You thought the war on LIV golf was over? You were in error.
Although 2023 was meant to be the year of peace, tensions are still present as
evidenced by a discreetly missed deadline on New Year’s Eve.
On June 6, the earthquake occurred at approximately three in the afternoon.
Golf’s rival groups, the PGA Tour and its junior partner in Europe,
had made a covert deal with LIV Golf to put an end to hostilities and cooperate for the benefit of the game.
When This is a two-pronged move meant to put pressure on the Saudis for a larger monetary settlement and preserve some face following the blow to their reputation that followed the U-turn.
Before Rahm, Mickelson, Smith, Johnson, and Mickelson competing against McIlroy, Spieth, and others outside of the majors, we are most likely looking at 2025 at the earliest.
held its first tournament in St. Albans a year ago, the force of the
U-turn was as devastating as the declaration of war.
Before LIV Golf CEO Yasir Al-Rumayyan and PGA Tour commissioner Jay Monahan appeared together in a New York television broadcast, only a select group of influential people knew.
Those who knew the PGA Tour was not for turning and made their decisions accordingly
were widely shocked and incensed by the announcement. The PGA Tour board member who had served as Monahan’s spokesperson among the players, Rory McIlroy, immediately resigned.
Jordan Spieth lamented the players’ lack of faith in the tour’s leadership.
Eventually, Monahan realized that the only course of action was entente cordiale.
No matter how unthinkable it seemed at the time when he was criticizing the Saudi regime for its record on human rights and its sportswashing. Or at least that was the impression he gave us.
After six months, there has been no progress toward a resolution. On December 31, the deadline for creating a framework agreement describing the possible future has passed.
Why is there a delay?
Mohanan has been speaking with alternative investors in the background.
The owner of Liverpool FC and the Boston Red Sox baseball team, the Fenway Group, reportedly expressed unsolicited interest in the talks with the PIF.
Some may perceive Monahan as using the negotiating period as a last chance to entice backers to limit Saudi involvement rather than giving in before it.
Given that there was every opportunity for investors to pour money into the project during the 12-month LIV standoff.
In any case, the Saudis have arrived at their conclusion. The reigning champion Jon Rahm’s absence from this week’s PGA Tour season opener.
The Sentry, Tournament of Champions, following his incredible $350 million capture by LIV, could be seen as a threat. In other words, if Monahan decides to back out of the agreement, Rahm won’t be the final addition.
What takes place after that?
It is too early to tell how serious the new investors are about joining the PGA Tour.
Concurrent with the ongoing negotiations with the Saudi Public Investment Fund (PIF) are
talks with a consortium led by the Fenway Group and operating under the banner of SSG (Strategic Sports Group). A new deadline to finalize a deal is anticipated to be announced in the New Year;
some reports suggest that this deadline could extend to April.
In essence, Monahan is exchanging tradition and reputation for hard currency. The former is scarce and the latter abundant among the Saudis. Investment is necessary for the PGA Tour to thrive.
The company has a $10 billion guaranteed income until 2030, with half of that coming from sponsorship and ticket sales and the other half from broadcast deals.
The PGA Tour was the best in the field thanks to that number until LIV showed up with a $2 billion start-up budget. The other half was used to acquire players. The world No. 3 and winner of the Masters,
Rahm, has joined the ranks of other major winners, including Dustin Johnson, Bryson DeChambeau, Patrick Reed, Louis Oosthuizen, and, of course, the legendary Phil Mickelson.
With Tony Finau, Tyrrell Hatton, and Viktor Hovland all identified as targets, the looting could very well go on.
What are the chances that the agreement will not work out for both parties?
The PGA Tour is built on tradition, with the greatest players participating in prestigious competitions held in iconic locations. This is the main factor that draws viewers, sponsors, and broadcasters.
The talent drain to LIV is obviously a threat to that positive cycle. When the top players are absent, the show loses its appeal, viewership declines, and values decrease.
For the Saudis, golf is a quick route to inclusion and respectability.
The intention is to broaden perspectives, turn the focus away from human rights, and normalize the kingdom in the eyes of the outside world.
LIV Golf was never meant to be a standalone sport. It began as a result of the inability to facilitate a more traditional entry into the golf industry through sponsorship and event hosting, the standard tools.
Regardless of the extent of SSG’s involvement, the tour is unlikely to be protected against more LIV looting.
Similarly to this, the Saudis are still outside without the soft power benefit that comes with being associated with the biggest golf brand in the world if they don’t have a deal with the PGA Tour.
The LIV product is still not very well-liked. Golf fans just don’t give a damn about who wins, the teams, or the tournaments. The absence of any noteworthy broadcast agreement serves as proof of that.
How does this come to an end?
The most likely scenario is smoke signals prior to April’s first major, the Masters.
The housekeeping matters that need to be resolved center on reintegrating LIV defectors and assimilating the shortened LIV format and team element into the schedule.
This is already partially the case on the European Tour, where LIV golfers compete in events.
Monahan is adamant that the wealthy defectors should face consequences if they are permitted to return to the PGA Tour.
This is a two-pronged move meant to put pressure on the Saudis for a larger monetary settlement and preserve some face following the blow to their reputation that followed the U-turn.
Prior to Rahm, Mickelson, Smith, Johnson, and Mickelson competing against McIlroy, Spieth, and others outside of the majors, we are most likely looking at 2025 at the earliest.
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