As Jon Rahm splits with LIV, what happens to his massive deal? | News

Jon Rahm and LIV Golf are no more.

The former World No. 1 reached a separation agreement with the breakaway league on wednesdaywhich marks an almost official end to his tenure less than three years after his high-profile signing. If and when the separation agreement is approved by New Jersey Bankruptcy Court Judge Michael B. Kaplan on Nov. 5, Rahm will be free to play wherever he can get a seat, while LIV will be free of its largest unsecured creditor.

The hundred million dollar question, then: What happens to the massive amounts of money still owed to Rahm? LIV’s Chapter 11 bankruptcy filings revealed that Rahm was owed $7.5 million from a single period alone, a small percentage of what was more than $100 million in current and future payments left on his deal.

Through this agreement, those debts will disappear in the wind.

The split is significant for both sides. When Rahm signed with LIV he was the reigning Masters champion and arguably one of the few best players in the world; he immediately became LIV’s best player and won each of the league’s three individual titles in subsequent seasons. Rahm was handsomely remunerated for his skills, signing an initial contract worth more than $300 million (specific figures were never released) and earning more than $100 million in prize money over his three seasons.

But the league’s outlook – and the arithmetic – changed when its financial backers, the Saudi PIF, suddenly withdrew funding earlier this year. LIV stumbled until the end of its season, canceling events, filing for bankruptcy and leaving most of its workforce, but the new investors worked diligently to assemble a vision for “LIV 2.0” to launch by 2027.

Rahm’s attorney, John Beck, has made it clear that he will not be part of that effort; Beck said last week that Rahm had studied the new league’s offer “and has determined that these terms are unacceptable to him.” And so here we are.

What Rahm returns from LIV? For golf fans, the biggest news is their freedom play elsewhere. That sparked a lot of speculation about the potential he would play on the DP World Tour next season — more questions about when and how the PGA Tour would allow him to reunite.

Rahm also regains the rights to his name, image and likeness, including his logo (the “Rahmbo brand”) plus the logo to his Legion XIII team, although it is interesting that the agreement specifies that Rahm cannot use that Legion XIII in another golf league such as TGL. (This would be unlikely for several other reasons.)

As for what LIV gets from Rahm? Freedom from their debts, especially. Rahm will have no further claims against the league or its affiliates. He also no longer has equity in his Legion XIII team, which he launched as captain of the league’s 13th expansion team and was a partial owner. Rahm was listed as his largest unsecured creditor; it will now be off their books.

The future of the league remains in flow. Several players have joined Rahm in expressing their intention to leave. And in a hearing Wednesday, LIV lawyers said they expect to know by the end of the month whether they will press ahead with the current vision for LIV 2.0 or fold.

Rahm’s separation agreement will become final if approved by Kaplan on Nov. 5, the same day he is expected to play his next competitive round; the Abu Dhabi Championship starts that week. He is expected to finish his season the following week at the DP World Tour Championship.

We’ll see what comes next.

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