What's Going on with PGA Tour, SSG, LIV and PIF

Social media started off blazing hot a few months ago with news of the meeting between Yasir Al-Rumayyan, governor of PIF (Public Investment Fund) and Jay Monahan, CEO of the PGA Tour and six player representatives. Speculation as to what was discussed has ranged from Yasir has sold out LIV to Monahan and the PGA Tour are done. The reality is no one really knows. It’s all speculation. But…let’s face it, speculation is fun.

Recently, there have been additional meetings with rumors swirling regarding PGA Tour players demanding LIV players give their money back if they want to play in PGA Tour events. The only official news to come out of the meetings involved allowing LIV players to play in the PGA Championship and Ryder Cup.

In order to sift through the information coming from the rumor mill, it’s important to look at PIF, and it’s role with LIV.

PIF is the sovereign wealth fund of Saudi Arabia. It is the largest such fund in the world with an estimated $925 billion in assets. It has been established as the key component of Saudi Vision 2030 to invest in tourism, transport assets, sports and other avenues to diversify the Saudi economy away from oil and become a tourist hub.

Most people view PIF as a way to clean the Saudi image. Besides golf, PIF is heavily involved with Formula-1 racing, soccer, cricket, tennis, boxing, horse racing, professional wrestling, MMA and e-sports. By working through globally recognized sports, PIF is advancing the Saudi goal set forth in Saudi Vision 2030.

Most give this a name; sportswashing.

Sportswashing involves using sports to draw attention away from unethical conduct, human rights violations, etc. The effect is to improve the image of the offending party by using sport to “wash” away the poor image. It is exactly what the Saudi’s are doing.

With golf, PIF helped found LIV Golf, Greg Norman’s brainchild. PIF provided the necessary financial backing Norman needed to continue his personal vendetta against the PGA Tour. The vendetta started 30 years ago when Norman first posited the idea of a world tour consisting of the top players in the world. The PGA Tour led by Arnold Palmer and Jack Nicklaus quashed the idea. In a player vote at the meeting, Norman was unanimously voted down. But Norman has never stopped in his quest to create such a tour. PIF made it a reality.

But is LIV really what PIF wants?

That’s the question. I believe LIV is a tool PIF is using to leverage the PGA Tour. While profit may not seem to be all that important for a fund with $925 billion, in the long term, it is. Currently, LIV is not a profitable tour. One of the potential revenue streams, equity in the teams, has not materialized yet. Depending on who you listen to, there are numerous stories involving the teams. Comments ranging from there have been so many buyers lined up they have had to turn some away to teams aren’t available yet. I personally think there hasn’t been much, if any, interest.

Why would there be interest? LIV failed to create natural fan bases for the majority of the teams. Big name sponsors haven’t lined up to support the tour. And, this is a big issue even in the age of streaming, the only television deal LIV could get was with the CW which is set expire. While LIV supporters proclaim the old model of television no longer works, it sounds more like spin to cover the inability to obtain a viable television contract.

There is more to discuss between PIF, LIV and the PGA Tour.

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As always, be grateful every time you get to play. Be thankful you have the privilege and opportunity to play this great and amazing game. Now, go golf!