Jon Rahm exits LIV Golf: Two-time major champion gives up claim for remainder of nine-figure contract

Jon Rahm and LIV Golf reached a separation agreement in court on Wednesday, with the two-time major champion agreeing to forfeit all monetary claims -- fees, bonuses, prize money, annual payments, etc. -- against the league he called home for the last three years. In exchange, Rahm will receive his name, image and likeness rights once again and be free to sign with another circuit.

The agreement is "intended as a complete economic walk-away," per court documents. Judge Michael B. Kaplan of the U.S. Bankruptcy Court of New Jersey still has to approve the agreement on Nov. 5.

In addition to his personal rights, Rahm will also retain the rights to "Rahmbo" and "Legion XIII," the latter of which was the name of his team on LIV Golf. However, if Rahm does return to the PGA Tour and participate in TGL, he would not be permitted to use Legion XIII as a team name.

Rahm was listed as LIV Golf's largest unsecured creditor in the league's initial bankruptcy documents, as he was owed $7.5 million when LIV Golf filed for Chapter 11 in early September.

The former world No. 1 sent shockwaves through the golf world when he signed with the league in late 2023 for what was reported to be $300 million, although how much he ultimately collected is still unknown.

During LIV Golf's bankruptcy hearing last week, Rahm's lawyer announced that his client had "independently reviewed the proposed terms of LIV 2.0 ... and has determined that those terms are unacceptable to him, and he will not be participating going forward," according to Front Office Sports.

The PGA Tour has been unwilling to enter into any negotiations with ex-LIV Golf players until there is clarity on their contractual situation.