LIV Golf And PGA Merger Begins A New Era In Golf And Sportswashing

In a game-changing move, the Professional Golfers’ Association (PGA) and LIV Golf have set aside their differences and are merging into one unified conglomerate. The fusion of these entities represents a pivotal moment in golf history, signifying a push towards unity in an industry often marked by segmentation and rivalry. But the significance goes far beyond the merger of two rival tours. It will usher in a new era of middle eastern investment in USA sports properties that some have characterized as “sportswashing” which means an attempt to distract from human rights violations that many accuse countries in the middle east of perpetrating.

There is no question the middle east is committed to making huge investments in sports. It started with a massive $300 Billion investment in the 2022 World Cup and all the infrastructure built inside the country leading up to it.

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Not to be outdone, the Saudi’s have begun investing in sports and entertainment. They took a $1.1B stake in Live Nation and created a $1.8 Billion sports investment fund via its Private Investment Fund (PIF), the investment fund of the royal family. The PIF investment in LIV Golf made headlines in the USA and around the world. In announcing the merger, PGA Tour commissioner, Jay Monahan, focused solely on the message of unifying the sport. “There’s been a lot of tension in our sport over the last couple years,” he said during a recent interview with CNBC. “What we’re talking about today is coming together to unify the game of golf, and to do so under one umbrella.”

Monahan went on to say: “This transformational partnership recognizes the immeasurable strength of the PGA Tour’s history, legacy and pro-competitive model and combines with it the DP World Tour and LIV Golf— including the team golf concept — to create an organization that will benefit golf’s players, commercial and charitable partners, and fans.” In touting the benefits of the merger, he did not make reference to the source of the money behind LIV Golf but called them “a world class investor”.

However, the marriage of these two giants is not without its detractors and many golfers were opposed to LIV Golf because of the money behind the Tour. Callum Tarren, who ranks No. 159 in the world and a PGA Tour member, voiced his frustration to the Golf Channel. “It’s disappointing being a PGA Tour member… The guys who’ve stayed loyal to the PGA Tour, it’s kind of a kick in the teeth for them. Obviously, Rory [McIlroy] was a huge advocate of the PGA Tour, and now it looks like all of this hard work and sticking up for the PGA Tour was just left by the wayside.”

NBA Commissioner Adam Silver highlighted the sportswashing concerns associated with Saudi Arabia while being interviewed on the Dan Patrick Show on 06/08/23. He acknowledged that investments from the country can be seen as a “two-edged sword”. However, he also mentioned that it presented an “an opportunity to bring people together.” This is a perfectly predictable statement in light of the NBA’s decision to allow foreign investment of minority ownership stakes in NBA teams. Recently, the Qatar sovereign wealth fund acquired a roughly 5% stake in Monumental Sports, the parent company of the Washington Wizards, Washington Capitals, Washington Mystics, Capital One
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Arena and Monumental Sports Network in a deal valuing Monumental at roughly $4 billion.

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Despite these past antagonisms and ongoing concerns, the LIV Golf and PGA merger promises to reshape the landscape of professional golf. By embracing each other’s strengths and offsetting weaknesses, the unified conglomerate aims to enhance the overall experience for players, partners, and fans alike. This unification begins a new era where innovation and tradition coexist and hopefully propel golf into a prosperous future with an opportunity to bring people together as Adam Silver hopes.

Yet, the merger’s success will be tested by how well it navigates past grievances, manages the diverse expectations of its stakeholders, and handles the socio-political implications of its funding sources. It is a particularly volatile way start to a new chapter in golf, and the world will be watching closely as it unfolds. We have already seen the rippling effect in other sports and it is probably only the beginning of this intriguing new Chapter in the growth and globalization of sports underscored by its political implications.