It's no secret that LIV Golf is reportedly exploring a bankruptcy filing in the United States, so what would that mean for the players?
One way or another, a bankruptcy filing would be complicated. And it’s either a comedy or a drama, depending on whether or not it’s your life. Take Jon Rahm and Bryson DeChambeau, for instance.
Rahm supposedly had a contract worth approximately $300 million spread out over multiple years, plus a signing bonus. Say it’s five years. That could be $60 million each year. Or it could be less if the signing bonus was part of the overall compensation.
At the PGA Championship, he said the contract was more or less ironclad and that he did not see a way out of it, nor was he looking for one. But if there’s a bankruptcy, how much of that $300 million has he been paid, and how much is he still owed?
If Rahm doesn’t get paid the rest of the money, you can bet he will be ripping that piece of paper up into little bits. Steam will be blowing out his ears. If you think he got mad at hitting a bad shot, you haven’t seen anything. He will be more than explosive, and with good reason.
He will have jumped ship from the PGA Tour, which he seemed to really like, to join an upstart group, thinking it was money he might never make in his lifetime, only to have the deal canceled. For his trouble, he will lose some of his prestige and his good name in many markets. That’s because he is damaged goods in the eyes of many golf fans.
DeChambeau’s situation is slightly different. He has what has been reported as a $125 million contract with LIV, and it expires at the end of 2026. Supposedly, he’s been negotiating with LIV for a new deal and has been asking for $500 million. But that was before the rumors of LIV’s demise surfaced. While he may be in a good negotiating position due to his popularity, if LIV isn’t paying him anymore, he will have to get that from a new source. He'd better hope that he gets paid for this season.
In one regard, DeChambeau may be in a better position because he has probably been paid most of his original contract.
Now, a similar situation will play out for Phil Mickelson, Dustin Johnson, Bubba Watson, Cameron Smith, Sergio Garcia, and the rest. Those with contracts ending in 2026 have the option to stay with LIV and hope that another group or entity takes over LIV's sponsorship. Or that someone wants to partner with one of the stars on his team. However, that is highly unlikely.
But there’s a silver lining for DeChambeau, Rahm, and the rest. If LIV does file for bankruptcy, a Chapter 11 bankruptcy in the U.S., their contracts will likely be canceled. That’s usually what happens.
The silver lining is that a LIV bankruptcy releases the players. It frees them up to rejoin tours around the world.
And there’s more bad news. The Saudi PIF is reportedly withdrawing funding from the Asian Tour as well. They are taking it out of purses this year and presumably not funding that tour in 2027.
There may be some individuals who end up being hurt because they made acquisitions based on contracts they had with LIV. They’ve been promised money that they won’t receive, and worst case, they’ve gone out and bought planes or boats or five vacation homes or an island in the Maldives. One hopes not the latter.
In the case of DeChambeau, he said LIV money would allow him to do things for charity in the California town where he was raised. That may be harder to do or harder to continue. Or charities may not receive the kind of support that he was hoping to give. There are always unintended consequences in situations like this.
But bad business decisions and judgments are made every day, and as far as the players and LIV Golf, hopefully, they got enough out of it that it doesn’t disrupt the rest of their lives. Players will survive it, and they may even prosper.
Julius "Dr. J" Erving, George Gervin, Artis Gilmore, and Moses Malone played for the American Basketball Association before it folded and merged with the NBA. Joe Namath, Len Dawson, Jim Otto, George Blanda, and others played for the AFL before it became part of the NFL. And one day, Jon Rahm, Bryson DeChambeau, Phil Mickelson, Dustin Johnson, Bubba Watson, and others may be mentioned in a similar way regarding the time that another golf league challenged the PGA Tour.
So, is it a comedy, a comedy of errors or a just fodder for a soap-opera drama? It depends on whether or not it’s your life.
While Rahm may still be owed millions, the smart move for him would be to walk away. Eat some humble pie and start making new deals as a past Masters and U.S. Open champ, and then rejoin the European Tour and the PGA Tour.
And Greg Norman? He has his money. He got out while the going was good.
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