LIV Golf loses star over 'unacceptable' terms
Quick Look
Former world number one Jon Rahm is quitting LIV Golf after reviewing the terms of LIV 2.0, which he deemed unacceptable, removing one of the circuit's biggest stars as it seeks to emerge from bankruptcy with new funding from BC Partners.
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Why It Matters
LIV Golf filed for Chapter 11 bankruptcy protection in New Jersey last month, listing several star golfers as creditors owed millions in unsecured claims, with Jon Rahm having the largest player claim at $7.5 million.
Former world number one Jon Rahm is quitting LIV Golf, robbing the breakaway circuit of one of its biggest stars while it fights to emerge from bankruptcy.
Rahm's attorney John Beck, speaking at a hearing in the US Bankruptcy Court of New Jersey, said the two-time major champion made his decision after looking over details of LIV Golf's planned next phase.
"Mr Rahm has independently reviewed the proposed terms of LIV 2.0, as the parties have been referring to it, and has determined that those terms are unacceptable as to him, and he will not be participating going forward in LIV 2.0," Beck told the court.
Other golfers asked a US bankruptcy judge to help terminate their contracts and clarify their ability to negotiate with other tournament organisers and sponsors as their LIV contracts go unpaid.
LIV has already agreed to terminate Sergio Garcia's contract after determining the league would not honour its terms.
Attorneys for Bryson DeChambeau, Cameron Smith, An Byeong-hun, Marc Leishman, Cameron Tringale and Matthew Wolff asked the judge to allow those players out of their old contracts.
Ending those contracts would not preclude those players from agreeing to participate in LIV 2.0.
Rahm, one of the most high-profile players to join LIV Golf, has won three consecutive season-long individual titles since joining the circuit in late 2023.
When LIV Golf filed for Chapter 11 protection in New Jersey last month, its filing listed several star golfers as creditors still owed millions in unsecured claims.
Among them, Rahm had the largest claim among players at $US7.5 million ($10.8 million).
Earlier this week, LIV secured funding from BC Partners to help it emerge from restructuring and strengthen its financial footing ahead of the 2027 season.
The financing, up to $US300 million ($430 million), remains subject to bankruptcy court approval and customary conditions.
What to Watch
AI outlook — possibilities, not facts
LIV Golf will seek bankruptcy court approval for its $300 million funding from BC Partners to emerge from restructuring
Likely · Within weeks
More LIV Golf players may seek to terminate their contracts following Jon Rahm's departure
Possible · Within months
Open Questions
- Will other high-profile LIV Golf players follow Jon Rahm's lead and quit the circuit?
- Can LIV Golf successfully emerge from bankruptcy with the proposed LIV 2.0 model and BC Partners funding?
- What specific terms of LIV 2.0 did Jon Rahm find unacceptable?