Jon Rahm parts ways with LIV Golf, eyes PGA Tour return via DP World Tour

Jon Rahm of Spain has decided to leave LIV Golf as the league prepares to relaunch.

American golf media outlets including Golfweek and Golf Digest made the split official Thursday, citing proceedings at a LIV Golf bankruptcy court hearing held that day in the United States.

Rahm's attorney, John Beck, told the court that Rahm "independently and carefully reviewed the proposed terms of LIV Golf 2.0 and determined that those terms were simply unacceptable," and that Rahm had therefore decided not to participate in the league going forward.

Beck added that Rahm and LIV Golf are negotiating to finalize a separation agreement by Oct. 15, and that if no agreement is reached, the dispute will proceed to litigation.

Rahm joined LIV Golf in December 2023 after receiving a signing bonus of around $500 million, and over three seasons he topped the individual points standings and led his team to a championship, making him the league's biggest draw.

During the bankruptcy proceedings, however, it emerged that roughly $150 million in unpaid contract money remained owed to Rahm. Rather than risk renewing his contract in exchange for uncertain equity, he chose a clean break.

Rahm's formal departure is expected to deal a severe blow to LIV Golf's very survival. With other key players such as Tyrrell Hatton of England and Joaquin Niemann of Chile also seen as potential departures, the league's prospects for attracting new investment have grown increasingly uncertain.

Attention is also turning to Rahm's next move. He resolved a fine dispute with the DP World Tour this year, restoring his eligibility for the 2027 Ryder Cup.

Local media outlets consider the most likely scenario to be one in which Rahm competes on the DP World Tour while negotiating the terms of a punitive reinstatement fee of around $25 million and a suspension requirement, with a return to the PGA Tour coming after 2027.

LIV Golf, which launched on the strength of Saudi Arabia's Public Investment Fund, has been pushed into bankruptcy proceedings by a combination of mounting losses, litigation and unpaid bills to contractors.

Under CEO Scott O'Neil, the league sought to transform itself into "LIV 2.0" ahead of the 2027 season by bringing in outside investment and introducing an equity-swap model, but the restructuring plan — which would replace players' guaranteed contracts with uncertain equity stakes — drew fierce resistance from the players.