The world of professional golf has witnessed a seismic shift in recent years, marked by the emergence of LIV Golf—a breakaway professional golf league funded by Saudi Arabia’s Public Investment Fund (PIF). Initially called the ‘Premier Golf League’ in 2021, the name was later changed to LIV, 54 in Roman Numerals, signifying the number of holes played at each tournament: a shorter, seemingly easier to understand format of golf. Not only were there less holes than typical professional golf tournaments, but less players in the field and much more prize money up for grabs. This was seen as a threat to the traditional PGA Tour and therefore a rivalry was born. It’s not as simple as playing golf anymore – it’s about money, innovation, and legacy. LIV’s bold moves and the PGA’s response have created a whole new dynamic, reshaping professional golf and how people connect with it. The potential merger adds another layer of excitement, with the chance to bring new opportunities and challenges for both the players and the fans who want to see the sport played in unity once again. 

In 2021, the Saudi Arabian Public Investment Fund (PIF) announced an initial funding of $200 million for LIV Golf. It achieved what it set out to do – disrupt the PGA Tours monopoly over professional golf. In 2022, LIV kicked off its lucrative recruitment of professional golfers; PGA Tour favourites like Phil Mickelson (for $200 million), Bryson DeChambeau (for $125 million), and many others – for sums of money unheard of in the sport. While many players spoke of their preference for its progressive format and LIV’s catchphrase “Golf but Louder” as reasons for splitting away from the PGA, others openly admitted their decisions were primarily financially motivated. A domino effect occurred after several of golf’s biggest stars joined in 2022. By 2023, 37 of the 48 total LIV players had been poached from either the PGA or the DP World Tours. It was estimated that LIV spent over $1 billion to attract these players. 

The question on everyone’s mind was – How Could They Afford This? The answer lies in the deep wallets of its backer – PIF, the largest of Saudi Arabia’s sovereign wealth funds (SWF). A SWF is a state-owned investment fund that manages a country’s reserves generated from export of goods, services and resources. PIF was established in 1971 and currently manages over $900 billion in cash and assets. The PGA, on the other hand, raises its funding through a combination of the sale of media rights (CBS AND NBC Sports), generosity of corporate sponsorships (BMW, Rolex, etc.) and tournament income. This fund-raising module has both pros and cons. However, the main flaw with it is the reliance on multiple external sponsors – leading to a lack of control. A good example of this can be seen in the disparity between prize pools – while tournaments offer over $15 million in prizes, some offer as little as $2 million. LIV, on the other hand, has a fixed pool, with a $20 million individual purse, and a $5 million team purse for each event. Additionally, their “no cut” policy means that every player walks away with something at the end of each week. 

In 2022, the PGA was forced to react and to make a change. Since its inception in 1968, the PGA has often been characterized as a monopoly in the world of golf. The tour kept all the best players to itself, and held large broadcasting deals and the best sponsors, leaving little room for competitors to emerge. This meant that the players had no say at all. With the emergence of LIV, the PGA had to come up with an answer. One of the key changes made was the increase in prize money, particularly for “designated events” that featured higher payouts, sometimes reaching $20 million, to attract top-tier players, and generate more “eyeballs” for the events. The PGA also expanded its Player Impact Program (PIP), offering a $100 million prize pool to reward players based on their off-course visibility, such as social media influence to attract a younger demographic to the game. By emphasizing social media influence and other forms of visibility, the PGA aims to connect with the 18-34 age demographic, which, as of 2024, is the largest age group of golfers. The PGA even went one step further and revamped their signature ‘playoffs’ event, raising the total prize pool, providing larger payouts to top finishers, and making the game easier to digest – all to raise hype around the game and themselves. This was shown to work out for the tour during the “Creator Classic” amidst the recent playoffs, where the best golfing content creators on social media, like YouTube and Instagram, would compete in a short, easy-to-digest, round of golf, which captured the attention of many viewers who typically don’t watch golf, benefitting not only the sport but all the corporations involved. 

Undoubtedly LIV has had a positive impact on the game of Golf and its established rival – the PGA. It has attracted top talent, introduced innovative formats, and, expanded its  global reach. Overall, this presents significant business opportunities for golf globally, creating numerous jobs across various sectors of the sport. In June 2023, a proposed merger between LIV and the PGA was announced, widely seen as an effort to unite a commercially divided sport. While details of the merger remain limited, it promises numerous benefits. By merging the strengths of both distinct tours, this combination could allow for a surge. With the financial backing of Saudi Arabia’s PIF, there is potential for substantial growth in lower-tier tours, such as the Korn Ferry Tour and Challenge Tour, through increased provision of subsidies. This would better support emerging talent and encourage new golfers to pursue opportunities on the world stage, ultimately strengthening the sport’s foundation and ensuring its long-term stability.