Wednesday, January 25, 2023

Midweek Musings

Back at Unplayable Lies Western HQ where the snowfall has dwindled to a mere trickle, at least for the moment.  There is some cause for optimism in the forecast, but that's typically as reliable as election exit polls...

Shall we check in with the LIVsters and see what those crazy kids are up to?

Houston, We Have a Schedule - I think we can agree that it's completely normal to not release your schedule until an hour-and-a-half before your opening day.  We do have one take on that maneuvering to share, although Occam's Razor would point towards incompetence and lack of demand, in either order.

You'll want to get these dates in your Dayminder soonest:

Feb. 24-26: El Camaleon Golf Club, Mexico

March 17-19: The Gallery Golf Club, Tucson, Arizona

March 31-April 2: Orange County National, Orlando, Florida

April 21-23: The Grange Golf Club, Australia

April 28-30: Sentosa Golf Club, Singapore

May 12-14: Cedar Ridge Country Club, Broken Arrow, Oklahoma

May 26-28: Trump National Golf Club, Washington, D.C.

June 30-July 2: Real Club Valderrama, Spain

July 7-9: Centurion Club, England

Aug. 4-6: Greenbrier, White Sulphur Springs, West Virginia

Aug. 11-13: Trump National Golf Club, Bedminster, New Jersey

Sept. 22-24: Rich Harvest Farms, Sugar Grove, Illinois

Oct. 20-22: Trump National Doral, Miami, Florida

Nov. 3-5: Royal Greens Golf & Country Club, Jeddah, Saudi Arabia

In terms of wins, they're a little thin on the ground.  They did actually announce a schedule, though that likely falls under the banner of the soft bigotry of low expectations.   Straining further to identify positives, they did grab a few notable venues from the Old World powers, including Valderrama and Mayakoba, though the one that rankles this purist is the Greenbrier and its Macdonald gem.  But the Tour treated that event with its usual passive-aggressive indifference, so hard to blame them....

Other curiosities is that they abandoned their Boston event, and the team competition will come to its dramatic conclusion in...wait for it, Jeddah.  Which would seem to ensure an audience measure in the teens.....

Though does the schedule seem back-loaded to you?  They had previously announced their intention to conduct their events in the February - September window, apparently even a bone saw being no match for the NFL juggernaut.  Seems to this observer that they were forced to push back at least a month-and-a-half to secure dates, not exactly a show of raw strength.  A better blogger than I would take the time to see which each of those events competes with on the PGA Tour, but I'm far too lazy for that, at least right now.

Bob Harig fills in some background on the delay in announcing the full schedule, as well as that curious coda:

Reasons for the delay are due in some part to the relatively volatile nature of securing venues, with limited sites available that can host a professional golf tournament.

But it is also clear that there has been some meddling by LIV Golf’s Saudi supporters, who seemingly stayed out of the day-to-day workings last year as an eight-tournament schedule was pulled off with very little lead time.

The reason likely has something to do with LIV’s Saudi bosses wanting an event to be played in Saudi—something which was not in the plans late last year as LIV Golf was wrapping up its invitational series.

When LIV Golf was playing its seventh event in Jeddah, there was no indication the league would play any of its events there this year. The feeling was that the players were already committed to the Saudi International, and that another event there was asking too much.

Hmmm, so the guys paying the piper will call the tune?  That seems highly irregular, and I remember Phil bloviating to the effect that the LIV operating agreement had been written to give the players control.  It's almost as if the Saudis are doing this for reasons unrelated to golf or economics....who knew?

When LIV Golf got to Miami for its season-ending team event in October, several players suggested that there were rumblings of a schedule change that would see them go back to Jeddah. The first such suggestion was that the first event of the schedule would be there, the week following the Saudi International. The players did not seem to be on board. Nor were they in favor of another idea that would have seen the opener played the week of Mayakoba—three weeks after the Saudi International on the same Royal Greens Country Club, pushing back an already-scheduled Mexico event.

While the Saudis pay the bills and it's certainly within their rights to want to play an event in their home country, the idea is low on smarts for various reasons, perhaps the biggest of which is events staged at the venue outside of Jeddah simply to not attract a large gathering.

LIV Golf’s motto is "Golf, But Louder" and to launch a new season amid such a subdued atmosphere would have been foolish.

Is it any less foolish to finish your season there?  Especially since those $1 billion valuations for each team would seem inconsistent with it wrapping to the sound of crickets.

But, perhaps the bigger issue is its effect on that antitrust litigation, in which we've seen the Saudis ducking depositions arguing that the Saudis are merely passive investors.  Harig does at least touch on that:

And if you want to play into the notion put forth by the PGA Tour put in one of its court filings—that the Public Investment Fund (PIF) that underwrites LIV Golf is calling the shots—this certainly gives legitimacy to those claims.

Ya think?  

Titanic Deck Chair Update - A bit of a C-Suite shuffle, wherein I'll just note that there's a long tradition of kicking folks upstairs as a means of solving an issue without an admission of failure:

Majed Al Sorour, LIV Golf managing director and Golf Saudi CEO, is no longer in an administrative role with the breakaway circuit, Golf Digest has confirmed. 

Al Sorour, who serves as an adviser to Saudi Arabia’s Public Investment Fund and is the director
of the Premier League’s Newcastle United soccer club, was considered the second-in-command at the Saudi-backed circuit, behind only Aramco chairman and PIF governor Yasir Al-Rumayyan. Greg Norman may have been the public-facing leader, but sources familiar with LIV tell Golf Digest Al-Rumayyan and Al Sorour were the two people who had final say over LIV Golf/Golf Saudi matters.

Now Norman will report to Al-Rumayyan alone, as Al Sorour moves to a position on the LIV board.

“Majed Al Sorour has been and will continue to be an invaluable part of LIV Golf, as he continues in his Board of Directors capacity,” a LIV Golf spokesperson told Golf Digest. “Majed’s role was pivotal in supporting the launch of LIV Golf. As the business transitions into its first full season with a new broadcast partnership in place, the time is right for the managing director role to transition and for Majed to focus efforts and attention on other interests.

The most curious word in there would seem to be that "alone:, no?  Didn't Jamal Kashoggi go into that Saudi consulate alone as well?

Of course, there's been no shortage of turnover:

Al Sorour’s departure continues an offseason of upheaval among LIV Golf management. In December, it was revealed Atul Khosla, chief operating officer of LIV, had left. Khosla was considered one of the voices of reason inside LIV, sources tell Golf Digest. Against criticism that LIV Golf was nothing more than a publicity stunt to improve the reputation of Saudi Arabia—which funds the golf entity through the PIF—Khosla insisted the organization’s goals were business related. Matt Goodman, president of LIV franchises, also left LIV following its first year.

Sources close to LIV Golf tell Golf Digest that Al Sorour’s managing director position will not be filled. In turn, his absence will allow Norman to play a bigger role at LIV. This comes despite calls from Tiger Woods and Rory McIlroy for the two-time major champion to step down in order for a detente between LIV and the golf world. However, multiple sources say a number of LIV Golf players remain in Norman’s corner. They appreciate that he is fighting for their interests, particularly in trying to secure Official World Golf Ranking status, along with providing them cover from backlash for joining an entity with numerous human-rights issues attached.

Were Tiger and Rory playing 3D chess?  Did they intentionally call for Norman's scalp in order to induce the Saudis to expand the bufoon's role?   Or, with the rats doing what rats do, are there just limited managerial options?

And seemingly no reinforcements to be found, so I guess that Greggy will be cleaning shoes in the locker room, as well as sucking up to his paymasters?

I Saw It On TV - My new favorite LIV flak is Will Staeger, who is LIV's Chief Media Officer, my infatuation resulting form the obvious fact that he, like his boss, will say just about anything.

On the one hand, it could be argued that they don't know that we have the Internet, and can throw their nonsense back in their faces down the road.  More likely is that they cash the bonecutters' large checks, and will be on to their next gig before the you-know-what hits the fan.  Mr. Staeger has gotten a media deal done, and wants us to know how great it's going to be at some indeterminate time in the future.  The here and now?  

Amusingly, James Colgan frames the piece with the fact that these desperate negotiations took place through the holiday season and, boo-friggin'-hoo, and it was so inconvenient.  Left unsaid is the rather obvious fact that there was zero interest from any network in actually paying LIV for their content, thereby necessitating a complicated negotiation to find any network willing to even carry the product without risk.  

Shall we have our usual kind of fun with Mr. Staeger?

According to Staeger, LIV received bids from “multiple networks” at its offer deadline in the fall of 2022, though he would not say which networks were among the potential suitors or how many networks were in the running. (Over the summer, LIV CEO Greg Norman told ESPN1000 Chicago the league was in “active negotiations” with “four different networks.”)

Four that were willing to pay LIV a combined total of....checking notes, zero.  Hey, why not ten networks, as we can see your noses growing...  Back here on Planet Earth, that the CW was the best offer is a rather public humiliation but, were denial an Olympic sport, these guys would be on the podium.

There's an old saying in politics that, if you're explaining, you're losing.  There's a further corollary to the extent that you're hiding, you've probably already lost:

For a league unafraid to gas the news cycle with fodder of an $800 million Tiger Woods offer, LIV is noticeably coy about its TV agreement. The league will not divulge specifics about the deal’s financials or term, offering only that the agreement will run “multiple years,” and that LIV will not be paying the network for airtime. (The Sports Business Journal‘s John Ourand reported Tuesday that the agreement is for two years, with a one-year option based on viewership.)

“First of all, for the record, it’s not a time buy,” Staeger said. “We’ve said from the beginning that we’re not interested in doing a time buy with anybody. We don’t feel we have to.”

Staeger’s description leaves plenty of room for interpretation about the agreement itself, particularly regarding which parts of it will result in financial gain for the upstart league. No one from the league has publicly stated if LIV will receive a “rights fee,” or annual lump-sum payment from the network in exchange for the “right” to broadcast LIV’s events. Such agreements are common practice in most major sports TV deals and result in the vast majority of TV revenue for leagues. Sources told GOLF.com last week that LIV would not immediately receive a rights fee from the CW. In lieu of a rights fee, LIV’s best avenue to financial gain from the CW agreement could come in the form of a revenue-share between the two sides. Traditionally, such agreements include splitting a share of advertising dollars generated as a result of the property’s broadcasts.

Do you remember when Norman went to the Ryder Cup and tried to convince us that LIV's team competition would be just like that?  This is their favorite rhetorical trick, in which they compare themselves to other sports properties to which they are not remotely akin:

“The model I’ve liked to talk about is how NBC Sports handled the English Premier League in the U.S., and how ESPN and Formula One combined with Netflix and ‘Drive to Survive,'” Staeger said. “Those deals really grew the property’s popularity in the U.S.”

Oh right, you guys are just like F!....except for the pesky detail that people actually watch F1.  And the CW is just like ESPN.... And Netflix, well they're in bed with that other tour.  But, except for those meager qualifications, I get that it's totally the same.

And let's not forget this pesky detail:

If a revenue-share is the path forward for LIV, at least in the short-term, a separate issue arises. Per the CW’s current agreement with the audience-tracking service Nielsen, weekend viewership numbers are not tracked on the network, meaning LIV will be incapable of showing advertisers the value of their paid time-slots without a separate agreement. Staeger admitted it was early yet to know how the two parties would breach the data gap, but vowed there would be viewership metrics available for LIV in 2023.

“It’s critical to our plans,” he said.

Why isn't the CW tracking their weekend viewership?  I'm guessing it's not because they want to show advertisers how vast their audience is....

But whatever he might be smoking, I do hope he's brought enough to share:

But not every benefit to a television deal is financial. As Staeger points out, LIV’s agreement with the CW — a network that reaches more than 120 million households in the U.S. — has the opportunity to broaden the league’s reach and its viewing audience. Its new owners, Nexstar, have big plans to transform the network into an entertainment powerhouse (utilizing sports as a key part of that platform), following the outline first laid by FOX some two decades ago. The nature of the agreement is such that each party is deeply invested in the other’s success.

“There’s a strong promotional commitment the CW is going to put into place. Virtually everybody within the organization, from executive ranks on down, is enthusiastic about our products, and they expressed that really early on. They share our vision,” Staeger said. “Being their first sport, I think that enhances the situation. In a way, we’re being treated like the NFL for them. So I think that will help the ratings, and that’ll help the growth of our viewership.”

Oh yeah, it's just like the NFL...... Wait, there's more:

There are other levers to help boost ratings and, by extension, revenues for all parties involved. One avenue is through additional rights deals. LIV’s agreement with the CW encompasses its U.S.-based programming, but the league still has the freedom to shop the remainder of its broadcast rights to international partners. Staeger hinted that more news on those agreements could be coming very soon.

“We’re in negotiations in every territory in the world right now,” he said. “We were just wanting to announce this one first.”

Yes, you're always in negotiations, which is great as long as those negotiations are more successful than the ones that led to the CW deal.  But I'm quite sure they'll dominate the Saudi TV market...

It just keeps getting funnier:

Another avenue to growth is through “original programming” — an opportunity Staeger noted specifically as part of LIV’s efforts bolster support with golf audiences. That could mean the creation of a documentary-style TV show in the ilk of ‘Full Swing’, the PGA Tour-focused docuseries soon to release on Netflix. Such programming could live on the CW, Staeger said, but could also be shopped to other networks and/or streaming properties.

“Think ‘Drive to Survive’ or ‘The Last Dance,'” he said. “Programming is the sword that really ties the viewers and the space to the personalities of your stars and your league. I look at the NBA and the NFL, and we plan on following in their footsteps.”

Sure, PReed is just like Michael Jordan..... But wait, the singularly funniest bit comes here, so consider this your spit-take warning:

“We’re fully entrenched,” LIV CEO Greg Norman told Fox News. “We know where we’re going. We know what we’re doing.”

Before his first free weekend in months, Will Staeger’s vision was even more encouraging.

“We’re a rocket ship,” he said. “We’re about to take off.”

He’s right about one thing: the countdown has begun.

 Sure, i think that's spot on, it's just that they're this rocket ship.

I have no idea who Tom D'Angelo is, but writing in the Palm Beach Post he seems to be shilling for LIV, though one wonders why:

So, first we lower the bar:

LIV Golf’s recently announced television deal with the CW Network was not ideal, but was the next step in making them “legitimate,” according to an expert in sports management.

Lisa Neirotti, a professor of sports management at George Washington University, specializes in sports entrepreneurship and the importance of media rights for startup leagues. Neirotti acknowledges LIV’s partnership with CW – which is believed to be a revenue-sharing deal without a rights fee being paid – is not a “great deal,” but added oftentimes it’s necessary to give away a product to grow that product.

“We can criticize it all we want but they have been able to get themselves on a network,” said Neirotti, who has taught at George Washington for 32 years and studied LIV Golf closely the last year. “And that’s a first step for any growing sports property is to be able to get themselves on a network.

OK, but I had just been reliably informed that LIV is a rocket ship, so you'd think guys would be opening their checkbooks, no?

But then it turns comedic:

“Now it’s up to that property to bring the eyeballs to the network. The only way they are going to be able to do that is if they are able to really help promote it during different shows. So people who watch CW for news, people who watch CW for other shows, there needs to be promo spots saying tune in on Saturday at 1.”

Well, sure.  And that 16-year old girl that's tuned in for Buffy is LIV's target demo....

Remember above where Staeger was touting the personal investment of CW's entire management team.  This seems closer to objective reality:

“CW doesn’t have anything to lose and LIV has something to gain.”

To me, the key tell can be found on Friday, when CW refused to give up their Gilmore Girls reruns for live golf.  Think about that for a while, and realize the BS that Staeger threw at us.  They are all in with their weekends, where they weren't drawing enough of an audience to track.  But Friday afternoon?   

I'll excerpt the lengthy cods, but you might just notice one missing ingredient:

“You have to grab people’s attention,” Neirotti said. “How are they going to get people to come watch the show now that you’re on? And they weren’t successful in trying to get people to go to YouTube.”

And attracting sponsorship is critical and if LIV is responsible for securing some or the majority of advertisers as has been reported, it can now lure companies with not only signage and tickets and hospitality, but also offering commercial time.

“I think as they become mainstay or legitimate then more people are going to be looking at is as an advertising medium,” Neirotti said.

“It’s not a huge win for LIV in terms of financial windfall,” she added. “It’s the next step in making them legitimate. They are now on a network. The next thing now is to get people to tune in but in order to do that they have to promote it though Nexstar’s consortium.”

I hate to be the one to rain on their parade, but missing from Ms. Nierotti's analysis is one minor step, developing a product that might actually attract viewers.  Just sayin'.

I've got more teed up, but will save it for tomorrow and bid you adieu here.

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