June 5 marked the one-year anniversary of the surprise announcement by PGA. Tour Commissioner Jay
Monahan and Saudi People’s Investment Fund (PIF) headman Yasir
Al-Rumayyan that they had reached a framework agreement between the Tour and LIV golf.
So what’s happened since?
Although the agreement ended litigation between the two parties that the Tour could not financially afford, not much else that’s positive has happened. Two of the businessmen on the PGA Tour Policy Board have resigned: Jimmy Dunne and Mark Flaherty.
Dunne, was actively involved in creating the framework agreement with Monahan. Upon his exit, Dunne stated his position on the Board had become superfluous. Although Flaherty never gave a reason for his resignation, I’m sure it was similar to Dunne’s. It was clear that the Tour players on the board had stopped listening to the businessmen.
Players are incredibly skilled at playing the game. But I can’t believe they’re the most qualified bunch when it comes to negotiating a billion-dollar business deal. Yes, it’s their tour, and they deserve to have a voice in what is negotiated. But they shouldn’t be the loudest voice.
The framework agreement is the creation of PGA Tour Enterprises, a for-profit entity of the Tour. The PGA Tour Policy Board is a non-profit entity.
One positive is the $3 billion investment in the Tour by the Strategic Sports Group (SSG), comprised of a number of sports team owners and investors headed by John Henry, principal owner of the Boston Red Sox. SSG also owns the Liverpool Football Club and the National Hockey League’s Pittsburgh Penguins.
Of their initial $1.5 billion investment, $1 billion will be used to compensate current and some past players, based on career accomplishments, recent achievements, cultural popularity and future participation and services.
Translation: This is compensation for players who, despite receiving offers to jump to LIV, stayed with the PGA Tour. Supposedly, Tiger will get $100 million, Rory $50m, Justin Thomas and Jordan Speith $30m, of equity in PGA Tour Enterprises. Close to 200 players will receive a bonus, with $750 million going to the top 36 players.
To receive that money, players must stay loyal to the PGA Tour, with the funds invested over the next 8 years. An additional $100 million per year will be awarded to players going forward.
Obviously, this is a huge reward for pledging loyalty to the Tour, and goes a long way to make players feel valued.
But there are roadblocks in the war between the tours. A major one, if an agreement is reached and the tours coexist, do the players who jumped to LIV get the green light to rejoin the PGA Tour?
A large number of Tour players are adamant that those who jumped to LIV should be assessed a penalty for leaving before they are allowed back. Some question whether they should even be allowed back.
Another roadblock: LIV is totally committed to the team golf concept and it doesn’t sound like they’re willing to move forward without it.
I don’t know about you, but team golf doesn’t get me very excited. I look forward to the Ryder Cup every two years, as do most golf fans in America and Europe, and the huge TV ratings show that to be true. The Presidents Cup isn’t on the same popularity scale, maybe because it lacks the Ryder Cup’s history, but I still look forward to watching.
Team golf on a regular basis, however, does absolutely nothing for me.
The two sides met in person June 7 in New York. How’d it go? “We’re making progress,” was the answer. Despite Monahan’s post-meeting statement that the goal is to “develop a shared vision for the future of professional golf,” the fact remains LIV’s long-range vision of professional golf and the vision of the PGA Tour aren’t even in the same ballpark. It’s going to take more than a few months to reach a deal.
Negotiations, understandably, have not been at all transparent. This is much more complicated than a business merger. Players on both sides have strong feelings. The players who accepted LIV offers had their PGA Tour memberships suspended indefinitely. Some of the defecting players trashed the Tour on their way out the door.
Jon Rahm probably thought signing with LIV might expedite the peace. It has not. Many believe it drove the two sides farther apart.
I will be surprised if a final deal is reached before 3-to-5 years.
I understand golf fans’ (and TV networks) desire to have all the best players in the world competing every week. But at what cost?
Is it worth compromising the historical significance, meritocracy and legacy of the PGA Tour?
I don’t think so!
Bob Green continues to enjoy his retirement after 41 years as head golf professional at Tedesco Country Club. Write to him at bgreen49@aol.com
