The PGA Tour and LIV Golf sure have a funny way of showing unity.
Six months ago, when the tour and Saudi Arabia’s Public Investment Fund, which finances LIV Golf, reached their “framework” agreement, it was written that the sides would not poach each other’s players. But that language was removed on recommendation from the Justice Department because of antitrust concerns. Still, the PGA Tour was not concerned, saying it was unnecessary because “all parties are negotiating in good faith.”
At the very least, it appears LIV now holds all the leverage. At worst for the PGA is Justin Rose’s fear. He said Thursday that if this starts a trickle-down effect, “That’s not good.”
The signing of the Spanish star comes weeks before the Dec. 31 deadline to finalize the PGA/LIV agreement. With that deadline already being pushed back, according to several recent reports, this news now has everyone wondering if it will fall apart and return professional golf to a state of chaos.
Rahm’s deal reportedly is for more than $300 million over three years with bonuses pushing that number to more than $550 million.
The PGA Tour’s entire purse for the 2023 season was $460 million.
The PIF reportedly was investing $1 billion to $2 billion into the PGA Tour as part of the agreement and already has put north of $2 billion to launch LIV with little or no return on that investment.
Even with assets of more than $700 billion, why would PIF drop more than a half billion more on one player if this deal with the PGA Tour is going through?
This is about leverage for LIV, regardless of whether a deal is finalized. If a deal is reached, LIV is prepared to operate as it has through its first two seasons even if it falls under the same umbrella as the PGA Tour. If a deal is not reached, the league has done what most originally believed, double down on its fight with the PGA Tour.
For LIV, this is the biggest signing since the original list, bigger than Brooks Koepka or Cameron Smith, mostly because of the timing.
LIV’s credibility continued to fall, even with a first-year haul of PGA Tour players that exceeded most expectations. Sponsors have been slow to come aboard. Its television deal was laughable. The league has had a difficult time getting people to buy into its unique format, including the team concept. And the Official World Golf Ranking board dealt LIV a big blow by rejecting its application for its golfers to receive points.
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