LIV Golf Struggles to Rebuild as Star Player Jon Rahm Rejects Restructuring Deal

2026-10-08 companies

Riyadh, Wednesday, 7 October 2026.
Following Chapter 11 bankruptcy, LIV Golf faces turbulence as star Jon Rahm exits, rejecting a restructuring plan that attempts to swap guaranteed contracts for a 52.5% player equity stake.

Rahm Exits Amidst Bankruptcy Turbulence

Jon Rahm is exiting LIV Golf after deeming the league’s reinvention plan unacceptable, marking a significant blow to the effort to create a viable post-bankruptcy entity [1]. His attorney confirmed on Wednesday, 7 October 2026, that the Spanish star will not participate in the league going forward and is engaged in advanced discussions for a consensual separation agreement [1]. This departure follows the official release of Sergio Garcia from his LIV Golf contract by a New Jersey bankruptcy court on 6 October 2026 [2]. The upheaval occurs as LIV Golf fights to survive Chapter 11 bankruptcy protection filed in September 2026 [1][3]. While Garcia’s contract stay was lifted, Rahm’s contract hearing has been adjourned until 5 November 2026 [2][3].

BC Partners Injection and Equity Shift

To facilitate emergence from bankruptcy, BC Partners Credit announced an initial investment of $4 million as part of a targeted $300 million funding package [5][7]. This restructuring support agreement was finalized late on 5 October 2026, aiming to fund operations for a potential 2027 season [3][6]. The financing plan requires approval from the U.S. Bankruptcy Court in the District of New Jersey to proceed [8]. LIV Golf CEO Scott O’Neil stated that the organization is delivering on major milestones despite the funding drying up from the Saudi Public Investment Fund [6][7]. The Saudi fund had provided over $5 billion in support since the league’s 2022 launch before withdrawing financial backing following the 2026 season [5][6].

Restructuring Terms and Player Equity

Under the proposed restructuring plan, ownership of the reorganized parent company would be split with 52.5% allocated to players [4][7]. New investors, including BC Partners, are set to hold 45% equity, while management will receive the remaining 2.5% [7]. The sum of these equity stakes equals 100 percent of the reorganized entity [4][7]. This pivot aims to transition the league from a Saudi-type business plan to a player-owned, team-focused model [6][7]. Players are being offered real and actionable ownership in the league and teams to align stakeholders for long-term success [5].

Outstanding Liabilities and Player Claims

Court documents identify significant liabilities, with 27 top-tier creditors owed a combined $64.2 million [7]. Jon Rahm is listed as a top outstanding balance holder at $7.47 million, followed by Bryson DeChambeau at $5.77 million [7]. The combined claims of the top two creditors total 13.24 million dollars [7]. Other notable claims include Dustin Johnson at $5.49 million and Cameron Smith at $4.84 million [7]. LIV Golf is currently contesting specific debt claims, flagging DeChambeau’s claim as contingent [7]. Total liabilities are estimated between $500 million and $1 billion against assets of $100 million to $500 million [7][8].

Critical Deadlines and Hearings

LIV Golf has extended its player commitment deadline to 25 October 2026 for golfers to commit to the league’s future [2][5]. Additional funding agreements beyond the initial injection must be finalized by 2 November 2026 [7]. A court hearing regarding Jon Rahm’s adjourned contract is scheduled for 5 November 2026 [3]. The league plans to develop a 2027 season consisting of a 10-tournament schedule, with 50% of events held internationally [5][8]. However, the PGA Tour has stated it will not negotiate with current LIV players until they are legally free of their contracts [3].

Sources

Sports Business LIV Golf