Former European Ryder Cup captain Henrik Stenson during the LIV Golf Invitational event at Trump National Golf Club in Bedminster, New Jersey. Picture by Cliff Hawkins
Former European Ryder Cup captain Henrik Stenson during the LIV Golf Invitational event at Trump National Golf Club in Bedminster, New Jersey. Picture by Cliff Hawkins
The world of golf as we know it has been turned upside down in recent months with the emergence of a new option, the Saudi Arabian financed, LIV Golf Tour. A completely new 54-hole, shotgun start format with a team element, that is leaning towards entertainment rather than sport.
The battle between the establishment and the revolution is well and truly underway and the bottomless pit of Saudi finances looks to have the power to out-muscle anything in its way. It is hard to see at this point how golf is going to be the winner. One thing for sure is that a set of already rich golfers are going to get a lot richer.
After a false start earlier in the year, LIV Golf teed off in June with its maiden event in the UK. Some of the game’s biggest names on both sides of the globe were the early adopters, from America’s six-time Major winner, Phil Mickelson to European Ryder Cup legends Sergio Garcia, Lee Westwood and Ian Poulter. Players at the tail end of their careers, including Northern Ireland’s Graeme McDowell, couldn’t resist the opportunity for a retirement pay cheque they previously could only dream of.
A strong initial rebuke from the PGA and DP World Tours grew teeth when players who made the move to LIV were banned from Tour events. The war had begun, with the next battle playing out in the media. It has been enthralling and uncomfortable viewing in equal measure. The players have been challenged in press conferences on Saudi Arabian human rights issues and sports washing claims and the rehearsed responses around growing the game fooled no one.
Rory McIlroy led the line of defence for the PGA Tour, supported by elite players like John Rahm, Justin Thomas, Shane Lowry and Pádraig Harrington, and it seemed the establishment was safe for the time being.
But there has now been a series of significant big blows struck by LIV Golf which have seen the narrative shift from ageing players to current stars. Take the signing of fan favourite Bryson DeChambeau, the 28-year-old US Open winner, who was responsible for bringing a new set of fans into golf through his big-hitting. This was a major coup for the rebels. Alongside compatriots Dustin Johnson, Brooks Koepka and Patrick Reed, LIV Golf has snatched over a third of last year’s US Ryder Cup winning team.
With the sport’s back against the wall, in marched The Open. The biggest tournament in world golf staged in the home of golf at St Andrews, welcoming back Tiger Woods was just the defence the establishment needed to restore order. The tradition, the history, the crowds, the test of golf, the purity. The pendulum seemed to swing back.
Then Cameron Smith, the new Open champion, refused to rule out a move over to the LIV, spearheaded by his fellow Australian, Greg Norman, and the circus continued. The latest major scalps to ‘defect’ — Henrik Stenson and Bubba Watson — have been another blow to the traditional tours. Stenson was immediately removed as the captain of the European Ryder Cup team for 2023. The war rages on.
But to what end? Amongst all the chaos, the battle plan and ultimate vision of LIV Golf remains unclear. With billions of dollars being thrown at the players, is it realistic to think they could turn a profit, and would they bother going after a sponsorship revenue stream?
Last week’s announcement went some way to answering these questions, providing much more of an insight into their plans. LIV Golf tweeted, “LIV Golf is giving the principal players on each team 25 per cent ownership in the team and providing full support to acquire sponsorships and build the team into the equivalent of a major sports franchise.”
This revelation will have shaken the establishment to the core. Like it or not, making every team a franchise and making every star player an owner is a smart play. If they succeed, there will be profitability in the league itself along with a value against each of the four-person teams.
Bryson DeChambeau hits a tee shot during the LIV Invitational Pro-Am at Trump National Golf Club Bedminster. Photo: John Jones/USA TODAY Sports
No wonder the American heroes like DeChambeau, Johnson and Koepka opted in. American Franchise sport is all they know. Tradition is nice but a bucket load of cash and part-ownership of a franchise is a different ball game.
While the player war will rage on, an interesting battle will now commence around sponsors, one that could really damage the PGA and DP World Tours.
With over 50 official partners listed on the PGA Tour website, sponsorship is a key revenue driver for the Tour, contributing significantly to their reported $1.5 billion revenue. This income is crucial in enabling the Tour to increase prize funds, something that is now more important than ever in the fight to keep their players.
The PGA Tour sponsors are made up of an array of heavyweight global companies that feel aligned to the current game and PGA Tour brand. Rolex, for example, is unlikely to switch to LIV Golf, but plenty of brands will be lured into the new-look approach that LIV has taken.
The likelihood is that naming rights will become available for the teams themselves. The high cost would be an easy sell for a company looking to break a new market and gain traction globally.
LIV Golf last week announced a major expansion plan for 2023 with the 12 teams taking part in a 14-tournament schedule across North and Latin Americas, Asia, Australia, the Middle East, and Europe.
LIV Golf have stated that “The 2023 league schedule will not compete with the Majors, international team events or heritage events so the best players in the game will always be able to make their own choices about where to play.”
The four golf Majors operate outside the Tours and to date they are keeping their cards close to their chest, allowing all qualified players to play. In some ways they hold the key to the future success or failure of the rival Tour.
One of the last weapons in the fight against LIV Golf is world ranking points. As it stands, LIV Golf events will not have world ranking points attached to them so the LIV players will start to plummet down the rankings and only those with Major winner exemptions will be able to compete in the flagship events. This looks like the PGA Tour’s last line of defence.
Momentum is a hard force to stop and with the team franchise plans revealed, sponsor and increased broadcast money will follow. As the weeks and months go by, the wounded PGA Tour is in danger of loosening its firm grip on golf. Finding a way to co-exist might be their only option.
Kevin Moore is managing director of Legacy Communications
