"Unfortunately, there's been a little bit — possibly a little too much — bad blood between Greg and maybe the governing bodies," said Rahm, who joined LIV in December 2023.
"And to have somebody outside of that might help the situation."
O'Neil was CEO of Merlin Entertainments and in charge of business operations of more than 140 of the company's attractions. He was previously CEO of Harris Blitzer Sports & Entertainment, whose holdings include the NBA's Philadelphia 76ers and the NHL's New Jersey Devils.
While LIV Golf returns next month for its fourth season, O'Neil's priority is likely to be finding a resolution to talks between Saudi Arabia's Public Investment Fund — LIV's financial backer — and the PGA Tour.
PGA Tour Enterprises and PIF are in discussions about the Saudi sovereign wealth fund becoming a minority investor, although it remains unclear how that would affect the two leagues or any path toward reuniting golf's best players after an acrimonious split.
"I think having an outsider — I say outsider because he has not been involved — could be a very good thing when it comes to him sitting down at the table with the other governing bodies," Rahm said.
"I think an outside perspective, and possibly a less threatening image, might help that, as well."
Rahm was speaking after the second round of the Dubai Desert Classic, where he missed the cut.
