Jon Rahm has officially departed LIV Golf, agreeing to a separation that requires him to forfeit the remainder of an estimated $100 million in compensation. The two-time major winner will retain his name, image, and likeness rights as part of the agreement, according to court records cited by ESPN.
Rahm's exit marks a significant shift for the league, which filed for Chapter 11 bankruptcy in New Jersey last month. During a bankruptcy hearing last week, Rahm's attorneys stated that he would not participate in what the league has termed "LIV 2.0," citing terms they described as "unacceptable." The move follows a period of financial strain for LIV, which spent an estimated $5 billion to $8 billion between 2021 and 2026.
The league's financial troubles intensified after Public Investment Fund (PIF) halted funding in April to redirect resources toward domestic projects and manage pressures from the regional war with Iran. Following the funding decision, PIF governor Yasir Al-Rumayyan resigned from LIV’s board. Bankruptcy filings indicate that the league owes millions in unpaid compensation to several top players, including Rahm, Bryson DeChambeau, Dustin Johnson, and Cam Smith.
Rahm's decision to leave is notable given his dominance within the league; he won the individual title in each of the last three years. His initial joining of LIV nearly three years ago had drawn significant attention after he publicly dismissed the organization before accepting a deal rumored to be between $300 million and $600 million. Brooks Koepka was the first major name to depart late last year, returning to the PGA Tour, with Patrick Reed following shortly after.
The DP World Tour, formerly the European Tour, announced earlier this week that LIV players would no longer be permitted to compete in its events. Previously, LIV golfers could play on the DP World Tour provided they were in good standing and paid fines for calendar conflicts, costs that PIF covered until 2025. Rahm and Tyrrell Hatton were the only LIV golfers on Team Europe during last year's Ryder Cup.
LIV has recently laid off most of its operational staff and left event contractors waiting for payment. The league also faces a lawsuit from the Premier Golf League alleging breach of confidence and conspiracy. While LIV CEO Scott O'Neil initially stated that the calendar would not be altered after the PIF funding pull, the league's originally-scheduled championship weekend was canceled and moved up a week. Remaining golfers have until Oct. 25 to decide whether to stay with LIV 2.0 or leave, with the possibility that the league may cease operations.