LIV GOLF ASSIGNMENT 1

LIV GOLF ASSIGNMENT

Moonsun Song (N01422249)

BPGM 325 Canadian Business Law

Carolyn MacLean

27/11/2022
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PART 1
A Summary of the Lawsuits Between LIV Golf and the PGA Tour

Players from the LIV Golf Invitational Series, sponsored by Saudi Arabia's capital, have

taken legal action against the U.S. Professional Golfers' Association (PGA) Tour's disciplinary

measures, saying they violated the "anti-trust law." (Colgan, 2022)

The PGA Tour made it clear that it would respond strongly. The PGA Tour countered

with disciplinary action by that player who left for the LIV series could not participate in all

competitions organized by the PGA Tour in the future. As a basis for disciplinary action, it put

forward a rule that players from the PGA Tour must obtain prior permission if they participate in

competitions hosted by other organizations. 

The U.S. Department of Justice has investigated whether the regulation violates the anti-

trust law. The Federal Trade Commission (FTC) reviewed whether the rule violated the anti-trust

law in 1994 and concluded that there was no problem.

A Brief History of PGA

The PGA Tour was initially established by the PGA of America but was spun off as a

separate organization for tour players in 1968 under the PGA Tour. The PGA Tour is a platform

leading the world's professional golf and co-hosts more than 130 professional golf tournaments.

The Background to the Development of LIV Golf

On the contrary, the start of LIV golf dates to January 2020, when COVID-19 began to

spread. Two years later, World Golf Group launched the "Premier Golf League" as a new golf

league in New York, the U.S. PGL, a name modeled after the European Football Premier
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League. Its ideas were both novel and unfamiliar. In March, the name of the golf league

sponsored by Saudi PIF was confirmed as "LIV Golf Invitational." LIV stands for the number

'54' in Roman letters. While the existing competition is 72 holes in the fourth round, it also

symbolizes the characteristics of playing with "54" holes in the third round. (Babb, 2022)

Golfers who participate in the PGA

Many golfers are showing conflicting moves against the two leagues. The U.S. Golf.com

claimed that Greg Norman (Australia), who leads Liv Invitational, may have offered $500

million to as much as $1 billion to recruit Tiger Woods (USA). At least, Woods has received

much more in a lump sum than the $120.89 million he has earned on the PGA Tour so far.

However, Woods did not budge and declared his stay. At an official press conference for the

PGA Championship held last month, Woods said he believes in the PGA Tour's legacy and

major tournaments.

Golfers who participate in LIV Golf

On the other hand, Kevin Na (Korea) is a crucial figure in LIV Golf. This is because they

have been together since the launch of Liv Golf and have been welcoming and actively preparing

for new trends, such as withdrawing from the U.S. PGA Tour first. In an interview with Golf

Week, Kevin commented on his contract with LIV. He asked for understanding of what he could

not reveal and said he would only say it was a suitable treatment. The contract period is four

years. There have been no players for over four years now. This is the first time he has received a

down payment in return for his activities on tour. In addition, players receive annual salaries,

participation expenses, and signing bonuses and contracts for a minimum of one year to a
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maximum of four years. There is no cut in the third round. There will also be a team sponsor.

Individual sponsors will be available from next year, and team sponsors from 2024. (DiMeglio,

2022)

The Human Rights Violation Issues Associated with Saudi Arabia

There are also criticisms of LIV as 'sports washing.' It is pointed out that Saudi Arabia,

the sponsor of LIV, is laundering its national image as a large-scale sports event that has invested

a considerable amount of money. In addition, the international community continues to point out

human rights issues in Saudi Arabia. Crown Prince Muhammad bin Salman, who leads the Saudi

sovereign wealth fund, is drawing attention as he is suspected of being behind the murder of a

journalist in 2018. (Melton, 2022)

There is a susceptible reaction in the U.S. because Saudi Arabia is a country that is

pointed out to be behind the 9/11 attacks. As a result, LIV's first competition was broadcast free

of charge on Facebook because it could not secure the right to broadcast T.V. in the United

States.

Bin Salman has been strengthening his power by leading a massive purge since he

became crown prince. In this process, he is also criticized for committing torture. This is

accompanied by efforts to divert attention. In Saudi Arabia, it controls public opinion by

enhancing women's human rights (allowing driving and suffrage) and continues to invest in

various fields externally.

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PART 2
Some oppose LIV Golf because it is a tour supported by Saudi Arabia, which has violated

human rights. However, there were a few problems when the PGA Tour held a competition in

China, which has been criticized worldwide for its crackdown on human rights in the Xinjiang

Uighur Autonomous Region.

Rather than a human rights issue, the PGA Tour has expanded its power by recruiting the

world's best players and secured an exclusive status that no one can overcome. All players'

dreams were to advance to the PGA Tour, and all amateur golfers were satisfied watching the

PGA Tour. It was a perfect monopoly system, with few professional golfers and fans imagining a

world other than the PGA Tour.

The PGA Tour acknowledges that it has contributed significantly to the development of

professional golf. However, if the monopoly system is maintained for a long time, it will

eventually cause harm to the monopoly. It is only natural for competitors to appear in industries

where monopoly regimes have been maintained for more than 50 years.

The advent of LIV golf has opened the era of competition in professional golf. Of course,

there are also accusations that the Liv Tour starts for political reasons and destroys the existing

golf order. However, it is worth cheering just by challenging the monopoly system. The PGA

Tour's reaction to maintaining a monopoly was radical, but it could not stop players from moving

on to better conditions.

Players who have been asked to transfer from LIV Golf under significant contract terms

are still leaning toward staying due to the legitimacy of the PGA Tour and the good faith in the

PGA Tour. Still, considering the time to spend with their families, the charm of LIV Golf is hard

to reject. Top PGA players, including Phil Mickelson, Dustin Johnson, Ian Poulter, and Kevin
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Na, have joined the LIV golf season. On the other hand, some players have announced that they

will leave the PGA. I respect the history of the PGA Tour, but except for some players, it is a

meaningless record. It is up to the player himself to decide whether to live as a bridesmaid or

money for more famous golf stars.

Players who transferred from PGA to LIV will be disciplined, and American companies

will withdraw their advertising and sponsorship contracts. However, in a few years, they will

naturally participate in the world's four major tournaments (Masters, US Open, British Open, and

PGA Championship). The formation of the two major leagues is only a matter of time.
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References:

Colgan, J. (2022). Phil Mickelson is no longer involved with The Match, the producer

says. GOLF. https://golf.com/news/phil-mickelson-no-longer-involved-match/

Babb, K. (2022). Inside the ropes at LIV Golf’s Saudi Arabian homecoming. Washington

Post. https://www.washingtonpost.com/sports/2022/10/28/liv-gold-saudi-arabia-event/

DiMeglio, S. (2022). Longtime member Kevin Na resigns from PGA Tour to pursue other

playing opportunities, including the Saudi Arabia-backed LIV Golf Invitational Series. Golf

Week. https://golfweek.usatoday.com/2022/06/04/kevin-na-resigns-pga-tour-liv-saudi-golf/

Melton, Z. (2022). What is LIV Golf? A simple primer on the controversial new golf

league. GOLF. https://golf.com/news/what-is-liv-golf-primer/