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Jon Rahm next to a sinking ship made of money
LIV Golf is hoping to stay alive after finding a new financial backer, but it has lost one of its biggest names after Jon Rahm announced he won’t be sticking with the organization. That development could spark an existential crisis, as there’s a contract clause that gives the investment firm that’s come to its rescue the right to back out if it continues to bleed its biggest names.
It’s been a couple of months since LIV Golf wrapped up its fifth season, one where the action on the course was firmly overshadowed by the drama concerning its future after Saudi Arabia’s Public Investment Fund abruptly announced it was pulling the plug less than three months after it got underway.
The rest of the schedule unfolded under a cloud of uncertainty. What was supposed to be the final event of the season was ultimately canceled due to financial constraints, and in September, the organization announced it had filed for bankruptcy, a move that was positioned as a necessary maneuver to restructure after finding a new backer in the form of BC Partners Credit, an investment firm based in New York City.
We’ve gotten some new insight into what LIV Golf 2.0 may look like in the form of a term sheet that outlines the intricacies of an agreement that will theoretically result in a $300 million injection, although it may be far from a done deal based on a bit of a bombshell that dropped on Wednesday.
Jon Rahm’s decision to leave LIV Golf could threaten the pending deal with its new investment partner
Bryson DeChambeau is probably the most marketable name LIV Golf has on its roster, and while he hasn’t officially committed to the reboot, there’s a fair amount of evidence that suggests that will end up being the case.
Jon Rahm probably sat behind him on that list, and if you noticed I opted for the past tense there, that’s because the two-time major winner announced he will be striking out on his own on Wednesday due to the “unacceptable” terms of the LIV 2.0 arrangement.
“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.” @TheAthletic
— Gabby Herzig (@GabbyHerzig) October 7, 2026
It’s a tough loss from an optics standpoint, but it’s one that could also have some major repercussions when it comes to LIV Golf’s agreement with BC Partners.
The aforementioned term sheet features a clause that is certainly worth pointing out in the wake of the development, which states it hinges on “execution of new player agreements consistent with the LIV 2.0 business plan that include players required by BC Partners.”
It’s unclear what players are on that list, although it seems pretty safe to assume Rahm would be one of the top candidates for inclusion due to his profile.
He’s not the first person to sever ties (Sergio Garcia was granted a release after asking for his contract to be terminated), and it’s safe to wonder if other golfers will follow suit due to the declining cachet stemming from the departure of one of the league’s top players.
The bankruptcy proposal is slated for potential approval at a hearing scheduled for October 14th, and it will be very interesting to see how things develop over the course of the next week.