If you’re a golfer – wait, scratch that – if you’re a human, you’ve heard the news: After 2 incredibly contentious years, complete with lawsuits, insults and hostilities, the PGA and LIV Golf have essentially merged. I remember where I was when JFK was shot, and now I’ll remember where I was when I heard this shocking news.
The framework of the deal was published recently. One of the key factors of the agreement is that all pending lawsuits between the PGA and LIV will be terminated. Some are saying there was so much dirty laundry in both camps that settling was just a way to stop the legal discovery.
But settling isn’t necessarily shocking news – what’s shocking is that usually after adversaries settle, they don’t merge. The PGA & LIV hated each other, sued each other, publicly bashed each other, now they’re getting married? It’s like Frazier and Ali kissing and making up. It’s like UNC rooting for Duke. Not a sports fan? It’s Roadrunner and Wile E. Coyote becoming lovers.
A bunch of people said they’ll never watch the PGA again, but how can I do that? Watching golf is what I do! But I’ll be darned if I know what to think about all of this.
Full disclosure, I’m a Lebanese-American, albeit second generation, but still, I’m absolutely not going to “Arab-bash.” But even I know that Arab countries have high levels of antisemitism, misogyny and homophobia. And Saudi Arabia, which follows Sharia law, tops the list. Can it be a good thing that the PGA has merged with them?
And are we supposed to be okay with a deal that happened after the Saudis poached the PGA’s assets (their players), then sued the PGA (depleting the PGA’s reserves)? One justification I’ve heard for the deal was that the Saudis’ Public Investment Fund (PIF) was going to continue flooding their infinite wealth into golf anyway, so this was the PGA’s best possible outcome. But doesn’t that make this a hostile takeover?
Another justification is that the PIF is invested in lots of other businesses. Have I taken my last Uber? I don’t think so. And I’ll add that if we don’t have morality clauses for other investors, why should we for them? But what’s next? Vladimir Putin buys the NFL? Kim Jong Un takes over the Yankees?
Yet another justification we’re given is that the PGA will retain control over the merged entity. I watched an interview where Jimmy Dunne (a PGA board member and one of the merger’s promoters) yelled into the camera that it’s “insane” for anyone to think the Saudis will run the PGA. But the PIF will be the PGA’s predominant investor and Yasir Al-Rumanyyan, the PIF Saudi powerbroker of the deal, will be the new entity’s Chairman of the Board. So, the money is Saudi and the Chairman of the Board is Saudi. With all due respect, Mr. Dunne, it would be insane NOT to think the Saudis will run the PGA.
A few more questions, but I’ll let Tom Watson ask them. Mr. Watson, one of the all-time greatest golfers and beloved golf figures, wrote an open letter to PGA Commissioner Jay Monahan where he asked Monahan directly:
- Why was this deal done in such secrecy?
- Why wasn’t even one of the players who sits on the Tour’s Policy Board included?
- Are the Saudis the only viable rescue from the Tour’s financial problems?
I think they’re all great questions. Jay, what say you?
For me, there are three bottom lines:
Bottom Line #1: The PGA is as American as apple pie. That Saudi Arabia now has such a stronghold on the PGA is astounding.
Bottom Line #2: I can’t seem to root for LIV golfers. Without their defections, the PIF and LIV had no leverage over the PGA. I know, I know, it’s easy for me to take the moral high ground – no one’s offering me $200 million for my golf game. But weren’t the LIV golfers’ defections the catalyst that ended the PGA as we know it?
But then there’s Bottom Line #3, and this may be the most important: Rory McIlroy, one of golf’s biggest superstars, the PGA’s most ardent defender and LIV’s most ardent hater, said he’s resigned to the deal. And he even added that, in the long term, the deal will be good for golf. Damn, if Rory McIlroy, who was the sacrificial lamb in this deal, can accept it, how can I, Josephine Schmo, have a problem with it?
As you can probably tell, my head is spinning. I’m requesting, no, I’M BEGGING, for your thoughts. What do you think about this?
I so agree with you Patty!!! It’s totally nuts… something has to give… so upsetting!!!
Thanks Tina. And thanks for always reading my stuff!! 🙂
Great article with a lot of valid points. I truly believe the bottom line is the almighty dollar here. I support the high moral ground. Until fans of all sports stop buying the merchandise, paying exorbitant amounts for tickets, and continue to look the other way when high levels of antisemitism, misogyny, homophobia and the occasional murder of American journalists occur, nothing will change for the better.
Golf is an elitist sport that has an awful history as far as misogyny and racism, with white-only clubs existing until 1990 and men-only clubs existing until 2012. Not sure I understand the outrage. This seems par for the course.
Great post. It is hard to understand. It’s easiest for me as a business litigator and mediator to put it all in the context of the lawsuits. The risk of a bad outcome for both sides (and that absolutely existed here) creates a powerful incentive to find another solution, even if it is not a perfect or even desirable one. You hold your nose and do what you gotta do to move forward. In many business disputes that includes figuring out a way to continue working with the party who just a minute ago was your enemy.
I am not a huge golf fan but, being human, I did note and follow this story with great interest, primarily because of the reasons you covered so thoroughly in this piece – given the extreme homophobia, misogyny, and anti-Semitism that goes along with anything that’s put through a machine governed (even if not officially!) by Sharia Law, it really seems like this is a situation that’s going to be fraught with unpleasantness. Even if the acrimonious history could be set aside (and it can’t!!) it’s the most ridiculous post legal settlement move EVER and even not being familiar with the main individual (corporate) players who had the final say on either side, it seems pretty evident that some truly ridiculous sums of money must have changed hands behind closed doors to make this happen. Which is sad and shameful and disappointing. And I’m sure additional details will leak through the secrecy barrier, both in the coming months and years down the line, but it’s all academic – the damage is done. It is really unfortunate that it’s basically impossible to unbundle the passion, joy, virtuosity, and authenticity of sport from the money. At best one can ignore it until situations exactly like this one pop up to ruin stuff.
Silver lining – the whole mess is great fodder for your excellent commentary. I will eagerly watch this space.
Kat, thank you so much for your thoughtful comments. You’re so right when you said; “at best one can ignore it until….”. I think that is the best we can do. Sad, but for fans like us, what’s the other choice? Boycott my passion??? I just can’t.
I rarely watch professional sports anymore.
When I was young, sports was a source of fun, connection, and meaning. Win or lose, I bonded with my opponents. It was so cool. Win or lose, I loved the thrill of laying it out there.
I try to find sports events and venues that match my values. But it’s getting harder and harder.
I share your feelings about Saudi Arabia. But I use the situation to remind me how many people in other countries and cultures feel when the US exports its culture through sports. We take pride in such efforts. They may not.
By coincidence, this morning I came across our group photo at the 2015 HRC golf outing in Philadelphia. I cannot begin to describe how special that day was to me. A community took me in and invited me to join in the fun of a day on the fairway. I began the day worrying that I was a leprous intruder. I returned home feeling like a champ.
That is the power of sports!
I totally agree with you Tina!! I must have been 3 when I threw my first baseball and it’s been a love affair with sports since. But holy $&@#%^, do I sound old. The youth of today will know no differently. I guess times change.
I hate was has happened. It’s actually unbelievable but money “talks” and who knows what this money is really saying?! “Gotcha” maybe? I’m so angry that Jay Monahan agreed to this ….what should we call it…???
Wait – your real name is Josephine Schmo?
What is the upside to the LIV/PIF taking over this American pastime? Is it like the “Mafia” going into legit businesses? Is the goal to own a piece of the apple pie? Could Kim Jung Un afford the Yankees and raise Steinbrenner from his grave? What does Trump think of this? He’s probably arranging deals to host tournaments in Scotland and NJ. Craziness. We need a Super Hero
Yes – and when I’m being addressed formally, I’m Miss Schmo.
I have been a huge fan of the PGA. The players that left for LIV had become multimillionaires from the PGA and their sponsors. This shows there is no loyalty and it is all about money. The Players who left for LIV did it only for the money. The PGA coming together with LIV is all about the money. Ethics be damned!!! There are no Ethics, not with the board of the PGA and certainly not with the Saudi
Yes, if the Chairman of the PGA is of the Saudi PIF, and the money is from the Saudis, then it appears the Saudis will be in control and running the PGA. First they raid the PGA, then sue the PGA and now they are lovey lovey. Remember that at the beginning of the summer, the Saudi Government said they would slow down oil production to raise the price of gas at the pumps. And they were directly involved with the murder of the Journalist Jamal Khashoggi. I don’t want to support this group in any way.
Thanks so much for commenting Ed!!! I think there’s a lot of anger out there about this.
The Saudi’s will remake professional golf, the same way they are remaking soccer. Part of the plan to diversify the economy, appease the population, launder their reputation, and spread influence (and corruption). Rory McIlroy had it right the first time! Next, the NBA?
Thanks Tom. I’m taping (geesh “taping” I’m so old) today’s senate hearings. You’re an attorney, I didn’t see the word antitrust anywhere. What are the hearings hearing?
Great article, Patty. For all our American altruism, the reality is that money talks. I think that is the cruelest heartbreak of all. And sadly, if I was offered $100 million, I shudder to think of my rationalizations and response. I would hope I’d be like Rory, but even he has caved. How sad for him, and for the rest of us.
What an opening sentence Margaret. You nailed it. “For all our American altruism….” Thanks for commenting.
It seems clear that we (America) and frankly, most of the world, has lost any “moral high ground.” Capitalism has completely won and continues to win. Look at pretty much any news headline, and you’ll find you can trace the outrage you feel back to the legislative capture of the corporations, whether it be gun laws, the Supreme Court, the opioid epidemic, lack of affordable medical care, climate change, or something as banal as a golf league. This is just another case of an entity with near-infinite amounts of money doing what it pleases. Sadly, we the people will forget about this and get on with our lives, just as we have with everything else.
Thanks Ted. Your comment was both thoughtful and a little sad. 🙁
The PGA Tour , DP World Tour, LPGA Tour, and Korn Ferry Tour were some of the only sports/entertainment vehicles where participants were payed for performance. The better they performed, the more they earned. Yes, some eartned “appearance” fees from sponsors, but the vast majority were only payed if they excelled. This is part of what made watching Friday rounds compelling…elite golfers grinding to make the cut., and ensure a payday. Saturdays have a name “Moving Day”. Players shooting low rounds in an effort to move up the leader board, and in turn a larger paycheck. Then there is Sunday, the final round, where we would be glued to the TV (or live at the course), watching the veteran navigatge his way to a win or the rookie holding on to their first big pay out. The unpredictable, drama filled nature of the sport made putting up with all of the Rolex, Car, Insurance, and equipment commercials bearable. The LIV took most of that away, with HUGE inital payments, no cut tounaments, and guaranteeed payouts. There is little drama, and a lot less grinding by the players. Make or miss a putt, no big deal,they’re getting paid anyway. Sure ,the winners get a big cas bonus, but every player made a big salary that week, regardless of they the performed. Not discounting the political, social, and moral commentary about Saudi Arabia, the LIV changed professional tournament golf, and not for the better.
WOW, John, thank you so much for your insight. So smart – I never realized that so much of the excitement as a fan was knowing the players had so much riding on their performance.