McIlroy: Impending legal defeat for LIV players 'changes the dynamic'
The DP World Tour had sought to suspend and fine players for playing in a LIV event without their authorisation.
The 13 players sought to ensure their ability to participate in future events in front of an arbitration panel in London in February.
But The Times said the panel has ruled that the DP World Tour, formerly the European Tour, will be able to suspend and fine players who participate in conflicting events without a release and the initial £100,000 fines have also been upheld.
A formal decision from the panel is expected on Thursday, when the opening round of the Masters begins at Augusta National.
The verdict will likely lead to the LIV players having to quit the DP World Tour to avoid sanctions, in the same way they did after being banned by the PGA Tour.
Asked about the development during his pre-Masters press conference at Augusta National, McIlroy said: "It looks like it's not going to be announced until Thursday, so I don't really -- I don't know if I can comment on it too much.
"But you know, if that is the outcome, then that certainly changes the dynamic of everything a bit."
McIlroy has been at the forefront of the PGA Tour's efforts to fight back against the LIV rebels, playing a central role in the creation of the tour's new formats and purses.
Asked whether he agreed with the panel's decision, the Northern Irishman added: "I'm not a lawyer. But if the arbitration panel think that's the right decision, then I have to go by what they say."
LIV players are competing alongside PGA Tour players at the Masters for the first time since the defections to the Saudi-backed tour.
The case arose when players requested releases from the DP World Tour in order to play the inaugural LIV Golf event in Hemel Hempstead last June.
Those requests were denied but the players competed in LIV's lift-off event regardless.
The DP World Tour retaliated with £100,000 fines and bans from the Scottish Open.
But an appeal from Ian Poulter, Adrian Otaegui and Justin Harding saw the punishments suspended pending an appeal.
That allowed LIV players to continue playing on the DP World Tour, with Otaegui winning the Andalucia Masters in October.
Ten more LIV players then joined the case, which is separate from the anti-trust lawsuit between LIV and the PGA Tour currently in the courts in the United States.
The verdict also appears to close the door on any LIV players playing in the Ryder Cup in Rome later in the year.
Best are together again
Players have been keen to talk down any suggestion of the conflict souring this week's tournament and McIlroy echoed that sentiment saying he was not surprised that the atmosphere between the two camps was amicable.
"It's not as though I don't see some of these guys at home, on weeks off, I see Brooks (Koepka) quite a lot, I see DJ (Dustin Johnson) quite a lot, we all practice at the same place," he said.
"It's inter-personal relationships -- that's just how it goes. This week and this tournament is way bigger than any of that I feel and it is just great that all the best players in the world are together again for the first time in what seems to be quite a while."
A spokesperson for the DP World Tour said: "Out of respect for the confidentiality of the process conducted by Sport Resolutions, we will make no comment on any aspect of the arbitration until the decision is formally announced."
