By Frank Pingue
Oct 7 (Reuters) - 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 Chapter 11 bankruptcy.
Rahm's attorney John Beck told a bankruptcy hearing on Wednesday that the two-times 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 organizers and sponsors as their LIV contracts go unpaid.
LIV has already agreed to terminate Sergio Garcia’s contract after determining that the league would not honour its terms, and 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.
According to sources with knowledge of league operations, conversations with players regarding their participation in LIV Golf 2.0 remain on track, and statements made in court today do not change the trajectory, timeline, or momentum of the transaction.
Rahm, one of the most high-profile players to join LIV Golf, has won three consecutive season-long individual titles on LIV since joining the circuit in late 2023, eight months after winning the Masters for his second major title.
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 $7.5 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 $300 million, remains subject to bankruptcy court approval and customary conditions.
BC Partners Credit, which provides financing to middle-market companies, said the funding would support what it described as the next phase of LIV Golf, under which players would become equity owners of both the league and its teams.
(Reporting by Frank Pingue in Toronto, additional reporting by Dietrich Knauth in New YorkEditing by Toby Davis)
