Forfeits All Remaining Payments

Jon Rahm is set to walk away from LIV Golf with no additional money, according to the terms of a separation agreement filed late Wednesday in the league’s Chapter 11 bankruptcy case in New Jersey.

Rahm is LIV’s largest unsecured creditor, per bankruptcy filings, owed $7.47 million in past unpaid dues. But it is widely believed that he was still owed more than $100 million in future guarantees from the multiple years left on his LIV contract. Rahm’s lawyer informed the bankruptcy court on Oct. 7 that the golfer did not intend to compete on “LIV 2.0” in 2027 and beyond. BC Partners Credit is set to provide $300 million of financing for LIV should it emerge from bankruptcy, with the Saudi PIF no longer funding the league.

Now Rahm is set to release LIV of “all monetary and economic claims,” including everything from prize money and bonuses to annual payments and commitment fees, according to the separation agreement, which will be presented to the bankruptcy court for final approval during a Nov. 5 hearing. The settlement is “intended as a complete economic walk-away.”

During his three seasons on LIV, Rahm earned more than $106 million in on-course prize and bonus money during his three seasons at LIV. The exact value of his original deal with LIV signed ahead of the league’s 2024 season was never disclosed, but some reports indicated it was as high as $300 million in total value.

As part of his exit, Rahm is forfeiting equity he had in his LIV team, Legion XIII (as captain, he was entitled to a 25% ownership stake), but he is retaining ownership of Legion XIII IP—with some notable restrictions like not being allowed to use team marks in affiliation with TGL, the indoor team golf league co-founded by Tiger Woods and Rory McIlroy in which the PGA Tour is an investor.

Once Rahm has officially severed all contractual ties to LIV, he will be free to openly negotiate with the PGA Tour about a potential return, although PGA Tour CEO Brian Rolapp said last month there were no current plans to bring back the Returning Member Program that allowed Brooks Koepka to quickly rejoin the tour in January. Rahm is still a member of the DP World Tour and will remain eligible to compete on that circuit in 2027.

More LIV Contracts Rejected

LIV’s motion to reject 20 other player contracts was approved Wednesday. Among the most notable names on the list are major champions Bryson DeChambeau, Cam Smith, Dustin Johnson, and Bubba Watson. Notable players not listed in this round of rejected contracts include Joaquin Niemann, Tyrrell Hatton, and Tom McKibbin.

Rejecting contracts has been part of LIV’s strategy since filing for bankruptcy on Sept. 8. The league is hoping to re-sign players and new ones under the new “LIV 2.0” model that gives players equity in the league. As part of LIV’s proposed deal with BC Partners, there is an Oct. 25 deadline for requisite players to sign up.