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PGA Tour & LIV Golf = Partners Forever?

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By TERRY LYONS

BOSTON – From the perspective of a present day columnist and former PR practitioner there’s a problem when a press release – dropped out of thin air – has been written by the lawyers.

Yes, this week, the good folks at the PGA Tour and LIV Golf decided to drop a little news on the sports world. They did so with an early morning news release that was grabbed by CNBC News, questioned as to its validity by The Dan Patrick Show a few minutes after 9:00am on the morning of June 6, 2023. It was verified by this publication when the third source was the homepage of PGATour.com itself.

You’d have thought they were trying to bury the story in quick sand.

From this columnists’ viewpoint, the news release had these qualities, of lack thereof:

  1. It was a major story but dropped on the global media as if it were a minor story, ready to be put out with the trash.
  2. It created more questions than it provided answers.
  3. After it was issued, instead of one solid spokesperson (a la PGA Tour Commissioner Jay Monahan), it prompted conflicting commentary from a minimum of six people, including: PIF Governor Yasir Al-Rumayyan, players such as Phil Mickelson (LIV), Rory McIlroy (PGA Tour), and PGA TOUR Policy Board member Jimmy Dunne.
  4. Every player hitting golf balls at the Pro-Am and practice rounds at the RBC Canadian Open was thrust into a barrage of questions – most Tour members left not knowing exactly what was going down.
  5. LIV Golf Commissioner Greg Norman was apparently “caught by surprise” and unavailable.
  6. The news release ended with a paragraph that said nothing and everything about the announcement. It read: “All parties will work in the months to come to finalize terms of the agreement, with details to be announced in due course.”

Ya think?

Here are just a few storylines created – including business reporters digging into the Tour’s longtime structure and Congress diving into the study as well – as the story advanced and more and more people felt the need to comment:

  1. Saudi Arabia’s Public Investment Fund which oversees LIV Golf and dozens of investments in sports and acquiring talent to play in Saudi-based sports interests will potentially invest in the PGA Tour as an exclusive investor. The PGA Tour is currently registered as a charity with separate business arms. The Tour has four related 501(c)(3) organizations—PGA Tour Charitable & Education Fund, PGA Tour Charities Inc, PGA Tour Employees Emergency Relief Fund and Pro Caddies Assistance Foundation—whose assets cannot be transferred to any for-profit entity.
  2. According to Laura Neal, Senior Vice President of the PGA Tour, as told to “InsideSources” that the PGA Tour organization “is a membership-based nonprofit” that complies with IRS rules, including making large charitable donations. A securities industry executive called the Tour a walking contradiction as its core business is registered with the IRS as a ‘business league’ but operates under nonprofit status. As has been reported over the years, that status allows the PGA to avoid hundreds of millions in taxes over the last few decades as its stages tournaments in locales where volunteers help stage the tournament and a significant dollar amount is targeted towards local charities in the city of each tournament. That has resulted in the PGA Tour donating some $3.64 billion to charity. (Way back in 2013, Forbes examined the PGA Tour structure – (link)
  3. It was said – prominently in the “news” release that “separately, PGA TOUR Inc. will remain in place as a 501(c)(6) tax exempt organization and retains administrative oversight of events for those assets contributed by the PGA TOUR, including the sanctioning of events, the administration of the competition and rules, as well as all other “inside the ropes” responsibilities, with Jay Monahan as Commissioner and Ed Herlihy as PGA TOUR Policy Board Chairman. PIF’s Governor Yasir Al-Rumayyan will join the PGA TOUR Policy Board. The DP World Tour and LIV Golf will retain similar administrative oversight of events on their respective Tours.”
  4. It was said a few days after the “news” broke that “the loyal” PGA Tour players would “get equity” in the new structure. Seemingly, that would be a “make-good” for the loyal players who turned down the tens of millions and multi-million offers to jump ship and play a year of 54 (LIV) golf.
  5. The Wall Street Journal and other media outlets, it was said that the PGA Tour claimed “it could not afford to keep battling the billions of dollars PIF could place behind LIV Golf and its continuing efforts to lure more players to the renegade tour.
  6. Commissioner Monahan reportedly told employees of the Tour that they “were outmatched” by the Saudi investments.
  7. On Friday, PGA Tour honcho Jimmy Dunne felt it necessary to explain some of the intricacies of the new deal to ESPN.com, stating, “The new [company] would grow, and the [current PGA Tour] players would get a piece of equity that would enhance and increase in value as time went on,” Dunne said. “There would have to be some kind of formulaic decision on how to do that. It would be a process to determine what would be a fair mechanism that would be really beneficial to our players.”
  8. Other players started getting into the act, most notably Bryson DeChambeau said, “I do feel bad for the PGA Tour players because they were told one thing and something else happened. On our side, we were told one thing and it’s come to fruition.” DeChambeau went on to address the deepest of issues in the relationship of the sport of golf to the 9/11 Families United, stating to CNN’s Caitlin Collins in a live, two-way interview, “I think we’ll never be able to repay the families back for what exactly happened just over 20 years ago and what happened is definitely horrible,” said DeChambeau. “I think as time has gone on, 20 years has (sic) passed, we’re in a place now where it’s time to start trying to work together to make things better together as a whole. I don’t know exactly what they’re feeling. I can’t ever know what they feel, but I have a huge amount of respect for their position and what they believe. Nor do I ever want anything like that to ever occur again. I think as we move forward from that, we have to look toward the pathway to peace and forgiveness, especially if we’re trying to mend the world and make it a better place. I think this is what they’re trying to accomplish, LIV is trying to accomplish, PIF is trying to accomplish. We’re all trying to accomplish a better world for everybody with entertainment for everybody around the world.
  9. DeChambeau was asked by Collins about human rights violations and the CIA verified killing of journalist Jamal Khashoggi in Istanbul, an act that Saudi Crown Prince Mohammed bin Salman ordered for assassination of the provocative and critical journalist. “It’s unfortunate what has happened and something I can’t necessarily speak on. I’m a golfer,” DeChambeau added. “But what I can say is that what they’re trying to do, what they’re trying to work on is to be better allies because we are allies with them. I’m not going to get into politics, I’m not specialized in that. What I can say is they’re trying to do good for the world and showcase themselves in a light that hasn’t been seen in a while. Nobody’s perfect, but we’re all trying to improve in life,” said the man who pocketed $150 million in a signing bonus to play LIV Golf.
  10. Said Vox’ Jonathan Guyer on the overall impact and resulting aspect of the (PGA Tour claims not to call it a) merger: “The golf course is perhaps not the arena that immediately comes to mind when you’re thinking about geopolitics. But with one proposed golf business deal, Saudi Crown Prince Mohammed bin Salman, known as MBS, just hit the geopolitical equivalent of a hole-in-one.”

And, so, the story goes.

See you at next week’s U.S. Open in Los Angeles where there will be more than 100 new spokespeople for the continuing saga of “How the PGA Tour & LIV Worlds Turn.” Surely, the USGA is thrilled with the consequences of staging a major 10 days after the world of professional golf was turned inside out, upside down and sideways without any clear path made public.

After all, nobody’s perfect, right?