Jon Rahm has officially severed ties with LIV Golf, walking away from approximately €134 million ($150 million USD) in unpaid contract money while retaining full ownership of his team, Legion XIII. El Periódico reported that the Spanish golfer reached the agreement during a U.S. Bankruptcy Court hearing in New York on Thursday, where Judge Michael B. Kaplan approved a motion to reject existing contracts for 19 players.
Court Approval Rejects Nineteen Contracts
Judge Michael B. Kaplan signed off on the motion during Thursday’s proceedings, targeting current deals that the Saudi-backed circuit argued failed to match the financial structure planned for its upcoming relaunch. The ruling frees 19 golfers—including prominent names such as Bryson DeChambeau, Dustin Johnson, Bubba Watson, and Lee Westwood—to explore other professional opportunities. El Periódico noted that the circuit’s leadership categorized these prior agreements as incompatible with the incoming operational framework.
Intellectual Property Terms for Legion XIII
While Rahm sacrificed the remainder of his guaranteed compensation package, the settlement grants him control over his team’s brand assets. LIV Golf relinquished nearly all future rights concerning Rahm’s name, image, likeness, and trademarks. In exchange, the Basque player secured the intellectual property and registered trademarks for Legion XIII, according to El Periódico and Diario de Burgos.
Chapter 11 Filing and New Financial Backing
The circuit initiated bankruptcy proceedings under Chapter 11 to facilitate its restructuring, known internally as LIV 2.0. The Public Investment Fund of Saudi Arabia previously poured $5 billion USD (roughly €4.5 billion) into the venture over four years before withdrawing its financial support. To stay afloat, the organization secured new funding from BC Partners Capital, forcing the wholesale cancellation of player agreements so that participants can be re-signed under revised terms.
DP World Tour Hardens Stance on Circuit Return
As the legal restructuring unfolds, traditional golf bodies are tightening restrictions on players associated with the breakaway league. The DP World Tour confirmed that any golfer who commits to the circuit will face immediate ineligibility for regular tour events and permanent exclusion from the Ryder Cup selection process.
Legal Warning Issued in New York Court
Attorneys representing the circuit responded directly to the European tour’s stricter eligibility rules during Thursday’s bankruptcy proceedings. Robert Fitzgerald warned the U.S. Bankruptcy Court that the DP World Tour’s timing appears designed to disrupt their corporate reorganization. “And francamente, nos preocupa bastante,” Fitzgerald stated through a court interpreter, adding that the timing represents a clear attempt to interfere with player commitments and ongoing restructuring efforts.
Upcoming Deadlines in Bankruptcy Proceedings
The U.S. Bankruptcy Court scheduled the next hearing for October 20. Meanwhile, the deadline for players to commit to the reorganized circuit under terms negotiated with BC Partners falls on October 25.
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