GOLF – THE INAUGURAL LIV GOLF INVITATIONAL KICKS OFF THIS WEEK
You’ve probably heard that a new era of professional golf is arriving this week. It’s called LIV Golf and this alternative international league’s mission is to: “modernize and supercharge the game of professional golf through expanded opportunities for both players and fans alike.”
As potential competition to the PGA and European Tours, the coming advent of this new league has caused quite a stir. And, due to the entity funding it, a shroud of controversy swirls around its debut.
But I find the concept of LIV Golf fascinating and I am intrigued as to what the future holds for this new golf league. You might also feel the same way when you see what’s ahead (in about two years’ time) for Greg Norman’s newest entrepreneurial challenge…
BACKGROUND
Some of the innovations LIV Golf will bring to the table include smaller fields (48 players), fewer rounds (54 holes), a shorter season of play, no cuts, shotgun starts, a stroke play format and après golf concerts for the fans. Plus, up for grabs, there will be a LOT of money players can earn, in addition to whatever they were paid to appear in the league.
How it will initially work: In 2022, there will be 8 events in what LIV Golf refers to as its inaugural Invitational Series. The 48 players will be split into 12 four-man teams during each event, selected by a team captain via draft before the event begins. Each team will have a unique name and logo, but players will compete both as individuals and teams for prize money.
The first event is set to begin in London this week and will carry a $25 million purse, the largest in the history of golf. $20 million will be awarded to individuals (where everyone gets a cut) and $5 million will be shared amongst the three top finishing teams.
The seven other events will take place all over the world through October. The last event is the “season-ending Team Championship” with a total prize fund of $50 million where all 12 teams will receive a cut. Each player will receive a 25% cut of team earnings.
Finally, at the end of the series, an Individual Champion will be crowned and a total purse of $30 million will be awarded to the top three individuals of the season – but it will only be available to players who play in a minimum of four events.
All of this is being run by retired Australian PGA player and entrepreneur Greg Norman. And the 67-year-old has one big, extraordinary plan of growth for LIV Golf and even more innovation on the docket for the future.
Specifically, the LIV Golf International Series plans to expand to 10 tournaments in 2023 and 14 in 2024 and 2025 as part of a 2 billion dollar investment, Norman said in a May press release.
But what may be the most exciting part of the future for LIV Golf is what will happen in 2024 when 12 permanent franchises will be established, each with their own distinct identity and each helmed by a top player who will also own a stake in the team. This will undoubtedly offer amazing earning potential for each team (player) and owner.
Essentially, Norman intends to emulate the Indian Premier League’s (IPL) way of doing business. This professional cricket league is the biggest in the world and is the second highest paid sporting league globally. It also was started (in 2008) with an established number of teams which were eventually sold each as a separate franchise.
It’s interesting to note that in 2018 (just 10 years after creation of the league), the IPL was worth US $6 billion dollars. And the top individual teams are currently worth serious money. As of two years ago, the net worth of the top IPL teams was, in US Dollars:
- 1. Mumbai Indians – $113 million;
- 2. Kolkata Knight Riders – $104 million;
- 3. Royal Challengers Bangalore – $98 million;
- 4. Chennai Super Kings – $98 million;
- 5. Sunrisers Hyderabad – $70 million;
- 6. Delhi Capitals – $52 million;
- 7. Kings XI Punjab – $52 million;
- 8. Rajastahn Royals – $43 million.
Norman said in a recent interview with City A.M., a London based business newspaper, “When I look into the future I want to be able to see 12 principal players and three other seeded players sit back and say ‘LIV created generational wealth for my family’… It’s a pretty easy statement to make, but I see the vision and the opportunity for these guys. They are owners of a team. They are responsible for that team. That’s their P and L. The league is giving them that opportunity… So in 10, 15, 20 years’ time, the multiple on the sale of that team – you only have to look at the numbers in the NFL and the way that’s gone. You only have to look at the IPL in cricket.”
THE USPGA AND EURO TOURS SHOULD BE (AND PROB ARE) VERY SCARED RIGHT NOW
Just think of the potential of LIV Golf from the perspective of individual golf team ownership in the future, especially when you compare it to the success of the IPL. This is very meaningful and not being spoken about much in the US press right now. But I feel this is absolutely huge.
The fact that LIV Golf will have individual teams competing all over the world and owned by players, it’s very exciting and it should prove to be fun for fans. Also, let’s keep in mind the IPL has only the best cricketeers in the world playing in their league…
It’s likely the reason the PGA and Euro Tours have focused on the negative aspect of LIV Golf and its “controversial backing”. Namely, that the funding for LIV Golf is coming from the Public Investment Fund of Saudi Arabia (PIF).
Much has been made in the press for months about that country’s “humanitarian crisis” and how “The Golf World is Taking a [Strong] Stand against Saudi Arabia”. Basically, any players who have decided to play for LIV Golf have lost sponsors and seemingly, respect from the general public just for their participation in the new league.
There’s even been the reemergence of the term “sportswashing” in the press to describe how Saudi Arabia is using LIV Golf to somehow cleanse their reputation with the general public through sports.
But just because some players chose to see LIV Golf as a huge opportunity (not just to make large sums of money, but also for potential team ownership in the future as well as an exciting, different way of playing the sport they love) – we shouldn’t hold it against them.
We shouldn’t also look down on players who stray from the PGA and Euro Tours because these leagues were good to them and helped them create their “legacies”. The PGA and Euro Tours made a lot of money on players like Dustin Johnson just like he gained from it.
Look, I’m not going to get into the political controversy surrounding how LIV Golf gets its money, but to insinuate that each player in the new league somehow supports humanitarian violations, that’s just not fair. If LIV Golf had backing from some other less controversial entity, there would be another complaint about the new league swirling around the press right now, guaranteed.
What we are on the brink of with LIV Golf is revolutionary and the powers-that-be know it. It’s going to change professional golf in this country and world. I can see many more players joining the LIV Golf ranks and jumping ship in the future. The excitement of the money to made for sure is real. But the power of players to own their own teams- that is one big intoxicating drug that will be hard to resist.
I personally don’t think LIV Golf will overtake the PGA and Euro Tours anytime in the future. It’s a different concept. There’s room for both. But LIV will definitely take some of the power away from the current monopolies and therein lies the fear.
In the end, we all need to get used to the idea of LIV Golf because as Greg Norman has said, it’s “here to stay”.
HOW/WHEN TO WATCH LIV GOLF
Online – Beginning Thursday, June 9 at 9:00 am EST / 2:00 pm BST, complete, live coverage of LIV Golf’s historic launch at Centurion Club will be globally available direct to consumers on LIVGolf.com, YouTube and Facebook.
Source : LIV Golf
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