PGA Tour & PIF/LIV Golf Merger

[Dweed]

McNealy had an interesting perspective. Yeah, there is a lot of "we don't know all the facts" going on. There are some very emotional aspects such as "where" the money is coming from. I do suppose a lot of this decision was due to the upcoming trials and potential of "information coming out that some don't want out".  Hell this reminds me of "we have to stop Communist aggression in SE Asia" and where we ended up. Hey "what about all those weapons of mass destruction" and who was really responsible for 9/11, where the money came from etc. The draw down and get out of Afghanistan quick moves recently. 

We only see such a little bit of the info "they" want us to see.  1984, Solent Green, it is just sad that that kind of political money grabbing greed and dishonesty has entered the field of golf. Sad for sure.

[Mmoorhead]

I like it, let's unite and grow the game instead of bickering and pointing fingers. Smart move business wise as well. 

[MacTourney]

Monahan's skill in the world of argle-bargle is impressive. 

[daviddvm]

 

Here is some GOOD news!!!!!!!!!!!!!

 

[Syks7]

IMHO.  I think this is how this goes if they follow some basic business sense.  If the goal is to get Saudis inside a tent with corporate sponsors it should go down like this.

The new entity that's the umbrella over the golf slowly phases out the tour without a proven history, large overhead, a leader prone to a lot of hyperbole, and ever changing logistics.   They fold that tour into the two with major brand recognition and history and serious corporate sponsors.  They keep what works from the fledgling tour,  Australia & SEA anyone?, no cut high payout limited field events.  Then workshop some of the stuff that's iffy, teams, shotguns starts, etc.  Finally they'll drop the stuff that doesn't -- weak fields at the bottom, 54 holes, and some other stuff.  

I think LIV's days are numbered.  It just doesn't make sense for the Saudi PIF to continue to pump money into a new product when they could see a much faster return pumping that money into a proven product with brand recognition.  

EDIT:  HA!  Post above pointing towards where I was thinking.

Edited June 7 by Syks7

[Clay5477]

3 hours ago, Shapotomous said:

@Clay5477  i think you are mostly correct in your post but i believe #5 is a contradiction.  When this is done PIF (not LIV) holds the purse strings and runs global golf not the PGA tour and whoever is commisioner at that point. 

A couple other thoughts that crossed my mind over the last day...

I think Jay ends up running the umbrella company at a huge increase in salary which explains him selling out his players so easily.  

Seven weeks in the making puts it before the PGA and takes the LIV victory out of the sphere of influence.  

Besides the $$ sellout of Jay i think the tour was afraid of the lawsuit discovery into their financials.  They probably would have won the lawsuit and lost a bigger battle from the disclosures.

You are 100% correct on the relationship between PIF and LIV. I was sorta using them interchangeably, but that leads to confusion. I'll go back and edit my original post.

I don't think you're correct on who "runs" global golf going into the future. My assumption, and that's all I have at this point, is that the PGA Tour has at least a 51% stake in the "Global Golf Tour." I can't see them going into this partnership on any other footing. PIF, as the "Premier Investor", has first right of refusal on any future infusions of capital.

Yeah, Jay is gonna be the Elon Musk of golf. 

On the other hand, I don't think that PGA Tour players have been sold out. I think, after the shock has worn off, they'll be better off than before. Bigger purses, more no-cut tournaments, maybe even...shorts!!

[Rickp]

3 minutes ago, Clay5477 said:

You are 100% correct on the relationship between PIF and LIV. I was sorta using them interchangeably, but that leads to confusion. I'll go back and edit my original post.

I don't think you're correct on who "runs" global golf going into the future. My assumption, and that's all I have at this point, is that the PGA Tour has at least a 51% stake in the "Global Golf Tour." I can't see them going into this partnership on any other footing. PIF, as the "Premier Investor", has first right of refusal on any future infusions of capital.

Yeah, Jay is gonna be the Elon Musk of golf. 

On the other hand, I don't think that PGA Tour players have been sold out. I think, after the shock has worn off, they'll be better off than before. Bigger purses, more no-cut tournaments, maybe even...shorts!!

Shorts

[fixyurdivot]

7 hours ago, Kansas King said:

I think I'm done watching any golf that is going to be under this new PIF umbrella corporation. Maybe I'll watch the PGA Championship and US Open but not for a while. I hate that money ruined the one sport I truly love. The saddest part is I know the whole industry will capitulate to this new entity.

I share your sentiment. Money has ruined much about professional sports and it's feverishly working at doing the same at the collegiate level. The "dirty money", boycott cry we heard from so many about LIV and the players that went to LIV should be the same reason PGA Tour fans boycott this new, yet to be named, "dirty money" tour... but they won't.  Somehow people find ways to develop, rationalize, apply, and accept double standards.  

I'll still watch LPGA and Champions Tour events but my interest in PGA Tour events had already waned and this dripping with hypocrisy move by Monaham & Co. has done nothing to help.  

[Bang60]

Money  talks bullshitt  walks... 

[Middler]

The Saudis won. They couldn't have bought their way directly into the PGA before LIV.

Start a rival "tour" with much higher purses, buy players from the PGA. When the PGA puts on elevated events with more marquee players and much higher purses, many sponsors say 'too rich for us' and the PGA continues to deplete their reserves (after taking a hit during Covid). Throw in some nasty lawsuits to further stress PGA reserves/income.

LIV doesn't gain much traction. The Saudis begin to wonder if they'll see the payback they are looking for. And the PGA throws some lawsuits at them too.

Even though LIV wasn't catching on (yet), PIF can see Jay's balance sheet is bleeding and some sponsors are quitting, who knows what the remaining sponsors might have been telling Jay in the background. So PIF throws some money at the PGA to "merge", balance sheet gets well, lawsuits disappear, and some palms get greased as always.

Voila. The Saudis now have a big financial and leadership stake in professional golf, just like Premier League soccer and Formula 1. They have an in to sponsors and broadcast contracts. Looks like they played their hand better than anyone else.

And it may take a decade, but they'll have a stake in American professional football, basketball or baseball some day...

[Shinnman]

Greed for lack of a better word is good.  Greed is right.  Greed works.  Greed clairifies, cuts through and captures the essence of the evolutionary spirit.  Greed in all its forms, greed for life, for money, for love, knowledge has marked the upward surge of mankind.  And greed, you mark my words, will not only save LIV, but also that other manufacturing corporation called Saudi Arabia.

[Dweed]

So I wonder!!  Saudi's cut back on production of oil and gas prices here have gone up a bit again lately.  I wonder if that means course rates will soon be increasing?

[Bosox04]

I’ll probably watch the Majors, and maybe Hilton Head, but that’s about it. I was supposed to go to Greensboro this year, but will now stay home.  Might watch a bit more LPGA. I know the Tour really doesn’t care if I watch or not, but I’ll feel better not supporting the Saudis.

[Bang60]

Problem being the extremely wealthy are not nice people and only SEE me me me me me, I just hope a few more PENNIES fall off the table 

[MadMex]

Heard there is already a movement by congress to repeal the PGA’s “non-profit” status.

https://www.sportico.com/leagues/golf/2023/pga-tour-tax-exempt-status-congress-bill-1234725406/

[WiTerp50]

On 6/6/2023 at 9:37 AM, PeterHenric said:

So my assumption is that this will be a different league that is obviously separate from the PGA TOUR and their nonprofit status.

I would bet that the PGA and Liv did not want their dirty laundry aired in these lawsuits so it benefited both of them to settle this and move forward

Subsidiaries of for profit or non-profit corporations can be non-profit or for profit entities. Money can be funneled to charities, but the veil is off of the actual nature of the entity is a for profit corporation with a foreign owner with ties to Saudi Arabia 

[Middler]

While this may settle some legal issues, there may be plenty more "disruptions and distractions" to come. 

• There's already a significant group of people asking anti-trust questions. Wouldn't that be ironic.
• Will players take collective action? Alone they can't do anything, but collectively they could exert pressure. I suspect money will prevail and they won't do anything, making them complicit.
• Will all the existing sponsors be good with this merger? I wouldn't think so, but we will see.
• Will all the LIV players have the good sense to refrain from gloating. Of course Phil has started immediately...

I know my respect for the PGA may never be the same. I will still watch majors on TV, or attend in person - but I can't imagine buying a ticket to see a PGA event in person anytime soon.

What's the saying, only money, greed and time are undefeated...

[RickyBobby_PR]

Interesting people keep talking about a merger, from what I’ve seen from nlu and others on social media none of the tours are merging with the other. They are forming a partnership. 
 

Still a lot to see what that all means and how/what each tour structures their tournament play going forward.

 

[Preeway]

7 minutes ago, RickyBobby_PR said:

Interesting people keep talking about a merger, from what I’ve seen from nlu and others on social media none of the tours are merging with the other. They are forming a partnership. 
 

Still a lot to see what that all means and how/what each tour structures their tournament play going forward.

 

That’s a point that people keep missing. There is a merge with PIF but not with LIV. And the merger is only to create a new business entity that sounds like it will fund both the PGAT and DPWT. I’m real interested to see whether PIF continues to fund LIV after 2023. 

[LICC]

19 minutes ago, RickyBobby_PR said:

Interesting people keep talking about a merger, from what I’ve seen from nlu and others on social media none of the tours are merging with the other. They are forming a partnership. 
 

Still a lot to see what that all means and how/what each tour structures their tournament play going forward.

 

They are merging commercial operations. So it looks like television negotiations, sponsor negotiations, media rights, etc. will be handled at the parent company.