The business of professional golf is experiencing a period of disruption and uncertainty. Golf Digest Editor, Jerry Tarde, and many other knowledgeable observers are describing professional golf as “broken”. The arrival of the new LIV professional tour is rightly blamed as the major disruptor. But, there are other dynamics, long standing or structural, likely accentuated by the LIV initiative.The current de facto and future de jure ruler of Saudi Arabia, Mohammed bin Salman (MBS,) is on a mission to improve the reputation of his country following the egregious dismemberment of dissident journalist, Jamal Khashoggi, in the Saudi consulate in Turkey in 2018.The Saudis have become significant commercial investors in the western world, recently focusing on sports. Saudi Arabia and other Gulf countries have been buying interests in European football (soccer) teams and signing star players for their home teams. Leading the Saudi financing of LIV is Yasir Al-Rumayyan, the chair of the world’s largest corporation, Aramco. This immense oil producer makes him a senior colleague of MBS.The public face of LIV is Greg Norman, the former Australian superstar golfer who has wider ambitions. He is not necessarily loved by former and current Professional Golfers' Association (PGA) players. One is reminded, for example, that he landed his helicopter at the backend of the range in a British tournament, interrupting player warm up routines at the other end. Maybe a need for some humility.Jay Monaghan is the current commissioner of the PGA Tour, holding office since 2017. The PGA Tour was shocked as one golfer after another left the tour in favor of LIV, including major winners such as Phil Mickelson, Brooks Koepka, Cameron Smith and more recently Jon Rahm. Facing a rumored anxiety attack, the commissioner took a leave of absence. No love lost for Greg Norman, but Monaghan also received criticism from PGA players for lack of communication and open governance. The crisis progresses.LIV, a Roman numeral signifying 54, the number of holes played in each tournament (compared to 72 holes on the PGA Tour) presents the market with a very different concept. Players form teams, which they partially own, and compete at each tournament — really a franchise. This challenges the current model where the PGA Tour owns only six of the events: they are mostly the property of charities in the respective cities. Players own nothing.Governance of global golf is complex and perhaps part of the problem. The PGA is the entity of club professionals and other than hosting the PGA, one of the four majors, The Masters, is distinct from the PGA Tour. Several long time tournament host sponsors are moving on. The model of serving charities in each venue is very generous and helps define professional golf. But, will it continue?After a tentative agreement broke down, LIV signed Rahm. The PGA negotiated a financial interest with the Strategic Sports Group from Boston leading to the formation of PGA Tour Enterprises. Animosity, lack of trust, and both counterparties with private equity investors.So, a bigger question — is a competing league an unusual dynamic in the world of professional sports?The National Hockey League was challenged by The World Hockey Association which quickly tripled the salaries of most players. While the WHA most certainly disrupted the NHL, ultimately the poorly managed league (especially as compared to today’s savvy Bettman/Daley team) absorbed four teams and embarked upon many changes on and on the ice.It provided more opportunity for players, jobs in hockey and exposure to more cities — would there be NHL teams in Calgary, Edmonton and Winnipeg had there not been a WHA?Similar outlaw leagues in basketball and football ultimately resulted in broader coverage for television, higher salaries and more valuable franchises for owners who survived. Who can forget the performance of Joe Namath at Super Bowl III in Miami where the outlaw American Football League (AFL) delivered one of the great upsets in professional sports history.Meanwhile, the Gerry Tarde, editor in chief of Golf Digest magazine, in an article reminds us that all is well with the sport of golf for recreational golfers, the 99%. Not so long ago a sport in decline with ageing demographics and courses closing, it may be that the “TSN turning point” was COVID-19, which shut down most activities in favour of safe outdoor golf.According to statistics from Golf Digest, this rejuvenation welcomes more young people, women and minorities. Many new courses have opened or are under construction. Golf is back, perhaps leading to another golden age so fondly remembered.It appears that the merger of the PGA and LIV tours is the Norman and Saudi objective and may be the only real solution. Does the PGA Tour, now with its own deep pockets, buy the Ryder Cup and the PGA Championship, Tarde wonders?In the meantime, despite the corporate rancour and disruption at the professional level, golf is alive and well and remains a gentleman's game, meaning high standards of courtesy, respect for golf courses, friendly competition, self-reporting of ruling infractions, standards of dress and other laudable aspects of the culture of golf.Although golf television audiences are usually relatively low, April brings us The Masters, the azalea flowers and the majesty of one of the most beautiful places anywhere. While the journey of professional golf continues to an uncertain outcome, the best players in the world are in Augusta, competing on a special course, where legends are remembered and tradition honoured.Uncertainty, disruption, and conflict — much is broken in our world today. But golf, at least this weekend, is a timely respite of mental toughness, physical skills, drama, and thrilling competition.Enjoy The Masters.
The business of professional golf is experiencing a period of disruption and uncertainty. Golf Digest Editor, Jerry Tarde, and many other knowledgeable observers are describing professional golf as “broken”. The arrival of the new LIV professional tour is rightly blamed as the major disruptor. But, there are other dynamics, long standing or structural, likely accentuated by the LIV initiative.The current de facto and future de jure ruler of Saudi Arabia, Mohammed bin Salman (MBS,) is on a mission to improve the reputation of his country following the egregious dismemberment of dissident journalist, Jamal Khashoggi, in the Saudi consulate in Turkey in 2018.The Saudis have become significant commercial investors in the western world, recently focusing on sports. Saudi Arabia and other Gulf countries have been buying interests in European football (soccer) teams and signing star players for their home teams. Leading the Saudi financing of LIV is Yasir Al-Rumayyan, the chair of the world’s largest corporation, Aramco. This immense oil producer makes him a senior colleague of MBS.The public face of LIV is Greg Norman, the former Australian superstar golfer who has wider ambitions. He is not necessarily loved by former and current Professional Golfers' Association (PGA) players. One is reminded, for example, that he landed his helicopter at the backend of the range in a British tournament, interrupting player warm up routines at the other end. Maybe a need for some humility.Jay Monaghan is the current commissioner of the PGA Tour, holding office since 2017. The PGA Tour was shocked as one golfer after another left the tour in favor of LIV, including major winners such as Phil Mickelson, Brooks Koepka, Cameron Smith and more recently Jon Rahm. Facing a rumored anxiety attack, the commissioner took a leave of absence. No love lost for Greg Norman, but Monaghan also received criticism from PGA players for lack of communication and open governance. The crisis progresses.LIV, a Roman numeral signifying 54, the number of holes played in each tournament (compared to 72 holes on the PGA Tour) presents the market with a very different concept. Players form teams, which they partially own, and compete at each tournament — really a franchise. This challenges the current model where the PGA Tour owns only six of the events: they are mostly the property of charities in the respective cities. Players own nothing.Governance of global golf is complex and perhaps part of the problem. The PGA is the entity of club professionals and other than hosting the PGA, one of the four majors, The Masters, is distinct from the PGA Tour. Several long time tournament host sponsors are moving on. The model of serving charities in each venue is very generous and helps define professional golf. But, will it continue?After a tentative agreement broke down, LIV signed Rahm. The PGA negotiated a financial interest with the Strategic Sports Group from Boston leading to the formation of PGA Tour Enterprises. Animosity, lack of trust, and both counterparties with private equity investors.So, a bigger question — is a competing league an unusual dynamic in the world of professional sports?The National Hockey League was challenged by The World Hockey Association which quickly tripled the salaries of most players. While the WHA most certainly disrupted the NHL, ultimately the poorly managed league (especially as compared to today’s savvy Bettman/Daley team) absorbed four teams and embarked upon many changes on and on the ice.It provided more opportunity for players, jobs in hockey and exposure to more cities — would there be NHL teams in Calgary, Edmonton and Winnipeg had there not been a WHA?Similar outlaw leagues in basketball and football ultimately resulted in broader coverage for television, higher salaries and more valuable franchises for owners who survived. Who can forget the performance of Joe Namath at Super Bowl III in Miami where the outlaw American Football League (AFL) delivered one of the great upsets in professional sports history.Meanwhile, the Gerry Tarde, editor in chief of Golf Digest magazine, in an article reminds us that all is well with the sport of golf for recreational golfers, the 99%. Not so long ago a sport in decline with ageing demographics and courses closing, it may be that the “TSN turning point” was COVID-19, which shut down most activities in favour of safe outdoor golf.According to statistics from Golf Digest, this rejuvenation welcomes more young people, women and minorities. Many new courses have opened or are under construction. Golf is back, perhaps leading to another golden age so fondly remembered.It appears that the merger of the PGA and LIV tours is the Norman and Saudi objective and may be the only real solution. Does the PGA Tour, now with its own deep pockets, buy the Ryder Cup and the PGA Championship, Tarde wonders?In the meantime, despite the corporate rancour and disruption at the professional level, golf is alive and well and remains a gentleman's game, meaning high standards of courtesy, respect for golf courses, friendly competition, self-reporting of ruling infractions, standards of dress and other laudable aspects of the culture of golf.Although golf television audiences are usually relatively low, April brings us The Masters, the azalea flowers and the majesty of one of the most beautiful places anywhere. While the journey of professional golf continues to an uncertain outcome, the best players in the world are in Augusta, competing on a special course, where legends are remembered and tradition honoured.Uncertainty, disruption, and conflict — much is broken in our world today. But golf, at least this weekend, is a timely respite of mental toughness, physical skills, drama, and thrilling competition.Enjoy The Masters.
