Jon Rahm has agreed to walk away from LIV Golf without any further payment, giving up a reported nine-figure sum to end his contract with the bankrupt league.
Under a separation agreement filed late on Wednesday (US time) in LIV’s Chapter 11 bankruptcy case in New Jersey, the Spaniard releases the league from “all monetary and economic claims”, Front Office Sports reported. The settlement is described as “a complete economic walk-away”.
Rahm, 31, is LIV’s largest unsecured creditor and was owed US$7.47 million in unpaid past dues. ESPN reported it is believed he was owed more than US$100 million over the rest of his contract, while BBC Sport put the figure he is giving up at a reported £75 million.
The agreement still needs approval from US Bankruptcy Court Judge Michael B. Kaplan at a hearing on 5 November.
What Rahm keeps and what he loses
Read more: Golf: Jon Rahm Leaving LIV Golf Over ‘Unacceptable’ LIV 2.0 Terms
Each of Rahm’s contracts with LIV will be terminated, releasing him from any further services or performance obligations. He also forfeits his equity in Legion XIII, the team he captained, where Front Office Sports said he was entitled to a 25 per cent stake.
In return, the rights to his name, image and likeness revert to him, and he keeps the “Rahmbo” and “Legion XIII” marks. He cannot use the Legion XIII name in another league such as TGL, the indoor competition co-founded by Tiger Woods and Rory McIlroy, and LIV keeps the historical content he appeared in.
Path back to the PGA Tour still unclear
Read more: LIV Golf Cleared to Reject DeChambeau, Cameron Smith Contracts
Rahm’s lawyer told the court on 7 October that he would not play in “LIV 2.0” in 2027 and beyond. Once his ties are formally cut, he will be free to talk to the PGA Tour, although PGA Tour CEO Brian Rolapp said last month there were no current plans to bring back the Returning Member Program that let Brooks Koepka rejoin in January.
Rahm reached a deal with the DP World Tour in May to keep his membership and stay eligible for next year’s Ryder Cup, BBC Sport reported. Front Office Sports said he will remain eligible to play on that circuit in 2027.
The two-time major champion won his third straight LIV season title in August and earned more than US$106 million in prize and bonus money across three seasons on the league, according to Front Office Sports.
LIV filed for bankruptcy on 8 September after Saudi Arabia’s Public Investment Fund stopped funding the circuit. BC Partners Credit is lined up to provide US$300 million in financing if it emerges, and LIV attorney Robert Fitzgerald told the court the tour should know by the end of the month whether it will cease operations or push ahead with LIV 2.0.
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