By ED TRAVIS
It’s all about the money. LIV Golf came on the scene three years ago funded by the Saudi royal family’s Public Investment Fund (PIF) offering astronomical sums for top ranked players to defect from the traditional tours.
PGA Tour (PGAT) star Phil Mickelson was the first to jump followed by Dustin Johnson, Bryson DeChambeau and Brooks Koepka among others. All signed with the new league for sums north of $100 million. The PGAT responded by increasing prize money in some designated events and other bonus programs to retain as many players as they could.
LIV CEO Greg Norman predicted his league would stimulate the worldwide growth of golf both as a spectator sport and as a favorite pastime for untold numbers of Asians, Africans, indeed people of every demographic. The league continued to sign big name players with Jon Rahm at the head of the list.
Then the unthinkable happened.
In June of 2023 PGAT and LIV announced a merger agreement had been drafted and the golf world, not to mention PGAT players, was astonished. However, to date the specifics have not been agreed upon and in January 2024 the PGAT announced the Strategic Sport Group would inject up to $3 billion in a for-profit company with Tour members receiving stock for not defecting to LIV.
President Trump has even gotten into the impasse with a meeting at the White House bringing PGAT commissioner Jay Monahan, player directors Adam Scott and Tiger Woods together with PIF governor and LIV Golf Chairman Yasir Al-Rumayyan to get a reunification deal done. It not only didn’t happen but now after almost two weeks no one seems to be sure the status of the “Let’s Get Together” process.
Having no inside knowledge and knowing no one who does the most logical conclusion, remembering that all fans want is to see the best players teeing it up regularly against each other, is the money is getting in the way.
PIF/LIV bought their way to a seat at the table and for a time seemed as though their next step would be to take over professional golf but that is not the situation now. The PGAT has not given in, nor have Monahan and company given up.
The Saudi’s still have their money, almost one trillion (yes that’s a “t”), several dozen companies and investments around the world plus the reputation of being hard bargainers. LIV Golf is also not the only investment PIF has in sports, they also own the Newcastle United Football Club in the United Kingdom.
It seems to be clear the momentum may have swung away from the upstart league.
Part of the change may be LIV players fully realizing the loss of their personal playing legacy for jumping to a league that’s a series of golf events some call team golf exhibitions since they are only 54 holes with 54 players and there is no cut so everyone gets paid no matter how they play. Not exactly hand sweating stomach-churning competition on the order of traditional professional tours.
Though not proof of trouble in the world of LIV this season no big names left the traditional tours to sign for LIV’s mega millions so possibly some reassessing in going on in the minds of those remaining committed to the “old” tour.
The LIV format also has kept members from earning Official World Golf Ranking points putting them in a bind trying to get into majors though the U.S. Open and British Open have said they will make a spot available.
LIV Golf was able to sign a TV contract with FOX Sports, but viewership has been miniscule (a few tens of thousands). Ratings should increase when LIV comes to the U.S. for the five tournaments scheduled here this year though that may not settle anything for them. Professional golf is an entertainment business depending on fans, fans that not only buy tickets but more importantly advertiser’s products plus support the millions of dollars donated each year to local charities in tournament towns.
The younger tech-savvy fan LIV who is supposed to be attracted to LIV are not the demographic big money advertisers want for products and services targeted at more affluent consumers.
New LIV Golf CEO Scott O’Neal proclaims as many over the top statements as Greg Norman did, none of which are drawing the two sides closer together. Recently O’Neal opined, “I think that right now we are going to the moon and back. I’m very confident in where we are in this business and the interest we have currently.” He also made the jaw dropping comment the best players in the world are now competing on the LIV.
Getting back to the money, LIV Golf is nowhere near being profitable and is burning dollars at a tremendous rate. Contract renewals for the stars they signed originally are coming up for renewal so more money will have to be committed. Is it any wonder they want to merge with the PGAT?
It looks like something must give to get reunification done. Was the first step getting rid of Greg Norman?
