Key Takeaways
- Jon Rahm, a prominent golfer, is leaving the LIV Golf tour due to unsatisfactory terms.
- Rahm, along with Bryson DeChambeau, was one of the most notable players to defect from the PGA Tour.
- LIV Golf is attempting to relaunch as 'LIV 2.0' with new investors but faces significant financial challenges.
Golfer Jon Rahm has announced his departure from the LIV Golf tour, citing 'unacceptable' terms, according to his lawyer. This move comes as the breakaway tour attempts to relaunch under new management.
Rahm, a former world number one and double major winner, was one of the most high-profile players to defect from the PGA Tour to join the Saudi-backed league. His decision is seen as a significant blow to LIV Golf's prospects.
LIV Golf, launched in 2022, has been embroiled in financial troubles, filing for bankruptcy protection last month. The tour is now trying to relaunch as 'LIV 2.0' with new investors, including BC Partners Credit, which has pledged an initial $300 million.
Rahm's lawyer, John Beck, stated that 'advanced discussions for a consensual separation agreement of Mr. Rahm and LIV' are ongoing. However, if a resolution is not reached, Rahm intends to pursue his objection through legal channels.
Documents from bankruptcy filings reveal that LIV Golf owes between $500 million and $1 billion in estimated liabilities to at least 1,000 creditors, including Rahm, who holds the largest unsecured claim of over $5 million.
Despite the financial challenges, LIV Golf is planning a shorter schedule with reduced prize money, featuring tournaments across five continents. The tour aims to launch in 2027, with locations including Australia, South Africa, Mexico, England, Hong Kong, and the US.
Rahm's future plans remain unclear, as he continues to play on the DP World (European) Tour. He recently announced that he would skip the upcoming Spanish Open to attend the birth of his fourth child.
The PGA Tour has stated that it currently has no plans to offer LIV players a pathway back. However, widespread reports suggest that several LIV stars, including Rahm, are linked to potential returns to the US-based PGA Tour.
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 to him, and he will not be participating going forward in LIV 2.0.
John Beck, Rahm's lawyer
