Sergio Garcia Wants to Terminate His LIV Contract in Court

Sergio Garcia has asked the New Jersey bankruptcy court to terminate his contract with LIV Golf. This has been reported by RTE, Golfweek, and Golf Digest, among others. The motion was filed on October 1 through his company, Even Par LLC; LIV had filed for Chapter 11 bankruptcy on September 8.

What Garcia’s attorneys say

In a six-page brief, they describe the contract as an “executory personal services contract”—that is, an ongoing service contract that “cannot be assumed without Garcia’s consent.” They argue that the termination is not objectionable because LIV itself stated that the contract was “not part of the business plan for the future.” Otherwise, tournament organizers, sponsors, and other partners would not know whether the Spaniard is free from competing obligations.

Important: Garcia does not contest the termination. He is merely seeking legal clarity—he wants the court to either declare the contract terminated or allow him to terminate it himself. His attorneys also make it clear that the motion is not a “final, irreversible decision” against a possible future with an LIV successor. Garcia is thus keeping his options open. The quotes are taken from news reports; we did not have access to the court documents.

Background: LIV 2.0 and the October 13 Deadline

The bankruptcy proceedings are intended to pave the way for “LIV 2.0.” After Saudi Arabia’s Public Investment Fund (PIF) announced in April that it would cease funding after the 2026 season, the league has been seeking new investors. According to reports, players are owed at least $45 million.

The London-based private equity firm BC Partners is set to finance the relaunch with a proposed $300 million deal. Under the plan, players will hold a 52.5 percent stake in the newly restructured league. CEO Scott O’Neil envisions a 2027 season with ten events, including five team events, and with significantly smaller prize money than before.

Read more here about LIV Golf’s bankruptcy filing.

According to RTE, for the financing to proceed, at least 50 percent of the players with financial claims must agree to participate starting in 2027—and they must collectively represent at least two-thirds of the total amount of the claims. The deadline is October 13. The Golf Channel reports that LIV has verbal commitments exceeding this threshold. However, big names like Jon Rahm, Bryson DeChambeau, and Cam Smith have not yet committed to the new league.

The court also appointed a seven-member creditors’ committee to represent the interests of unsecured creditors and help shape the restructuring. The only player on the committee is rookie Michael LaSasso. According to reports, Jon Rahm holds the largest individual claim, at approximately $7.5 million.

Garcia, 46, won the Masters in 2017, has 11 PGA Tour and 16 DP World Tour victories, and, according to RTE, plans to compete on the DP World Tour in 2027. He finished tenth in the 2026 LIV season standings.

Mass layoffs and millions at risk: LIV Golf’s bankruptcy filing has already had consequences.

A host venue also wants out

According to RTE, the Kooyonga Golf Club in Adelaide has filed for an expedited termination of its contract to host LIV, which was set for March 2027. The club states that it has not yet been paid as agreed and is demanding the return of approximately $134,000 in preparation costs. It is requiring LIV to make a decision by November 6 regarding whether the tournament will take place, with what budget, and featuring which players.

The event was planned as an interim tournament from March 18 to 21, 2027, with a prize purse of $30 million (4 million for the winner). South Australia’s Treasurer, Tom Koutsantonis, called a 2027 event “unlikely.” According to him, the state will not pay until after the event—so public funds are not at stake for the time being. With its request, the Kooyonga Golf Club openly questions whether the tournament will take place.

Outlook

The next hearing is scheduled for October 7. Australian Golf Digest also reports—as the sole source—that the PGA Tour has stated the exception allowing Brooks Koepka to return no longer applies, and players should expect a suspension of at least one year.