Two-time major winner Jon Rahm has reached a formal separation agreement to terminate his contract with LIV Golf, walking away from tens of millions of dollars to secure his release from the bankrupt circuit, according to federal court filings.
The agreement, submitted Wednesday in U.S. Bankruptcy Court for the District of New Jersey, releases the 31-year-old Spaniard from all future playing and promotional duties for the tour. Under the terms, Rahm surrendered all economic and monetary claims against LIV Golf, as well as his ownership stake in his team franchise, Legion XIII. In exchange, the circuit agreed to return his exclusive name, image and likeness rights, ESPN reported.
U.S. Bankruptcy Judge Michael B. Kaplan is scheduled to review and decide whether to approve the pact on Nov. 5.
Surrendering Millions in Unpaid Guarantees
Rahm initially joined the Saudi-backed league in December 2023 on an agreement widely reported to be worth more than $300 million. When LIV Golf filed for Chapter 11 bankruptcy protection on Sept. 8, bankruptcy filings listed Rahm as the circuit’s biggest unsecured creditor, owed roughly $7.5 million at that moment. However, ESPN reported that the total balance owed to him across the unfinished years of his deal exceeded $100 million.
During his three seasons competing on the tour from 2024 through 2026, Rahm dominated the circuit, capturing the individual points championship in all three campaigns and accumulating nearly $107 million in tournament prize money. Despite that run of form, his legal team signaled an imminent departure last week.
Attorney John Beck notified the court on Oct. 7 that the golfer had formally evaluated a restructured proposal to remain with the league for a planned revamp. “Mr. Rahm has independently reviewed the proposed terms of LIV 2.0 and has determined that those terms are unacceptable to him, and he will not be participating going forward in LIV 2.0,” Beck stated during that hearing.
Uncertain Future Across Men’s Professional Golf
The settlement grants Rahm the freedom to sign with competing tours, leagues and commercial partners without requiring prior approval from LIV Golf, NBC Sports reported. He also secured ownership of the trademarks “Rahmbo” and “Legion XIII,” though he is barred from using the Legion XIII name in another golf competition such as TGL, according to ESPN.
Rahm is scheduled to return to tournament play Nov. 5-8 at the DP World Tour’s Abu Dhabi Championship in the United Arab Emirates. He had previously bypassed last week’s Open de España in anticipation of the birth of his fourth child.
Whether Rahm can engineer a quick return to the PGA Tour remains unresolved. While the PGA Tour typically enforces a one-year suspension on players departing for LIV Golf, CEO Brian Rolapp previously extended a conditional return pathway to four major champions earlier this year. Brooks Koepka accepted those financial terms and rejoined in February, but Rahm, Bryson DeChambeau and Cameron Smith declined at the time, and Rolapp has indicated the return program will not be reopened.
LIV Golf’s long-term survival remains precarious after Saudi Arabia’s Public Investment Fund announced it would end its financial backing following the 2026 campaign. League attorney Robert Fitzgerald told the court that the tour will determine by the end of October whether it can continue operating alongside private equity firm BC Partners or shut down entirely. Players have until Oct. 25 to commit to the proposed LIV 2.0 format.
