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Saudi Arabia’s Plan to Conquer Global Golf

Wendover Productions・2 minutes read

The Gulf civil war in golf began with Live Golf Investments committing $200 million to establish new tournaments, leading to top players defecting from the PGA Tour to the Saudi-backed league. The merger between the PGA Tour and Live Golf, backed by Saudi Arabia's wealth, highlights the financial constraints faced by the PGA Tour and Saudi Arabia's larger strategy to reorient towards a post-oil era, despite ethical concerns over human rights violations.

Insights

  • Live Golf Investments, backed by the Saudi Sovereign Wealth Fund, announced a $200 million commitment to establish new golf tournaments, attracting top players like Dustin Johnson, Dechambeau, Koepka, and Smith, signaling a potential shift in the golfing landscape.
  • The PGA Tour's response to Live's announcement, increasing prize money and player incentives, along with the unexpected merger with Saudi-backed Liv, showcases the complex interplay between financial constraints, human rights concerns, and the broader strategy of Saudi Arabia to transition to a post-oil era through sports investments, raising ethical dilemmas within the global sports community.

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Recent questions

  • What sparked the Gulf civil war in October 2021?

    Press release by Live Golf Investments

  • Who was announced as the CEO of Live Golf Investments?

    Greg Norman

  • What led to criticism of the PGA Tour's pay structure?

    Unique reward system for winners only

  • Why did Phil Mickelson hint at leaving the PGA Tour?

    Criticism of PGA Tour's greed

  • What motivated the PGA Tour to merge with Live Golf Investments?

    Financial constraints and legal fees

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Summary

00:00

Gulf Civil War: Golf, Money, Defections, Controversy

  • Gulf civil war began with a press release in late October 2021 by Live Golf Investments, backed by the Saudi Sovereign Wealth Fund, committing $200 million to establish 10 new professional golf tournaments.
  • Live Golf Investments announced Greg Norman, former world number one golfer, as its new CEO, but details on players, locations, and tournament formats were vague.
  • The PGA Tour's unique pay structure only rewards winning, leaving mid-tier golfers financially strained despite their talent.
  • PGA Tour's commissioner, Jay Monahan, responded to Live's announcement by increasing prize money, player incentives, and warning of bans for defectors.
  • Phil Mickelson criticized the PGA Tour's greed, hinting at a potential move to the new Saudi-backed league.
  • Live Golf Invitational was announced with 8 tournaments, $255 million prize money, and a format with less stress and more money than the PGA Tour.
  • Dustin Johnson was the first big name to defect from the PGA Tour to Live, followed by other top players like Dechambeau, Koepka, and Smith.
  • WWE's pay-per-view events in Saudi Arabia generate significant revenue, with each event reportedly earning the company around $50 million.
  • WWE faced controversy during the 2019 Crown Jewel event in Saudi Arabia, with rumors of a payment dispute leading to a delay in performers leaving the country.
  • Saudi Arabia's repressive policies, including strict guardianship laws for women and severe punishments for homosexuality, set it apart even from other repressive Middle Eastern nations like Qatar and the UAE.

15:04

Saudi Arabia's Golf Strategy Raises Ethical Concerns

  • Saudi Arabia operates without codified laws, relying on ambiguous interpretations of Sharia law, leading to severe sentences, including death, for unprovable crimes challenging the ruling family.
  • Despite being wealthy, Saudi Arabia is the least free nation globally, contrasting with other wealthy nations like the UAE or UK, known for entertainment like golf and WWE.
  • The PGA Tour, aware of Saudi Arabia's human rights abuses, unexpectedly merged with Liv, backed by the Saudi Public Investment Fund, despite public backlash.
  • The merger was driven by financial constraints on the PGA Tour due to legal fees and bonuses, with Saudi Arabia's wealth offering a solution.
  • Saudi Arabia's foray into professional sports, like golf, is not for immediate profit but part of a larger reorientation strategy to transition to a post-oil era and integrate with the global economy.
  • Sports engagement is seen as a way for Saudi Arabia to transition from isolation, potentially improving its image, but it raises ethical questions about supporting a regime with ongoing human rights violations.
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