Jon Rahm’s appearance wearing the black jacket, came as a shocker in December. The Spaniard declared his move to LIV Golf and proved the rumors right. Now, the outcome of this action can be reduced in two ways. The first conclusion says that LIV has secured its future by signing the reigning Masters Champion and the World No. 3. This step might solidify their negotiation leverage with the PGA Tour. Also, the league offered contracts to Viktor Hovland and Ludvig Aberg, but the Ryder Cup Patriots denied them.
The second conclusion is that LIV has gotten the green jacket; thus, a deal with them is inevitable. The PIF will partake in and invest in the PGA’s unified entity. But, in this entire scenario, there are colliding events between both circuits and one has to compromise.
As the talks are underway, it seems the negotiations will need more time, and thus, the deadline has to be pushed. Although Jay Monahan and Tiger Woods wanted it to be finalized by this year, a lot of work is pending. Besides, Fenway Sports Group is now investing in this project. With that, let’s have a look at what the future holds for LIV golf in the sport!
Viewership Battle
The PGA Tour has crossed the viewership mark of LIV. Also, the astounding difference is the sight of attention. The tour events had an average of 1.89 million viewers on NBC. In contrast, the CW viewership of LIV was only 200,000. Added to that, the audience engagement kept going low for LIV. Only the Golf Channel viewership of the PGA Tour was 575,000.
LIV backers claim that CW doesn’t release its full record of viewership from non-CW stations in the US. But if the claim is justified, they can just prove it. On the contrary, until August, PGA Tour events were mostly streamed on ESPN.
In a sport, three things matter the most: the players, the venue, and the event. Although LIV Golf has stolen some of the PGA Tour’s star players, it is still the legacy people prefer. They like watching golf played on the Riviera or Pebble Beach. The PGA Tour holds value, which the LIV doesn’t yet. The tour holds history and a legacy. So, people like to watch golf on courses where Rory McIlroy, Tiger Woods, and other big golfers play. With LIV’s ever-changing nature, people couldn’t enjoy the product.
Also, there’s a sense of familiarity with the voice of Jim Nantz at PGA Tour events. People get comforted with that. Thus, loyal fans would always prefer the PGA Tour over LIV any day. Added to these, LIV’s biggest problem is its source of funding, which is entangled with human rights violations and political affairs. LIV still has to do a lot more to get accepted.
Jay Monahan Thinks It’s ‘Product vs Product’
PGA Tour Commissioner Jay Monahan was right because the competition was between the two products of both leagues. By 2023, LIV Golf had completed its one-and-a-half years of existence, and it was noticed that many of its events overlapped with PGA Tour events. Mainly, the broadcasting timings were difficult to adjust.
The tour also has a contracted revenue of $10 billion. A portion arrives from CBS, NBC, ESPN, and others. The second half comes from sponsors like AT&T, FedEx, and others. Moreover, these are permanent revenues. LIV gets very limited revenue. Reports stated that, in 2023, it would be under $100 million. In 2022, revenue was zero but costs were around $784 million. Some teams, like 4 Aces GC and Fireballs GC, have sponsors, but others don’t.
As per reports, PGA Tour has earned about $700 million in annual broadcasting fees, but LIV wasn’t paid properly by CW. LIV’s 2023 TV revenue was less than $3 million. LIV Golf Adelaide, being the show stopper event for LIV Golf, must have received the most money. Now,it seems only Rahm can help LIV grow its audience.
On Which Tour Do the Best Golfers Play?
LIV has two of the reigning major champions: Brooks Koepka (who won the PGA Championship), and Jon Rahm (who won the Masters). This is a huge leverage for the Saudi-backed league. Also, LIV players like Joaquin Niemann won in Australia, and other professionals also went on to bag titles outside of LIV Golf.
There’s another possibility of the PGA our events losing their sponsors. For example, the Honda Classic faced such a fate. It is now called the Cognizant Classic. The Wells Fargo Championship is also going to go through the same.
Apart from this, another concerning factor is the 2024 schedule of LIV, which collides with the PGA Tour. LIV Invitational in Mayakoba has the same timing as the Pebble Beach event. Also, the Houston event is on the same weekend as the Memorial. There are more events with such colliding timings. Thus, the audience are forced to choose what to prioritize.
Although OWGR has yet to provide points to LIV golfers, Data Golf and TUGR consider Brooks Koepka, Dustin Johnson, and others among the top golfers.
A Looming Uncertainty
Jon Rahm was dead against LIV, but now the player thinks that there’s growth with the Saudi-funded league; hence, everything is uncertain at this point. Also, rumors were that Aberg and Hovland were receiving contracts but they denied it. LIV Golf is backed financially by PIF, but there’s still a mystery about how the non-profit organisation is running. If a deal is reached with the PGA Tour, LIV Golf will be secured financially and have a reputation. But PIF can run with or without a deal. The massive amount of financial backing it has can make any sport work.
On the other hand, the PGA Tour can run on its own too. It has investment from SSG. But the question lies: will both the leagues go against each other? Only time will tell.
A Deal Between the Tours
Yasir Al-Rumayyan is engrossed in legitimizing the Saudi-backed league at any cost. If it has to compromise on its format, it would. But that will mean more respect, the PGA Tour’s involvement in team events, and more benefits. The PIF needs the tour for its broadcasting and legacy. On the other hand, the tour needs LIV Golf to eliminate any threat.
If both entities merge, the feud will eventually die down, and both the leagues can work under the same roof. But a final decision is yet to be reached with the consent of the player directors. Thus, it is important to see how the future unfolds with time.
