LIV Golf

Subterms

    More stories

    • 138 Shares139 Views

      in Golf

      PGA Tour Board Meets To Discuss Merger With Saudi-Backed LIV Golf

      by

      The 11-member board did not vote on the surprise pact, whose most significant details are still being negotiated.The PGA Tour’s board, with its members gathered in the same room for the first time since a fraction of them negotiated a deal with Saudi Arabia’s sovereign wealth fund to reshape golf, signaled Tuesday that it intended to move ahead with the agreement and past an outcry that has stretched from clubhouse locker rooms to Capitol Hill.But it also made plain that closing the deal was no certainty.The board, as expected, did not vote on a deal stocked with tentative terms that call for a web of golf businesses — including the tour, the Saudi-backed LIV Golf circuit and the European Tour, now known as the DP World Tour — to be housed in a new company. The entity is expected to be flush with Saudi cash but, for now, under the day-to-day control of PGA Tour leaders. But executives hoped that the regular meeting of the board, which is expected to weigh the pact formally only once final terms are negotiated, would help stabilize the tour’s course during a turbulent run of internal division and global scrutiny.That period, executives and board members know, could last for months.Tour executives, the board said in a carefully worded statement Tuesday night, have “begun a new phase of negotiations to determine if the tour can reach a definitive agreement that is in the best of interests of our players, fans, sponsors, partners, and the game overall.”The board, wary of further alienating the players who make up the tour’s membership, some of whom were infuriated after being blindsided by news of the pact, said it was “committed to the safeguards in the framework agreement that ensure the PGA Tour would lead and maintain control of this potential new commercial entity.”The board’s meeting came three weeks after the surprise announcement of the deal, and one day after the tour gave a Senate subcommittee a copy of the five-page framework agreement. The tentative accord, signed in the early-morning hours of May 30 at a Four Seasons hotel in San Francisco, capped seven weeks of secret negotiations, but it was mostly notable for how few binding commitments it included — and how many consequential details remained to be sorted through.Although the tour and the wealth fund are expected to contribute their golf ventures, like LIV, into the new company, the deal’s architects signed the framework agreement so quickly that no valuations were included or, apparently, even completed in advance. The agreement does not quantify the scale of the wealth fund’s expected investment in the new company, though it offers an outline for its leadership structure and protects the Saudi fund’s investment rights.Its few binding clauses include a nondisparagement pledge covering the tour and the wealth fund (but not the players) and a truce that keeps the rival circuits from recruiting golfers from one another. If a final agreement is not in place by the end of the year, barring a mutual extension, the tour and the wealth fund can “revert” to their businesses without any financial penalty, like a breakup fee.Board approval, if it comes, does not guarantee that the deal will last. The Justice Department’s antitrust regulators are among the government officials examining the accord, and they could ultimately try to block it. The pact is also poised to draw scrutiny next month on Capitol Hill, where a Senate subcommittee has scheduled a hearing for July 11.But Tuesday’s meeting was seen as pivotal to the way forward for the tour and an 11-member board that includes five players and luminaries in business, law and finance. Only two members of the board, Edward D. Herlihy and James J. Dunne III, were involved in the negotiations that led to the deal, and it appears many board members did not know they were underway.The board meeting, held at a Detroit-area hotel, began in the early afternoon and stretched into the evening. A person familiar with the meeting, who spoke on the condition of anonymity to describe a private gathering, said it had not focused entirely on the deal; rather, the person said, the board also spent significant time on more technical matters of the sport, such as competition cuts and eligibility.The majority of the meeting focused on the framework agreement, though, with board members receiving a briefing from the tour’s bankers about how they will try to assign values to the circuit’s varied assets. Jay Monahan, the PGA Tour commissioner, was absent from the meeting in Dearborn; on June 13, the tour announced that he was going on leave as he recuperated from an unspecified “medical situation.”Board members did not comment as they left the meeting, allowing the statement to stand on its own. Only one player who sits on the board, Rory McIlroy, has publicly suggested any measure of support for the deal. In recent weeks, other players have said they wanted to learn more about the accord and what it would mean for the tour.But board members have been told in recent months that the tour could not afford to maintain its duel with LIV, the league founded with billions of dollars from the Saudi wealth fund that enticed some of the game’s biggest stars with guaranteed contracts and enormous prize money. The wealth fund was also facing some pressure as it confronted setbacks in a court battle against the tour, and as LIV struggled to attract audiences and attention in the United States for reasons beyond its financial backer.If the deal collapses, though, both sides have already secured a mutual victory: the dismissal of litigation in California after the tour, the wealth fund and LIV agreed to drop their clashing cases. The dismissals were made with prejudice, meaning that they cannot be refiled, even if the rest of the pact disintegrates.For as guarded as the tour’s statement was on Tuesday night, the dismissal of the litigation was mentioned in its very first sentence. More

    • 163 Shares99 Views

      in Golf

      Details of PGA Tour and Liv Golf Merger Reveal What’s Left to Settle

      by

      The five-page agreement provoked a furor but included only a handful of binding provisions.The PGA Tour’s tentative deal with Saudi Arabia’s sovereign wealth fund included only a handful of binding commitments — such as a nondisparagement agreement and a pledge to dismiss acrimonious litigation — leaving many of the most consequential details about the future of men’s professional golf to be negotiated by the end of the year.The five-page framework agreement was obtained Monday by The New York Times. The proposed deal, announced on June 6 by the tour and the wealth fund, the financial force behind the renegade LIV Golf circuit, has caused an uproar throughout the golf industry. But a review of the agreement points to the rushed nature of the secret, seven-week talks that led to the deal and the complex path that remains ahead for the new venture, a potential triumph for Saudi Arabia’s quest to gain power and influence in sports and, its critics say, to distract from its reputation as a human rights abuser.Most crucially, the tour and the wealth fund must still come to terms on the values of the assets that each will contribute to their planned partnership. Bankers and lawyers have spent recent weeks beginning the valuation process, but the framework agreement includes no substantive details of projected figures or even the size of an anticipated cash investment from the wealth fund.Instead, much of the agreement focuses on the basic structure of the new company that is to house what the accord describes as all of the “commercial businesses/rights” of the PGA Tour and the European Tour, now known as the DP World Tour.The wealth fund is expected to contribute its “golf-related investments and assets,” including the LIV circuit that split the sport, and will have the first opportunity to invest in the new company. The tentative agreement says that the PGA Tour is to maintain “at all times a controlling voting interest” in the new company, but that Yasir al-Rumayyan, the wealth fund’s governor, will serve as the chairman of the new joint entity. Jay Monahan, the PGA Tour commissioner who recently went on leave because of an unspecified “medical situation,” is in line to become its chief executive.The new company, according to the agreement, could pursue “targeted mergers and acquisitions to globalize the sport” and may look to incorporate “innovations from LIV,” such as the team golf concept that the league has championed since it debuted last year.Those provisions, though, are not binding until the tour and the wealth fund strike a final agreement. Instead, the only ironclad caveats of the agreement involve seeking the dismissal of litigation, a mandate fulfilled on June 16; a ban on recruiting players to rival circuits; a deadline of Dec. 31 to sign final accords, absent a mutual extension; and confidentiality and nondisparagement clauses.The effective gag agreement appears far-reaching and prohibits the tour and the wealth fund from “any defamatory or disparaging remarks, comments or statements” about the other side and any “ultimate beneficial owners” — a phrase that could be interpreted to include the Saudi government, which the tour had previously condemned for its human rights record.“I recognize everything that I’ve said in the past and in my prior positions,” Monahan, a leading architect of the deal, said this month. “I recognize that people are going to call me a hypocrite. Anytime I said anything, I said it with the information that I had at that moment, and I said it based on someone that’s trying to compete for the PGA Tour and our players. I accept those criticisms, but circumstances do change.”Saudi officials have denied that their investments in sports, which include efforts in soccer, Formula 1 racing and boxing, are intended to sanitize the kingdom’s reputation. Instead, they have depicted those investments as a glossy component of a sweeping effort to diversify the country’s economy under Crown Prince Mohammed bin Salman, the kingdom’s de facto leader who is also the wealth fund’s chairman.Al-Rumayyan, the wealth fund’s governor, signed the agreement on behalf of the Saudis, with no evidence of direct involvement by Greg Norman, LIV’s commissioner.Monahan and Keith Pelley, the DP World Tour’s chief executive, effectively represented the golf establishment when they signed the deal behind closed doors in San Francisco on May 30. It was sprung upon almost the entire golf industry, including most of the PGA Tour’s board, a week later.The board, which has been considering the deal that it was largely shut out of negotiating, is expected to discuss the pact’s initial terms during a meeting in Detroit on Tuesday. The 11-member board is not believed to be planning a vote yet because the final nuances of the accord may not be hammered out for months.The deal faces scrutiny well beyond the tour’s board. In Washington, Justice Department officials and congressional investigators are preparing to pore over the details of the accord, which antitrust regulators could ultimately try to block. The tour shared a copy of the agreement with a Senate subcommittee on Monday evening, just more than two weeks before a hearing on Capitol Hill that many expect to become contentious.But tour executives concluded in recent months that the new economic order that LIV’s swift rise provoked — swelling legal bills, larger prize purses, a diluted product with the world’s most marketable players competing against one another only four times a year at golf’s major tournaments — was unsustainable. They sought a détente with the Saudis and found a receptive audience in and around the wealth fund, where some officials were frustrated by a series of legal setbacks connected to LIV and uneven success in gaining traction in the crucial American sports market.The second paragraph of the framework nodded toward the turmoil, with the tour and the wealth fund saying they were interested in “ending divisions.” Some elements of the deal amounted to olive branches. In one section, for instance, the two sides agreed to “cooperate in good faith and use best efforts” to bring secure Official World Golf Ranking accreditation for LIV events.The fate of LIV, which sapped the PGA Tour of some of its star players after offering exorbitant contracts and prize purses, is not included in a binding part of the deal. Instead, the new company, if it comes to pass, is expected to “undertake a full and objective empirical data-driven evaluation of LIV and its prospects and potential.”The framework does not outline any financial penalties if the deal does not ultimately progress, but it says the tour and the wealth fund “can revert to operating their respective businesses” if the agreement collapses. More

    • 138 Shares179 Views

      in Golf

      Rory McIlroy Just Misses a Hollywood Ending at the U.S. Open

      by

      Despite briefly sharing the lead with the eventual champion, Wyndham Clark, McIlroy settled for second but vowed he would get a fifth major title.It might have been fitting if someone from Holywood won this year’s U.S. Open at Los Angeles Country Club. But Rory McIlroy, born in the Northern Ireland town of Holywood, is not having that kind of year.On Sunday, McIlroy was chasing his first major championship title in nine years, a drought that continues to shadow a luminous career that began with four major titles from 2011 to 2014. In April, he missed the cut at the Masters Tournament. A month later, he finished tied for seventh at the P.G.A. Championship.Then, on June 6, McIlroy, the most vociferous loyalist supporting the PGA Tour in its feud with the Saudi-back LIV Golf circuit, learned only a few hours before news broke that the two tours had shockingly formed a business partnership.McIlroy, like almost all of the PGA Tour’s players, felt blindsided.But on Sunday, a buoyant, smiling McIlroy, 34, was again enthusiastically chasing another major title, in the final round of the 123rd U.S. Open. He birdied the opening hole and for most of the next four hours seemed poised to reel in the eventual tournament winner, Wyndham Clark, the third-round co-leader with Rickie Fowler.McIlroy, however, never birdied another hole, and in the end, Clark, after some nervous closing moments, outlasted McIlroy by a stroke as both golfers shot even-par 70s. It was McIlroy’s third runner-up finish at a major and his 10th finish in the top five of a major since 2014.“I fought to the very end, and I’m getting closer,” McIlroy said Sunday of his chase for a fifth major title, adding: “I just got to keep putting myself in these positions and, you know, sooner or later it’s going to happen for me.”McIlroy said he felt a link between his performance on Sunday and his second-place finish at last year’s British Open at St. Andrews.“The last two real chances I’ve had at majors have been pretty similar performances,” he said. “Not doing a lot wrong.”McIlroy’s pursuit went down to the final strokes of the event, as Clark, playing in the final group of the day, was forced to execute a two-putt from 60 feet on the 18th green to clinch the championship.“I fought to the very end, and I’m getting closer,” McIlroy said of his chase for a fifth major championship.Michael Madrid/USA Today Sports Via Reuters ConMcIlroy conceded that he was hoping for a miscue.“You don’t want to wish bad on anyone, but you’re really hoping for a three-putt,” he said. “You’re hoping to somehow get into a playoff to keep giving yourself a chance. You’re rooting for one guy, and that guy is yourself at that point. A mistake can give you a glimmer of hope.“But Wyndham was pretty much rock solid all day, and that was a great two-putt at the last.”McIlroy’s fourth round began auspiciously as he reached the green on the par-5, 585-yard first hole with his second shot and two-putted for an opening birdie that briefly moved him into a tie for the tournament lead.But he struggled to capitalize on that early momentum even as he registered par after par — a streak of 12 in all. He showed nerve in sinking several tense four-foot par putts but failed to get his approach shots close enough for easier birdie attempts.McIlroy was hanging on but could not convert any putt longer than seven feet throughout the middle of his round. On the eighth green, he pulled an eight-foot birdie putt well left of the hole, a missed opportunity that McIlroy specifically mentioned in his post-round news conference.At the par-3 ninth hole, McIlroy’s towering approach shot with an iron came to rest 14 feet from the flag. As he walked onto the green, fans in two packed grandstands implored him to make a fairly straightforward putt that would have put him in a tie with Clark, but again McIlroy could not seize the moment.McIlroy’s run of consecutive pars ended at the par-5 14th hole after his tee shot bounded into the rough left of the fairway. He was forced to lay up short of the green with a second shot, although he then faced a short wedge shot to the green.McIlroy later said he was choosing between two clubs for the shot, but he felt a wind gust just before he began his swing, and that impeded the shot’s momentum.“I had the right club, but I might have just had to wait an extra 15 or 20 seconds to let that little gust settle,” he said.McIlroy caught a break on No. 14 when his ball embedded in a grassy bank.Richard Heathcote/Getty ImagesMcIlroy’s golf ball landed about a foot short of perfect and failed to clear a large bunker protecting the front of the 14th green. The ball embedded in a grassy bank between the sand and the green.He was granted free relief in the grass to the right of the bunker, but his dicey, downhill chip to the green rolled 26 feet from the hole. That led to bogey, and McIlroy fell to nine under par, which extended Clark’s lead to two strokes.McIlroy closed with four routine pars.He was asked at the conclusion of his Sunday news conference if he was growing weary of answering questions about the nine-year wait for a fifth major championship victory. He conceded that it was exhausting but added: “At the same time, when I do finally win this next major, it’s going to be really, really sweet. I would go through 100 Sundays like this to get my hands on another major championship.” More

    • 138 Shares119 Views

      in Golf

      It’s Sunday at the U.S. Open, and the Leaders Are Tied

      by

      Los Angeles Country Club has sometimes seemed forgiving. But the final round could pose a formidable test for the contenders.The LatestThe U.S. Open, one of golf’s most fearsome tests, is headed into its final round at Los Angeles Country Club. Although the course has sometimes seemed more forgiving than past Open venues, any championship round has the potential to become excruciating — especially when the final round starts with a tie atop the leaderboard.Rickie Fowler, who shot an even-par 70 in the third round, left the course Saturday evening knotted with Wyndham Clark, who birdied the 18th hole to go to one under on the day. Both men are at 10 under for the week, leaving them with one-stroke advantages over Rory McIlroy.Golf is expecting its third major tournament champion of 2023, with Jon Rahm, who won the Masters Tournament, and Brooks Koepka, who won the P.G.A. Championship, far down the leaderboard.Wyndham Clark ended the third round of the U.S. Open tied for the lead.Etienne Laurent/EPA, via ShutterstockWhy It Matters: Someone will earn a(nother) place in sports history by sundown.Of the players in the top five, only McIlroy and Scottie Scheffler have won majors.McIlroy’s last major victory was in 2014, and a win on Sunday would be his fifth major title. Scheffler, the world’s top-ranked player, won the Masters in 2022; he rocketed up the Los Angeles leaderboard when he holed out from 196 yards for an eagle on No. 17. He ended Saturday at seven under, putting him three strokes off the lead.But Fowler is a perpetually popular talent with a long history of close-but-not-quite major finishes. On Thursday, he, along with Xander Schauffele, shot a 62, an Open record. Fowler elicited gasps on Saturday when he sank a 69-foot birdie putt on the 13th hole. He provoked groans later when, at No. 18, he missed a par putt of less than five feet.Clark is playing his third U.S. Open, and this is the first time he has made the cut. His best showing in a major before this one? A tie for 75th at the 2021 P.G.A. Championship.Harris English, who trails Fowler and Clark by four strokes, came close in that year’s U.S. Open, finishing third.Rickie Fowler missed a putt for par of less than five feet on the 18th hole on Saturday.George Walker Iv/Associated PressBackground: The U.S. Open is taking place during a period of turmoil in golf.With the major tournaments offering some of the biggest prizes in golf and the surest paths to greatness — Koepka noted this past week that a golfer’s tally of major victories is what his career is “judged on” — players ordinarily like to focus on golf, and golf alone.That has not been so easy at this Open. On June 6, the PGA Tour and Saudi Arabia’s sovereign wealth fund, the force behind the LIV Golf circuit that divided the sport, announced a plan to form a partnership. The deal, if it closes, could end golf’s most bruising clash in generations, but it has already led to widespread uncertainty about the future of the game.In public and in private, players have spent much of the past two weeks mulling what that future might look like.For what it’s worth, the PGA Tour and LIV are knotted at one major victory each this season: Rahm plays for the tour, while Koepka is a headliner for LIV.What’s Next: 18 holes for everyone — and, perhaps, the first playoff since 2008.NBC will air final-round coverage beginning at 1 p.m. Eastern time. The tournament’s presence on the West Coast means the Open will not be settled until well into the evening in much of the United States, with the championship expected to be decided by about 10 p.m. Eastern time.All bets are off, though, if there is a tie at the top after everyone has finished 72 holes.The Open has not reached a playoff since 2008, when Tiger Woods won at Torrey Pines. The format has since changed: If the leaders are tied after regulation play, there will be a two-hole aggregate playoff, contested on the first and 18th holes. If the leaders are still knotted after those two holes, a sudden-death competition will commence. The idea is to have a winner on Sunday evening, not Monday, as has happened in past Opens. More

    • 138 Shares119 Views

      in Golf

      For PGA Tour Players, Betrayal and Confusion in Saudi Deal’s Wake

      by

      Members of America’s most famous golf tour thought they had a voice. Then came a surprise pact that could reshape the sport for years to come.The U.S. Open winner Gary Woodland had lately sensed something different in professional golf.Players were empowered and emboldened. Executives were listening. The PGA Tour was changing. With the circuit’s dominance challenged by LIV Golf, an upstart built with billions of dollars from Saudi Arabia’s sovereign wealth fund, the tour felt closer to a cooperative than a dispassionate titan of professional sports.Then came the tour’s surprise announcement on June 6 that, after it had lobbied players to forsake the Saudi money it had associated with human rights abuses, the PGA Tour and the wealth fund would join forces. None of the five players who sit on the tour’s board learned of the deal more than a few hours before it became public.“It was turning toward players being heard over the last year,” Woodland, who became a professional golfer in 2007, said at the Los Angeles Country Club, where the U.S. Open will conclude on Sunday. June 6, he said, showed that the voices of tour players had suddenly been “thrown out the door a little bit.”Woodland is not an outlier. In interviews and during news conferences at the Open, top players described a shaken faith in a PGA Tour they believed had recently offered them more meaningful agency and greater influence. The tour’s ability to ease the restive atmosphere could influence whether the deal, which is facing significant skepticism inside the tour and in Washington, advances in the coming months.Compared to other prominent professional sports leagues in the United States, the PGA Tour, a tax-exempt nonprofit, has an unusual structure.Unlike in, say, the N.B.A. or the N.F.L., there are no team owners, and there is no labor union. Instead, players are independent contractors who earn eligibility for PGA Tour membership. Tour members do not generally have financial guarantees — they may, however, earn money through assorted sponsorships — but receive tour paychecks tied to their on-course performances. (When Viktor Hovland won the Memorial Tournament this month, he earned $3.6 million of the event’s $20 million prize fund. Golfers who did not play well enough to secure places in the final two rounds collected nothing.)In return for access to tour events and purses, players allow the circuit to negotiate television rights deals on their behalf, among other conditions. Even without a labor union, players theoretically have a say in tour operations: The 11-member board includes five seats for players, and there is a 16-player council that “advises and consults” with board members and the tour’s commissioner, Jay Monahan.But when tour leaders negotiated a framework agreement to reshape the sport in the most consequential ways since the modern tour’s founding in the 1960s, players were not in the room. Rory McIlroy, the world’s third-ranked golfer and a member of the tour’s board, learned of the deal a week after it was signed behind closed doors at a Four Seasons hotel in San Francisco.Deepening the turmoil, the tentative deal makes little about the future clear, mostly because lawyers and executives are still haggling over the fine print that stands to determine much about how the sport will be organized, funded and operated.“It’s just not easy as a player that’s been involved, like many others, to wake up one day and see this bombshell,” Jon Rahm said.Marcio J. Sanchez/Associated Press“I think the general feeling is that a lot of people feel a bit of betrayal from management,” said Jon Rahm, the winner of this year’s Masters Tournament.“It’s just not easy as a player that’s been involved, like many others, to wake up one day and see this bombshell,” he added. “That’s why we’re all in a bit of a state of limbo because we don’t know what’s going on and how much is finalized and how much they can talk about, either.”The sense of duplicity, some players suggested, might not be so severe had they not grown confident in the notion that they were increasingly central to developing the tour’s path for the years ahead.As Tiger Woods receded from golf’s spotlight, Woodland observed, players found their sport searching for figures to help set its tone and direction.“When I first started, you just went out and played and who knows what was going on,” said Woodland, who remains close to Woods. “It was pretty much everyone jumped on Tiger’s coattails and we just went.” More recently, Woodland said, “guys are starting to get a little more of their own voice, and you’re starting to see different opinions.”Faced with the rise of LIV Golf, players had helped devise changes to the tour’s format and schedule. During a private meeting in Delaware last summer they tried to hash out adjustments that could help curb an exodus to LIV. Afterward, Monahan declared that the Delaware meeting “represents a remarkable moment for the PGA Tour and showcases the essence of what being a membership organization is all about.”By the middle of last month, though, Monahan was in Venice for secret talks with Yasir al-Rumayyan, the governor of the Saudi wealth fund. Two board members, neither of them players, were on the trip to Italy. The men later gathered in San Francisco over Memorial Day to finish up the framework deal. Afterward, the circle of people who knew about the planned partnership expanded, but did not include any players until June 6, when tour and Saudi officials announced the pact. Some players learned about it on Twitter.The mood inside the tour only worsened as it became apparent that the deal had been constructed in extraordinary secrecy, with players’ representatives on the board shut out of the talks.Joel Dahmen said he recognized that voices of midlevel players like him would receive only so much priority in the tour’s strategic deliberationsEtienne Laurent/EPA, via Shutterstock“We were given the impression that we were being heard,” said Joel Dahmen, a professional player since 2010 whose public profile soared this year when he appeared in the Netflix documentary series “Full Swing.”Dahmen, a self-described “midlevel” guy, said he recognized that voices like his would receive only so much priority in the tour’s strategic deliberations. But many golfers were flabbergasted that even its greatest headliners were kept away from the negotiations, even as some of their colleagues said they understood that it was impractical to expect tour officials to confer with the entire membership in advance.“If you have to consult every player, then probably nothing’s ever going to happen, and that’s the balance for any organization,” said Adam Scott, the 2013 Masters winner and former world No. 1 player who chairs the tour’s Player Advisory Council. “It’s like the golf club at home: They’ve got the members’ committee, and a few on that committee get to influence decisions.”“It’s a player-centric tour,” Scott added, “but it depends where you’re sitting and how you look at things.”PGA Tour officials have rushed to quell the outrage, mindful that frustrations with the organization helped prepare the ground for LIV to entice players away from what is America’s flagship men’s golf circuit. Senior executives have been at the U.S. Open, and Monahan, who began a leave of absence this past week after what the tour described only as “a medical situation,” held a contentious meeting with players hours after the deal’s announcement.Players with some of the closest ties to Monahan and other executives said they had received a barrage of feedback unlike any they recalled. Webb Simpson, a board member who won the 2012 U.S. Open, said, perhaps with a dose of hyperbole, that he had probably heard more from players since June 6 than he had in his 15 years as a tour golfer.“We want to have unity, but we also want to trust our leaders,” said Simpson, who added that he had been calling players to hear out their misgivings and aggravations. “I think as a whole they are struggling with these decisions.”“It’s a player-centric tour,” Adam Scott said, “but it depends where you’re sitting and how you look at things.”Richard Heathcote/Getty ImagesAlthough McIlroy has signaled his support for the deal, other players with board seats have been publicly noncommittal.“I told myself I’m not going to be for it or against it until I know everything, and I still don’t know everything,” Simpson said.He sounded much like Patrick Cantlay, another board member, who said that “it seems like it’s still too early to have enough information to have a good handle on the situation.”The board is scheduled to meet later this month, but it is not clear whether the pact will be ready for a vote by then. At the very least, board members are expecting a briefing that might allow them to answer more detailed questions about the tour’s future.All players can do for now, many said, is to try to imagine what the tour might look like and where they might fit into a changed ecosystem.“Where I think I am — and a lot of other players are — is we’re going to show up at the biggest and best events that we have tee times at, the ones that pay the most money, and we’re going to go play until someone tells us we can’t play in those events anymore, and then we’ll go find other events,” Dahmen said.They are also settling in for a protracted period of uncertainty, grappling with the possibility that the tour could be in turmoil for another year or more. It is an unfamiliar road for many of them, after all of these years in which the tour was the unquestioned destination of choice for many of the world’s top golfers, its business model familiar.“As members or as players,” Scott said, “we haven’t had to deal with anything like this before.” More

    • 150 Shares149 Views

      in Golf

      PGA Tour and LIV Golf Seek to Drop Litigation Against Each Other

      by

      Although the tour’s deal with the Saudi wealth fund has not closed, the request to a federal judge was a milestone in golf’s surprise détente.The PGA Tour, LIV Golf and Saudi Arabia’s sovereign wealth fund asked a federal judge in California on Friday to dismiss the litigation that catapulted golf’s economic and power structure into the American court system.The request to dismiss the case with prejudice, meaning that it cannot be refiled, came less than two weeks after the tour and the wealth fund, which bankrolled LIV, announced a tentative agreement to form a partnership. Although the deal may not close for months and faces mounting scrutiny in Washington, Friday’s submission in Federal District Court in San Jose, Calif., was a milestone in the abrupt détente between the rival circuits.Judge Beth Labson Freeman, who has been overseeing the case, is expected to approve the request, a cornerstone of the tentative agreement between the tour and the wealth fund. By abandoning the litigation, LIV, the PGA Tour and the wealth fund are limiting the potential for damaging revelations and surging legal bills, as well as closing off one avenue for recourse if the new alliance falls apart.Justice Department officials, who were already conducting an antitrust inquiry into men’s professional golf, are expected to review the deal closely and could even try to block it or compel changes to it. At least two Senate panels are demanding information about the planned transaction and its consequences, and the deal has not even secured the approval of the PGA Tour’s board.Much about the agreement itself also remains in flux, including the valuations of the assets of the tour, LIV and the DP World Tour, formerly the European Tour, that are to be housed inside the new for-profit venture. The tour’s commissioner, Jay Monahan, is expected to serve as the company’s chief executive, and Yasir al-Rumayyan, the wealth fund’s governor, is poised to be its chairman. The PGA Tour expects to hold a majority of the seats on the new company’s board, but the wealth fund will have extensive power over how it is bankrolled, assuring the Saudis of significant influence.Until June 6, when the deal was announced, the PGA Tour had warned against allowing Saudi money and influence to take hold in golf, fueling California litigation that had a costly, complicated life.The acrimonious proceedings began last August, when 11 LIV players, including the major tournament champions Phil Mickelson and Bryson DeChambeau, brought a lawsuit that accused the tour of violating antitrust laws. LIV itself joined the case later that month.The tour also pursued its own claims against LIV, which it said had improperly interfered with existing contracts with players. The tour later received Judge Freeman’s approval to expand its case to include the wealth fund itself and al-Rumayyan, just one of the rulings that placed pressure on the Saudis and their allies, whose superior financial resources put the tour under immense strain.The tour, the wealth fund and LIV waged a ferocious battle over evidence collection in the case, and many filings in the case were redacted, but a federal magistrate judge concluded this year that the wealth fund was “the moving force behind the founding, funding, oversight and operation of LIV,” undercutting its contention that it was a passive investor in golf.A trial had not been expected until at least next year.Hours before Friday’s filing from the tour and LIV, The New York Times filed a motion that asked the court to unseal records in the case. The Times cited a “substantial and legitimate public interest in these proceedings and their outcome” and suggested that the planned partnership could make concerns of competitive harm moot.“To the extent that competitive harm existed at the time of sealing, those justifications may not apply with the same force today — or upon completion of the parties’ anticipated merger,” The Times’s filing said. “Sealing is a decision that can and should be revisited as facts change and circumstances require.”It was not clear when the judge would rule on either of Friday’s motions. More

    • 150 Shares119 Views

      in Golf

      Our Golf Reporter Didn’t See the PGA Tour-LIV Golf Deal Coming, Either

      by

      The announced deal to drastically change golf took nearly everyone by surprise.Times Insider explains who we are and what we do and delivers behind-the-scenes insights into how our journalism comes together.Alan Blinder’s plans blew up around 10 a.m. last Tuesday.Mr. Blinder, who covers golf for The New York Times, had just settled in at his home office when he received a heads-up from a source with some gobsmacking news: The PGA Tour and LIV Golf, the insurgent league bankrolled by billions of dollars from Saudi Arabia’s sovereign wealth fund, had agreed to a partnership, suspending a bitter and costly struggle for supremacy of men’s professional golf.“I shouted down the hall to my wife that LIV and the PGA Tour were joining forces, and that I probably wouldn’t be around for dinner,” Mr. Blinder said in an interview. “And then I got to work.” He barely left his desk for the next 13 hours.Below, Mr. Blinder shares how he pivoted from shock to covering the news, the implications of the deal beyond sports and the questions he still has heading in to the U.S. Open, which begins today at the Los Angeles Country Club. These are edited excerpts from the conversation.How surprised were you?It was one of those things that people thought was a distinct possibility at some point in the future, but all the reporting we had done, all the signals were that the tour and LIV were preparing to fight each other in court for the foreseeable future. There was a monstrous case in a federal court in California involving contract interference and antitrust law. And suddenly that was all set to vanish.Who was the first person you called?My editors, to tell them that their day was about to get blown up, too. We published an article reporting the news less than 10 minutes after I told my editors, and that soon grew into live coverage. Once the news was published, I tried to figure out, in detail, what on earth had happened and what it meant. Because the announcement was steeped in legalese and jargon, I spent the rest of the day on the phone with sources and experts both inside and outside of golf just trying to understand what this framework agreement meant.Why is this happening now?The most significant factor is that the PGA Tour was under increasing financial strain. I’m not saying the tour was going to go broke tomorrow, but I think the tour realized it was in an exceptionally expensive fight that was not going to get any easier. Saudi Arabia’s sovereign wealth fund has gobs of money, but it wasn’t entirely smooth sailing from its perspective, either. LIV had faced some pretty significant setbacks in court.Who stands to benefit the most from the deal?It depends on your perspective. The PGA Tour is arguing that it’s going to have a majority of the board seats and its commissioner, Jay Monahan, as the new company’s C.E.O. Its supporters are insistent that they still control the game of golf, that they are the majority stakeholder in this endeavor. But the Saudis have significant influence. The governor of Saudi Arabia’s wealth fund, Yasir al-Rumayyan, is going to be this new entity’s chairman, and the Saudis have extensive rights to invest in this partnership. How this actually looks going forward remains to be seen.Will we see a loosening of PGA Tour standards to align more with the LIV Golf version of the game, which includes music at events, looser dress codes and no cuts of golfers?The PGA Tour is saying that it still has control over all the competition and play. We’re not expecting the overarching rules of golf to change, in part because the tour doesn’t control them. Could you see some elements of LIV borrowed and integrated into the PGA Tour? Perhaps. The PGA Tour is trying to appeal to a younger audience and broaden the appeal of the game.There have been vows from Washington to slow or stop the deal — or, at least, make it very uncomfortable for golf executives. What are the odds that lawmakers will succeed in blocking the deal?A lot of experts expect the Justice Department to go to court to try to either block the deal or insist upon changes. This is also somewhat unusual because it’s not like this deal was announced last week and suddenly the Justice Department was intrigued by pro golf. Their antitrust folks had already spent months and months and months looking at professional golf. So they have a bit of a head start if they really want to scrutinize this deal.Why should people who don’t follow golf care?This is a golf story, but it’s a story that could play out in other sports going forward. Is it possible that we will see Saudi Arabia or other wealthy states try to make their mark on other sports?This is not just a story of sports, or business, or geopolitics. It’s a story that includes all of those different threads and more. We had a big article in Monday’s paper that had four bylines on it, and only two of them were the bylines of sportswriters.What are the biggest questions you have going forward?Beyond tour memberships and where you play, how does golf kind of take a breath after all this tumult? The golf industry is a pretty small world. A lot of people know one another well and have known one another for a long time, so they’ve really been shaken up over the last year. So one of the big questions is, when do all these wounds get patched up? More

    • 125 Shares119 Views

      in Golf

      U.S.G.A. Steadfast in Plan to Curb Pro Golfers’ Driving Distances

      by

      Players are objecting to a proposed change from golf’s rulemakers to use new balls, but the U.S. Golf Association said Wednesday it would not abandon the plan.The United States Golf Association acknowledged Wednesday that it had heard ferocious opposition to its proposal for professional players to use balls that travel shorter distances — but it also signaled no interest in abandoning its ambitions to rein in equipment in the next several years.The association and the R&A, a governing body based in Britain, had in March proposed a rule that they estimated could trim top golfers’ tee shots by an average of about 15 yards. Framed as an effort to preserve the sport and the relevance of many of its finest courses, the proposal provoked a backlash among hard-driving professionals, who are routinely hitting tee shots at distances that were all but unimaginable only a few decades ago, and equipment manufacturers, who relish selling weekend duffers the same balls the stars strike at events like this week’s U.S. Open.“Our intent is pure; it’s not malicious,” Fred Perpall, the U.S.G.A.’s president, said at a news conference at the Los Angeles Country Club, where the Open will begin on Thursday. “We’re not trying to do something to damage anyone. We’re thinking about all the good that this good game has given us, and we’re thinking about what is our responsibility to make sure that this game is still strong and healthy 50 years from now for our children’s children.”The debate about distance in golf has played out for years, with executives increasingly irritated with stopgap fixes, like redesigning holes to accommodate the game’s most potent hitters. Some of the sport’s retired greats, including Jack Nicklaus and Gary Player, have pressed golf’s rule book writers to take blunt and urgent action.“Not everybody’s got the ability to go buy the golf course next door, like you do at Augusta,” Nicklaus said in an interview with The New York Times at the Masters Tournament in April. “You can’t just keep buying land and adding. We used to have in this country probably a couple of thousand golf courses that could be tournament golf courses. Today, we maybe have 100.”In the 2003 season, PGA Tour players recorded an average driving distance of about 286 yards, with nine golfers, including Phil Mickelson, Vijay Singh and John Daly, typically hitting at least 300 yards off the tee. So far this season, the tour’s average driving distance stands at nearly 298 yards. Some 91 players — up nearly 10 percent since the U.S.G.A. and the R&A released their proposal — exceed 300 yards on average.Under the plan, balls that travel more than 317 yards when struck at 127 miles per hour would generally be banned.The U.S.G.A. and the R&A are gathering feedback about their proposal, which would not take effect until at least 2026 and would be classified as a model local rule, empowering individual tours and events to adopt it. The U.S.G.A. and the R&A would almost certainly impose the rule at the events they control, including the U.S. Open and the British Open, two of the four men’s major championships.But other golf power brokers, including the PGA Tour, have not embraced the plan, and many of the game’s biggest stars have openly resisted the thought of deliberately curbing distance.Even those who have been receptive to the prospect of making balls seem a little less like long-distance missiles have urged golf’s leaders to have a consistent standard throughout the game, without differences for top-tier professionals.Under the plan, balls that travel more than 317 yards when struck at 127 miles per hour would generally be banned.Desiree Rios/The New York Times“I just don’t think you should have a ball for the pros that might be used some tournaments, might not be used some tournaments, then amateurs can buy different golf balls,” said Matt Fitzpatrick, who won last year’s U.S. Open. “I don’t think that would work.”Tour players recently met privately in Ohio with U.S.G.A. officials and manufacturers to discuss the proposal, and Patrick Cantlay, who is No. 4 in the Official World Golf Ranking, said this week that “tensions were high” in those sessions.“Seems like golf is in a good spot, and doing anything that could potentially harm that would be foolish,” Cantlay said.Mike Whan, the U.S.G.A.’s chief executive, said Wednesday that he was sensitive to the concerns bubbling up from players and suggested that the governing bodies could tweak their proposals in the months ahead. But he emphasized that the U.S.G.A. is also concerned about the millions of golfers who are not professionals and neither he nor Perpall indicated plans for a wholesale surrender.“If you’re going to take on significant governance decisions that you think are going to help the game be stronger in 20 and 40 years, you can’t expect everybody to like those decisions, and that’s part of governance,” Whan said. “You have to decide whether or not you can stand up for what you think is the game long-term, knowing that maybe 20 percent or 30 percent or 50 percent like it and the others don’t. But I think the feedback process is important and it makes us better. Even when we don’t like the feedback we get, it makes us better.”Whan and Perpall’s impassioned defense unfolded as one of golf’s most influential figures, Jay Monahan, the PGA Tour commissioner, was absent from the U.S. Open course. The tour disclosed late Tuesday that he was “recuperating from a medical situation” and that two other executives, Ron Price and Tyler Dennis, had indefinitely assumed day-to-day oversight of the circuit’s operations.The announcement that Monahan had stepped back followed seven days of turmoil in professional golf. Last Tuesday, the tour announced that it planned to partner with Saudi Arabia’s sovereign wealth fund, the force behind the LIV Golf league that upended the sport, after months of depicting Saudi money as tainted. Monahan, who helped to negotiate the deal, was criticized as a cash-hungry hypocrite, but he has retained at least some crucial allies inside the tour.“Jay is a human being,” Webb Simpson, the 2012 U.S. Open winner and a member of the tour’s board, said in an interview on Wednesday. “Golf is a game, and oftentimes, we make golf into something so much bigger than it is and we dehumanize people.” Perhaps, he said, Tuesday’s announcement would give “people a little perspective.”But Simpson said he knew nothing about Monahan’s status beyond the tour’s initial statement. The tour has declined to elaborate on it or to give a projected timeline for Monahan’s return.Price and Dennis said in a statement that their priority was “to support our players and continue the work underway to further lead the PGA Tour and golf’s future.”In its own statement on Wednesday, the wealth fund “committed to working closely with the PGA leadership and board to advance our previously announced transaction to invest significantly in the growth of golf for the benefit of players, fans and the expansion of the game around the world.” More