Saudi Arabia’s Plan to Conquer Global Golf

Wendover Productions

LIV Golf Launch and Initial Response

October 2021: LIV Golf Investments announced with Saudi Sovereign Wealth Fund backing
- $200 million commitment for 10 new professional golf tournaments
- Greg Norman appointed as CEO ("The Shark," former world #1)
- Vague details on players, locations, tournament format
PGA Tour vulnerability due to pay structure
- Only pays for winning, no guaranteed salaries
- Creates financial instability for middle/back-of-pack players
- Players pay own travel, coaching, accommodations
- Risk of finishing outside prize money
PGA Tour Commissioner Jay Monahan's counter-response
- Increased prize money for upcoming season
- Enhanced player IMPACT program compensation
- New bonus fund for players appearing in 15+ PGA events
- Threatened lifetime bans for defectors to LIV

Phil Mickelson's criticism of PGA Tour while playing Saudi International
- Called PGA Tour's greed "obnoxious proportions"
- Criticized hoarding of players' digital media rights worth millions
Alan Shipnuck's bombshell article during Genesis Open
- Revealed Mickelson working with Saudi League
- Had recruited 3 other top players to flip
- Mickelson called league "sportswashing"
- Called Saudis "scary"
- Admitted move was purely about money and leverage
Initial player reactions
- Most top players aligned with PGA Tour
- Some stayed coy, mentioning NDAs
- Saudi project appeared dead initially
- Mickelson stepped away from golf temporarily

WWE 2022 pay-per-view schedule analysis
- 17 events total, only 3 outside US
- 2 international events in Jeddah and Riyadh
Financial impact on WWE
- $50 million per Saudi event since 2018
- $100 million annually from 2 events
- Represents close to 10% of annual revenue for world's 37th most valuable entertainment company
2019 Crown Jewel incident
- Event failed to air live in Saudi Arabia
- Rumors of $60 million late payment for prior event
- WWE allegedly cut feed to Saudi broadcaster
- 200 WWE personnel faced flight delays after event
- Anonymous wrestler testimony: armed guards blocked plane doors
- Crew member said "someone doesn't want us to leave"
- Senior talent relations director confirmed payment dispute and "very mad" Crown Prince
- Described as potential hostage incident
WWE lawsuit settlement
- Accused of misrepresenting Saudi broadcast rights to investors
- Settled for $39 million (not admission of guilt)
- WWE denied hostage incident, claimed mechanical issues

2022 Saudi Arabian Grand Prix disrupted by Houthi rebel attack
- Massive smoke plume visible during Friday practice
- Attack on oil depot in Jeddah outskirts
- Part of Yemen proxy war (Saudi vs Iran-backed Houthis)
Driver safety concerns
- Initial consensus to cancel race
- 4.5-hour driver meeting stretching into early morning
- Saudi officials discussed "consequences" of race not proceeding
- Drivers eventually relented, race proceeded as planned
Yemen conflict context
- UN describes as "world's worst humanitarian crisis"
- Saudi air/sea blockade contributing to civilian deaths
- Human Rights Watch documents pattern of strikes on civilian areas
- "Double tapping" airstrikes on rescue workers

Comparative repressiveness vs other wealthy Middle Eastern nations
- Qatar and UAE have similar restrictions but less enforcement
- Saudi Arabia regularly enforces anti-homosexuality laws with prison, lashes, execution
- Strict guardianship system for women
- Women need male guardian approval for marriage
- Legal requirement for wives to be "obedient" including sexual compliance
Legal system brutality
- Barely codified laws, judges use ambiguous Sharia interpretations
- Death sentences for unprovable crimes
- Institutionalized jailing/killing of regime challengers
Freedom House ranking: least free wealthy nation in world

June 6, 2023: Shock merger announcement
- No PGA players knew in advance
- Leagues would stop poaching players
- Dropped all lawsuits
- Saudi Public Investment Fund becomes exclusive investor
Commissioner Monahan's justification
- Previously railed against Saudi atrocities and 9/11 connections
- Called hypocrite by 9/11 families and players who rejected Saudi money
- Privately told employees couldn't compete with "foreign government with unlimited money"
- Negotiations had started months earlier
Financial reality forcing merger
- LIV had no TV deal or profitability path
- PGA Tour spent $50 million on legal fees
- $100 million on bigger purses and bonuses
- PGA Tour reserves running dry by early 2022

Not primarily about immediate profitability or short-term image
- Spending far more than could return on sports investments
- International attention often highlights repressiveness
Post-oil economic transition strategy
- Attempting to become like Dubai: diversified, modern, service-based economy
- End era of isolation, become integrated internationally
- Practical necessity as oil prosperity undergirds monarchy's legitimacy
Limited genuine reform
- Some visible repressive policies ended
- Arrest, torture, execution of dissidents continues
- No democratic changes
"Fake it until you make it" approach
- Sports embed Saudi Arabia with wealthy world
- Force integration during transition out of insularity
- Long-game strategy rather than immediate rebranding

Sports executives' gamble on engagement theory
- Argue Western culture exposure will propagate human rights principles
- Risk being on wrong side of history
- Executive bonuses potentially based on helping brand repressive regime
Best-case scenario for Saudi rulers
- Continue autocratic rule while being perceived as normal by West
- Maintain power concentration while appearing legitimate internationally

Try for free