In a remarkable turn of events, the LIV Golf Tour and PGA & DP World tours have agreed to “merge”. Did the Saudi Public Investment Fund (PIF) just acquire the PGA and DP Tours? Is it truly a done deal? Do the players have to ratify? It appears as though it means more money for the professional game. What does it mean for golf at the grass roots level? There are many questions.
Among the byproducts of professional golf is the manner in which it has attracted new players to the game at the grass roots level. Given the controversial source of funds (PIF) and all that comes with that, certainly questions surface about the potential for backlash from those troubled by association with the Saudi regime. Will those groups with sensitivities to the social, human rights, geopolitical and other issues associated with the PIF shy away from participating in, sponsoring, watching or otherwise supporting the game of golf? Will companies that have sponsored professional golf in the past suffer backlash from their clients and customers? Will those companies continue to sponsor professional golf events?
Will clubs and courses, many now thriving from the surge in golf participation see a decline, or another surge in interest, rounds and membership? One thing we must remember is that those clubs and courses thrive not from the frequent, avid golfer, but rather from the increase in casual/recreational participation. That’s where the profit is. How will equipment and apparel companies fare? Many of those troubled by the social and political issues with LIV became more supportive of the PGA Tour as a result of their resistance to LIV. How will fans react to those players who vocally opposed LIV, like Rory McIlroy? How will fans react to the most ardent LIV supporters like Phil Mickelson and others? Is “sports washing” all the sudden “OK” now that it’s under the umbrella of the PGA Tour? On the other hand, could it be a boon for the game? I saw one article already this morning that indicated golf stocks surging with the announcement of the “merger”.
What happened to cause such a seismic event? On the surface, it appears to me as though one, or both, of two things occurred. Either the PGA Tour had antitrust issues, sought the funds PIF was offering, or both. Will the “merger” solve either or both of those problems? Does the “merger” create new problems? Will some fans turn away? Will some sponsors seek other opportunities or increase their commitments? Will the enthusiasm for both the professional game and golf at the grass roots level suffer or grow?
As I (like many others) watch Golf Channel this evening and read and hear all the many “neutral” (& expected) statements of golf’s leaders, what I don’t hear is concern for the growth of golf and the health of clubs, courses, teaching and club pros, club employees and suppliers and businesses who depend on golf participation for their livelihood – the grass roots. Will the values of golf properties experience another COVID-like surge, or will golf see a recession in interest not unlike the pre-COVID period from about 2000-2020?
Is the LIV / PGA Tour marriage good for the whole game, or just high level professional tournament golf? Do the issues associated with “sports washing” loom greater or do they simply fade away? No doubt unification of the professional game, (at least in theory) is good. However, there are (again IMHO) many outstanding issues I haven’t heard or read being discussed. Time will tell what that impact is. Uncharted waters lie ahead. Stay tuned.