Jon Rahm Reaches Separation Agreement with LIV Golf Amid Bankruptcy Proceedings
Jon Rahm has agreed to part ways with LIV Golf, relinquishing the remainder of his lucrative contract following the organization's financial collapse. The settlement, filed in bankruptcy court, comes after the league lost its Saudi backing and filed for Chapter 11 protection. A judge is scheduled to review and approve the split next month as the future of the circuit remains uncertain.
Jon Rahm has reached a separation agreement with LIV Golf, according to documents submitted to a bankruptcy court on Wednesday. The filing follows statements made last week by Rahm's attorney to Judge Michael Kaplan of the US Bankruptcy Court of New Jersey, indicating that the golfer would not return to compete under the circuit's newly proposed financial framework. Judge Kaplan is set to rule on the agreement next month, a timeline that aligns with expected decisions regarding the league's viability for 2027.
The development comes in the wake of LIV Golf filing for Chapter 11 bankruptcy last month, having lost its Saudi financial backing earlier in the year. Despite those struggles, the circuit staged a condensed 2026 campaign that finished in August, concluding with Rahm capturing his third straight season championship.
The 31-year-old Spaniard, who won the 2021 US Open and the 2023 Masters, stood as LIV's largest unsecured creditor at the time of the bankruptcy filing, with the organization owing him $7.5 million. He had originally joined the tour from the PGA Tour in December 2023 on a deal reported to be worth $300 million, leading to earlier expectations that the debt owed to him would be considerably higher.
Throughout his time in the league, Rahm secured four individual tournament titles. He earned victories in the UK and Chicago during the 2024 season, followed by triumphs in Hong Kong and Mexico City this year.
As part of the departure terms, LIV Golf will maintain the rights to Rahm's past tournament appearances for historical records. Rahm will retain control of his personal name, image, and likeness, along with the Rahmbo and Legion XIII branding, provided that the name of his former team is not adopted in any competing golf league.
Earlier this year, a PGA Tour returning member program came to an end. While Brooks Koepka took advantage of that initiative to re-enter the PGA Tour after leaving for LIV, Rahm declined the opportunity alongside fellow competitors Cameron Smith and Bryson DeChambeau.