Rumors began surfacing in the spring of 2021 about a new professional golf tour to be based in the Middle East that would invite the best players to compete in their events. Greg Norman was named the CEO of the newly formed LIV Invitational Golf Series with an initial investment of $200 million committed to form the new league.
What has happened since that time is one of the most intriguing stories to ever be experienced in the world of professional golf. Innuendo, threats of banishment, plus over $2 billion eventually ponied up by the LIV to get their new venture up and running simply boggles the mind of the average golf fan.
We are accustomed to see professional golfers being paid millions of dollars for winning a golf tournament, plus we know they make much more from sponsorship agreements with golf equipment, apparel and Fortune 500 corporations. We are, however, shocked at players receiving multi-million dollar guaranteed contracts, before they hit the first tee shot, or earn the first dime in an actual tournament.
The PGA TOUR has prided itself over the years as a competitive tour where players must earn their spot via a progression through various minor tours to compete at the highest level. Players who do not make the 36-hole cut go home that week without a paycheck. The LIV Invitational Series is paying out exorbitant sums to top name players just to show up.
Phil Mickelson is reported to have inked a deal worth $200 million, while Dustin Johnson and Brooks Koepka both received over $100 million guarantees. Lesser names such as Lee Westwood, Sergio Garcia and Louis Oosthuizen have received eight-figure deals in the $30-$50 million range.
Who among us would not like to earn more money for working less hours? Professional golfers have not always been as well compensated as today’s jet-setting, million-dollar lifestyle players of today.
Television found golf a viable programming option in the late 1950’s. Arnold Palmer’s slashing style and good looks were made for the small screen and golf fans immediately took notice. Arnold and corporate sponsors were a match made in heaven and the standard was set for professional golfers today.
In all of the rhetoric of the fighting between the PGA TOUR and the LIV, several of the players seem to have forgotten the history that allowed them to become household names and earn millions for their families on the PGA TOUR.
It has also been reported that the LIV is actively recruiting top collegiate players to forsake the hard road to a professional career via the PGA TOUR. 2021 U.S. Amateur Champion, James Piot just finished his college days at Michigan State and has opted to accept a lucrative offer from LIV. Pierceson Coody, grandson of Masters Champion, Charles Coody, was a three-time All American at the University of Texas and earned exemption to the Korn Ferry Tour by finishing first in the 2022 College Series. He reported that LIV offered a multi-million dollar guarantee to join the LIV Invitational Series, but he, unlike Piot, declined as it has always been his dream to compete with the best players in the world on the PGA TOUR.
Another facet of professional golf in the United States is the charitable aspect of the hundreds of non-profit organizations that benefit from PGA TOUR events held in the cities across the country. It has always been somewhat easier explaining a tournament’s huge purse and million-dollar payout to the winners, when several million is generated for hometown charities. This will not be the case with the LIV.
In fact, the lack of a few big names to enter PGA TOUR events might even dilute ticket sales, sponsorships and television revenues could decrease in the future.
The PGA TOUR has been a victim of its own success. It has ruled the world of professional golf for several years and now with a rival they must examine every segment of their product and form a new long-term strategy going forward.
Under the heading, ‘There is no such thing as bad PR,’ the LIV seems to be drawn to controversial players. Sergio Garcia, Patrick Reed, Bryson DeChambeau, Ian Poulter and even Brooks Koepka have all had their issues with media and fans. Greg Norman may have his hands full keeping them all in line on the LIV Tour.
The Crown Prince of Saudi Arabia is the largest investor in the LIV Investment Group. It is his money that is being thrown at the golfers. I would imagine he is willing to do this for the short term and expects to improve the government’s less than stellar image on civil rights issues, but at some future time he will want to get some of it back.
With the addition of Brooks Koepka, along with Phil Mickelson and Dustin Johnson, Greg Norman may have just what he needs to attract a large Asian, or Russian company to invest money for LIV sponsorship rights. Plus, there has to be a European, or Asian television network willing to pay big bucks to be the sole media provider for the LIV Invitational Series tournaments.
Back 9 Report discussed the impact of Brooks Koepka joining the LIV Invitational Series and what we can expect to see going forward. https://www.youtube.com/watch?v=-0iTeJO3aUk
Negotiations are now ongoing to grant Official World Golf Ranking (OWGR) points to LIV tournaments. The players who have moved to the LIV want to maintain their Top 50 World Ranking to be eligible for major championships. PGA TOUR Commissioner, Jay Monahan sits on the board that will decide whether, or not to include LIV tournaments in the OWGR. I seriously doubt that he will be for their inclusion. This will be the final big hurdle the LIV will have to face to become a legitimate professional golf tour.
Next the former PGA TOUR members that have joined the LIV and been banished by Monahan will need to pursue legal action to regain their playing privileges for future PGA TOUR events. Phil Mickelson and Dustin Johnson both have won over 20 PGA TOUR events and have earned lifetime exemptions into those tournaments.
Even with Commissioner Monahan vowing permanent exclusion for LIV players, I think it will be difficult for the PGA TOUR to permanently exclude former tour members.
This drama has been playing out for over two years and there is no end in sight. The PGA TOUR will continue conducting tournaments and the LIV has plans to grow in the coming years.
Two large opposing forces are racing headlong at each other. At some point something has to give.
