The LIV Golf League Signs Jon Rahm to Multiyear Contract Worth Over $300 Million
The LIV Golf League has dealt another blow to the PGA Tour by signing Masters champion Jon Rahm to a multiyear contract worth more than $300 million. Rahm, a former world No. 1 golfer and two-time major champion, is a significant signing for LIV Golf due to his success and popularity. This move comes at a crucial time as the PGA Tour and Saudi Arabia’s Public Investment Fund are in negotiations to merge their commercial properties, including LIV Golf. Rahm’s decision raises questions about the impact on these negotiations, his future in major championships and the Ryder Cup.
Why Did Rahm Decide to Join LIV Golf?
Rahm had been pursued by LIV Golf for nearly two years but was initially hesitant due to the unique format of the new circuit. However, sources indicate that format changes may be made to accommodate Rahm’s preferences. After meeting with LIV Golf CEO Greg Norman, Rahm eventually made the decision to join. He withdrew from his commitment to TGL, another golf league, and was excluded from the field of the American Express tournament.
Impact on PGA Tour-Saudi PIF Merger Negotiations
Rahm’s addition to LIV Golf comes at a critical time as the PGA Tour and Saudi Arabia’s Public Investment Fund are finalizing negotiations for their merger. This signing gives the Saudis more leverage in the negotiations and sends a clear message to the PGA Tour. If a deal is not reached, the Saudis are prepared to invest even more in LIV Golf. This signing may be a sign of more to come.
Rahm’s Previous Remarks about LIV Golf
While other PGA Tour players have criticized LIV Golf, Rahm had remained quiet and had not spoken negatively about the league. However, his decision to join is surprising considering his previous statements about playing for the love of the game and competing against the best in traditional formats.
Impact on Rahm’s Playing Status
Rahm’s recent major victories ensure his eligibility to compete in the four majors through at least the 2027 season. The governing bodies of the majors have not banned LIV Golf players from participating, but adjustments to exemptions and qualifications may be made.
Effect on Ryder Cup Participation
Rahm has been a key player for the European team in the past three Ryder Cups. His commitment to LIV Golf raises questions about his future participation. Other players who have joined LIV Golf were ineligible for the European team, and this may impact Rahm’s ability to play in the 2025 Ryder Cup.
PGA Tour and LIV Golf’s Agreement
Initially, the PGA Tour and LIV Golf agreed not to recruit players from each other. However, this provision was removed due to concerns raised by the U.S. Department of Justice’s Antitrust Division. The PGA Tour is now under pressure to strike a deal with the Saudis, as more players may follow Rahm’s lead and join LIV Golf.
Future Implications for the PGA Tour and Commissioner Jay Monahan
Losing Rahm to LIV Golf highlights the Saudis’ financial power and determination to make the league successful. The PGA Tour and Commissioner Jay Monahan face immense pressure to reach a deal with the Saudis to prevent further defections. The future of the PGA Tour and Monahan’s position as commissioner may depend on the outcome of these negotiations.