Following Tuesday’s news of the merger between the PGA Tour, DP World Tour and LIV Golf, jolting reactions of astonishment and betrayal pervaded the sports and media landscape. The entities are set to operate as one commercial company with a name to be determined in the coming future, marking a seminal moment in the history of golf. The agreement also ended litigation between the PGA Tour and LIV Golf, and gave the Saudi Public Investment Fund (PIF) ostensible purview regarding the evolution of the game.
Most players found out on Twitter, and even LIV Golf CEO Greg Norman was informed of the news shortly before its public announcement via a phone call. All of the eccentricities and nuance embedded in this type of situation has led sports fans to wonder whether this is just the metaphorical ‘tip of the iceberg’ for the PIF to expand its sphere of influence in the industry.
“I think it’s going to lead to the other sports doing the same thing,” Dennis, a caller on WFAN’s Boomer & Gio said. “If you have a league or commissioner – MLB; NBA; whatever it is – I think that they may do the same thing. Start their own league; get their own players on the backend or have a big name; give them these big contracts and kind of stir the pot for other leagues to do the same thing.”
The original source of indignation between the PGA and LIV Golf can be traced back to the launch of LIV Golf and its attempt to lure away players from the PGA Tour. The tour was successful in its mission, attracting stars such as Dustin Johnson and Phil Mickelson, and ultimately resulted in an unexpected, somewhat brash announcement of the agreement.
It has been a topic of discussion across sports media, but one that is perhaps more hyperbolic than it needs to be – at least according to another show caller who works on Wall Street.
This caller, named Mike, said that he visited Saudi Arabia and met with the Public Investment Fund, along with the fact that many businesses already have some presence or involvement with Saudi Arabia.
“The media makes it out to be a big deal, and I sort of look at it and say, ‘Everybody’s there. Everybody is there,’” Mike articulated. “This might get a lot of notoriety, but it’s a different thing.”
Mike divulged how golf was vulnerable to this kind of a transaction because all of its players are independent contractors who sign agreements with different tours to compete. Conversely, athletes in Major League Baseball, the NBA and the NHL are all under contract, and they could only be lured away through free agency or buyouts.
“The total adjustable market of players that could actually [be] picked off at any one time is basically 100% of all players [in golf],” he stated. “It’s much, much easier to pick off a large swath of players when nobody is really under contract.”
“That’s why we thought Kyrie Irving would be the perfect guy to lead the NBA over there because he’s a free agent right now and no one’s going to give him a supermax [contract],” co-host Boomer Esiason opined.
Despite the difficulties associated with the leagues being able to sign players affiliated with teams in contracts, show co-host Gregg Giannotti believes the affluent Saudi Public Investment Fund will try another way to carry out its mission. The entity simply has too many investors and is flush with cash; therefore, it may consider trying to own teams outright.
“I just don’t think that’s going to stop them,” Giannotti said of the composition of players available. “I know exactly what you’re saying, and it’s a great point and it was a very, very good call, but I still think they’re going to try.”
“I don’t see the NHL playing in Riyadh any time soon to try [and] get rid of the players’ escrow plan,” Esiason replied. “As much as Gary Bettman would love to do that and the players would love to do that, I don’t think hockey is the No. 1 thing over there.”
Esiason believes the PIF is more captivated by the allure of traditional events, such as horse racing, boxing and Formula 1 racing among others. He would not be surprised to hear about interest in acquiring a stake in some of them, an outcome that could aggravate geopolitical affairs because of the country’s human rights record.
“The hypocritical nature of what’s going on here, and all the things that had been said over the last year, and then, all of a sudden, after Jimmy Dunne reaches out to the Saudi investment fund… now everything changes,” Esiason said. “Oddly enough, he gets put on the PGA Tour’s board for policy.”
