Jon Rahm will not participate in LIV Golf's proposed restructuring plan, known as LIV 2.0, according to his attorneys. The announcement emerged during a bankruptcy hearing in New Jersey, where legal representatives stated that Rahm has reviewed the new conditions and found them unacceptable. This development places the league's top player outside the framework intended to save the organization from insolvency.
The dispute occurs against the backdrop of LIV Golf's Chapter 11 bankruptcy filing, which took place last month in New Jersey. The financial collapse follows the Public Investment Fund (PIF) ending its monetary commitment to the league in April. The Saudi sovereign wealth fund halted funding to redirect capital toward domestic projects and manage financial pressures arising from the regional war with Iran. Following this decision, PIF governor Yasir Al-Rumayyan resigned from LIV's board.
Rahm's departure from the proposed plan highlights the instability surrounding the league's future. When Rahm joined LIV nearly three years ago, it marked a significant shift after he had previously dismissed the organization. Rumors at the time valued his deal between $300 million and $600 million. Bankruptcy filings indicate that the league owes millions in unpaid compensation to several top players, including Rahm, Bryson DeChambeau, Dustin Johnson, and Cam Smith. Reports suggest Rahm is owed more than $7 million, though his attorneys noted he was willing to fulfill the terms of his original contract.
To survive the bankruptcy, LIV is relying on a restructuring proposal called LIV 2.0. Under this plan, London-based private equity firm BC Partners would fund a relaunch for 2027. BC Partners has financial ties to player agency GSE Worldwide. A key component of the proposal involves granting players majority ownership of the league. PIF provided $50 million to help LIV pay bills and continue operations during the bankruptcy case, but the long-term viability rests on this new structure.
The league has already experienced significant operational disruptions. Between 2021 and 2026, LIV spent an estimated $5 billion to $8 billion. The organization has laid off most of its operational staff and left event contractors waiting for payment. Additionally, LIV faces a lawsuit from the Premier Golf League alleging breach of confidence and conspiracy. CEO Scott O'Neil initially stated that the LIV calendar would not be altered after PIF pulled funding, but the league subsequently cancelled its originally-scheduled championship weekend and moved it up by one week.
Rahm is not the only high-profile player to leave the tour. Brooks Koepka was the first major name to exit, returning to the PGA Tour late last year, with Patrick Reed following shortly after. Rahm remains a two-time major champion, having won the 2021 U.S. Open and the 2023 Masters. He and Tyrell Hatton were the only LIV players on Team Europe during last year's Ryder Cup.