Sergio Garcia isn’t taking LIV Golf to court to fight. Instead, the 46-year-old is asking a bankruptcy judge to bring his LIV contract to an official end. By doing so, Garcia hopes to clear up the legal uncertainty surrounding his deal and finally move on with his career without having to wonder what his LIV contract means for his future.
Watch What’s Trending Now!
Garcia’s lawyers at Baker & McKenzie filed a limited response on September 30, 2026, in the U.S. Bankruptcy Court for the District of New Jersey. The filing, reported by financial journalist Sujeet Indap on X on October 1, relates to LIV Golf New Jersey LLC, Case No. 26-20189—the Chapter 11 bankruptcy proceeding LIV Golf filed on September 8, 2026.
LIV filed for bankruptcy after Saudi Arabia’s Public Investment Fund stopped providing funding beyond the 2026 season. In its bankruptcy filing, the league reported assets of $100 million to $500 million against liabilities of $500 million to $1 billion. LIV is now seeking to restructure with BC Partners’ support while also working toward a revamped version of the league, widely referred to as “LIV 2.0.”
As part of the restructuring, LIV asked the court to reject several executory contracts, including agreements with Jon Rahm, Bryson DeChambeau, Phil Mickelson, Dustin Johnson, Tyrrell Hatton, Cameron Smith and Garcia. Garcia does not oppose contract rejection. His concern, however, is what happens once that rejection takes effect.
Under U.S. bankruptcy law, rejecting a contract is, in legal terms, a breach rather than a termination. That distinction is at the heart of Garcia’s filing. His lawyers cited Section 365(g) of the Bankruptcy Code and the Supreme Court’s decision in Mission Product Holdings v. Tempnology to support that position. In practical terms, LIV’s decision to stop performing under the contract does not mean the agreement itself is formally over.
Without an official end to his contract, tournament organizers, sponsors, and other business partners may not be sure whether Garcia is free to work with them. According to the filing, tournament organisers, sponsors, and other partners face significant uncertainty because professional golfers often arrange tournaments, sponsorships, and business commitments months ahead. With a limited window to compete at the highest level, Garcia is seeking to resolve that uncertainty as quickly as possible.
Sergio Garcia is asking the court for one of two outcomes. First, he asks the court to explicitly state in any order approving the rejection of his agreement that the contract is terminated and that he no longer remains bound by its terms. If the court declines to do that, Garcia is asking for the automatic bankruptcy stay to be modified so he can terminate the agreement himself under the contract’s own terms.
Garcia is also preserving his right to take legal action if his contract is rejected or otherwise ended. He is reserving the right to challenge any rights or licenses that LIV claims will survive the bankruptcy process, keeping open the possibility of further legal disputes over what remains enforceable after the restructuring.
Importantly, Garcia is not ruling out working with a future version of LIV. His filing makes clear that he wants to keep his options open with LIV 2.0 while seeking a clean legal break from his current agreement. For now, Garcia’s goal is simply to establish that his existing contract has officially ended, giving him clarity over his future without closing the door on a potential relationship with LIV down the line.
Garcia signed with LIV Golf in 2022 and has served as captain of Fireballs GC ever since, even signing a multi-year contract extension in December 2025. That makes his latest move a notable change of direction, coming less than a year after he committed to the league for the long term.
On the course in 2026, Garcia finished eighth in LIV’s individual standings, highlighted by a third-place finish at LIV Indianapolis in August and a fourth-place finish in Andalucía earlier in the season. His filing also underscores the broader uncertainty facing LIV’s players as the league works through its restructuring. Bryson DeChambeau was still undecided about remaining with LIV 2.0 as of September 29, while Cameron Smith has said he needs more clarity before deciding on his future. Meanwhile, LIV’s restructuring plan could give players a majority ownership stake in the league, adding another potential factor to their decisions about what comes next.
The bankruptcy court has not yet ruled on Garcia’s request, with a hearing scheduled for October 7, 2026. Judge Michael B. Kaplan will decide whether Garcia gets the clear break from his contract that his lawyers are seeking or whether he must take additional steps to end the agreement. Garcia is not seeking to sue LIV or block its restructuring; he is simply asking the court to confirm that his current contract is over. Ultimately, his filing is about removing the legal uncertainty surrounding his LIV deal and giving him a clear understanding of where he stands as he considers the next stage of his career.