Friday, January 20, 2023

Your Friday Frisson

Lots to cover, so forgive me if I skip the pleasantries....

All The LIV-Long Day - It's official, those LIVsters have their wacky TV deal with the CW, and James Colgan does a deep dive to figure it out for us.  But first, he needs to allow us to dispense with an obvious bit:

Get your Gossip Girl jokes out of the way now, because crazy as the CW might sound as a broadcast partner, there’s more to it than meets the eye.

Well, there would almost have to be, feeble as it sounds at the headline level.  But, notwithstanding Colgan's exhortations, I'll keep a few Gossip Girls bits in my go bag.

 So, just the fact that they need to spell this out is the tell:

2. LIV will not be paying for airtime

While the exact financial structure of the LIV-CW deal remains a mystery, a source told GOLF.com
that LIV is not paying the CW to broadcast its events. The big question — the one that remains outstanding even after the agreement was announced — is if LIV will make any money from broadcasting on the CW.

In most traditional media-rights deals, the network pays a fee to the league for the right to broadcast its events, but a separate source indicated that the LIV-CW agreement was not structured this way. Another potential avenue toward cash flow would be for the network and the league to share advertising and other revenue generated by league broadcasts.

They're certainly not being paid for their TV rights, which tells us all we need to know about the perceived value of thereof.   Some kind of sharing of the ad revenues seems to underlie this deal, but what would an advertiser pay in the absence of any proof that they can draw eyeballs?

Colgan gets to the implications here:

9. LIV’s long-term remains a question mark

At the beginning of the hunt for a broadcast partner, there was some hope among LIV sympathizers that a long-term, high-paying broadcast deal would materialize, immediately entrenching the league as a fixture of golf for the long-term. Thursday’s announcement certainly doesn’t hurt those prospects, but it didn’t do very much to help them, either.

In fact, if Thursday’s agreement taught us anything, it’s that the league’s existence now and in the near future remains very much tied to the whims of its Saudi financiers.

Short-term as well, but whatev.... Just to make this personal, Phil has assured us that it's all about the Saudi's vision to grow her game.  But there doesn't seem to be a plan for what happens if, strike that, when, the bonecutters decide to stop writing silly checks.

Surprisingly, there's even less here than meets the eye:

3. Streaming will carry early-round broadcasts

Opening-round LIV coverage will not be carried on broadcast television, per Thursday’s announcement. Rather, Friday coverage will be carried exclusively on the CW app. That’s disappointing news for golf fans, particularly those who hoped that LIV’s broadcast deal would expand access to golf coverage rather than limit it.

But, pray tell, did you mean that "round" to be singular, because in a 54-hole event, especially one that concludes on a day other than Sunday, this seems a tad vague.  Will two rounds be on CW, or only the final round?

They could spice this up with some featured-group coverage, but only is they pair DJ and Cam for each event....

Colgan makes the case that the CW is serious, if nly he could say the same about LIV:

4. The CW is very serious about growth

The network is under new owners in 2023, having undergone a late-summer acquisition by Nexstar, a broadcast and local news station behemoth. The goal, per Nexstar chairman Perry Sook, was to diversify the company’s broadcast offerings, bolstering the success of their NewsNation cable channel with a broadcast TV network focused on entertainment.

In the CW, Nexstar found a network that had been used primarily as a proving ground for its former legacy owners, Paramount and WarnerMedia. Though the network had never posted a profit, it touted an unusually young viewership demographic (though those numbers were skewed by the gap between broadcast TV demo reporting and streaming) and an offering in 98 percent of U.S. TV markets.

Sook’s bet is that with the proper strategy, Nexstar can transform the CW into a bonafide broadcast network, building a business that attracts a wide variety of viewers and becomes a destination for TV audiences. LIV represents the CW’s largest push yet toward that effort.

Destination?  Good luck with that, gents, but unless the rest of the Top twenty bolt, tell me gain who you think will tuner in?  Yeah, both names, please.

One outstanding issue that I noticed is the absence of any disclosure as to how LIV overseas events will be handled.  Live with a replay is the Golf Channel model, though no word has been provided here.

Geoff had a Quad post with a few nuggets of interest, first going a different direction than Colgan:

Before you start making Buffy and Vampire Diaries jokes, the network’s average age viewer is a spry 58. Meaning the CW hits the golf audience sweet spot and might not do so terribly. But do keep the age number in mind when Greg Norman touts the young demo they’ll be reaching.

Vampires?  A lot of those LIV signees were the moral equivalent of golf vampires....  But that average viewer age isn't what's been touted my Mr. Norman.  I know you'll need a moment to get over your shock of Sharkie being an unreliable narrator but, to the extent that these folks in their late 50's are inclined to watch golf, don't we think there are other channels they'll instinctively punch in?  But can't you feel the game growing?

Care for a little more Shack-snark?

The upstart league will be shown to willing Americans on Nexstar’s CW, the fifth of five networks that reaches 99% of American households with at least one television. Beyond the numbers, the CW will get LIV in front of two key audiences unable to access YouTube:
  • Residents of The Villages who adore its afternoon programming slate.
  • The second homes of select billionaires who can’t figure out a Roku remote but who might be lured into buying a piece of Captain Cam Smith’s Greezy Mullets.

LIV needed to check this box, which they did in a minimalist fashion.  They'll still fund it all out of pocket, which one assumes they will tire of at some point.

But, once we're done basking in the schadenfreude of this desperation deal, there's peril ahead for the good guys, as per John Huggan:

Forget that Saudi event and the OWGR, this is the next date that should be circled on everyone's calendar.  Huggan has the background here:

In contrast to the on-going, protracted and inevitably fractious legal discord between LIV Golf and the PGA Tour, the parallel dispute between the Saudi-backed circuit and the DP World Tour is expected to play out to a relatively timely conclusion early next month.

It was on June 24, 2022 when executives with the Old World Circuit levied sanctions on all its
members who played in LIV’s maiden event at Centurion Club in London. Three players, Ian Poulter, Adrian Otaegui and Justin Harding, applied for a temporary stay of those initial penalties—a ban from the Genesis Scottish Open and two other PGA Tour co-sanctioned events, the Barbasol Championship and Barracuda Championship, as well as a £100,000 fine. That stay was granted by the International Dispute Resolution Centre by Sports Resolutions on July 5. It’s a decision that has allowed LIV golfers to continue to compete in DP World Tour events ever since, Otaegui even winning the Andalucia Masters at Valderrama in October. Twelve LIV golfers are set to tee it up this week at the Abu Dhabi HSBC Championship.

At that time, the February 2023 “appointment” was announced: a five-day long session that will effectively decide whether LIV golfers can be prohibited from competing on the DP World Tour (as the PGA Tour has done to this point) or can continue to play in DP World Tour events unabated.

Both sides have agreed to a binding verdict after arguing in front of the non-profit, independent U.K. body that allows for parties to settle disputes without going to the high court. A five-person appeal panel chaired by Judge Philip Sycamore will hear the respective cases in London, beginning Feb. 6.

The implication seems to be that Pelley and the Euro Tour have agreed to the efficient and quick adjudication of this issue, which would seem to be contrary to their interests (although I'd suggest that we remain skeptical about our understanding of their perceived interests).  Certainly I would have expe4cted Jay to insist that this be dragged out as long as possible, although I profess complete ignorance as to the European litigation environment (whereas I know just enough about U.S. antitrust law to be dangerous).

Here's one man's opinion on the legal issues:

The main question, says Nolan, facing the panel is whether the DP World Tour has the right to censure players or whether sanctions and discipline amount to an unfair restraint of trade. Nolan believes both sides have reasonable arguments.

“It may be hard for Poulter and the others to prove that the ‘punishment’ inflicted on them is in fact an unfair restraint of trade,” Nolan says. “Because they can still play golf. If they lose, the reality is that they can still go out and play golf on the LIV Tour and make what is clearly a lot of money. They are not being prevented from doing so. Having said that, I do agree that it is also hard to substantiate the DP World Tour’s exercising of what they consider to be their powers in an attempt to ban these players. It will end up becoming clear that they are trying to retain their monopoly.”

Nolan notes another argument LIV players could present is “that is it is better for the world of golf—and for the fans—if we can all watch more events with the best players in them. There will be more choice.”

Sure, as long as you don't allow reality to complicate your argument.  This perpetuates the LIV nonsense that their efforts are all incremental, easier to understand in the context of the U.S. tour.  LIV would have us believe that they can siphon off the top 48 players in the world for fifteen event, and the economics of the U.S. Tour will be unimpaired.   

Of course, while sponsors don't seem to be rocket scientists, they're not quite as stupid as LIV needs them to be.   Tours are in the business of delivering predictable fields to sponsors, and as those fields weaken, sponsors will protect their own interests.  The underlying issue on both continents is whether a voluntary organizations can establish and enforce a series of rules because, if not, those organizations seem imperiled.

This is the one aspect of the argument that most annoys your humble blogger, as LIV's business model inevitably results in the destruction of the PGA Tour as we know it (the Euro Tour is a bit more complicated a sit's already devolved into little more than a feeder tour, which could just as readily feed into LIV).

I think this is just wrong, though:

As to how the panel might ultimately rule, several sources contacted by Golf Digest—including high-ranking DP World Tour officials speaking off the record—believe LIV golfers are likely to prevail.

“In the past, professionals who signed up to play on, for example, the PGA Tour as well as the DP World Tour did so without having any sanctions or restrictions imposed on them,” Nolan says. “The precedent has been set.”

Nolan specifically believes that the Competition Act of 1998, European legislation that guards against monopolies in any business sector, will come into play in the decision-making.

This seems to me completely muddled.  Yes, obviously the Euro Tour had to accommodate itself to its best players moving to Orlando, but the rules governing minimum play and the like have been enforced.  But no one has stopped these guys from resigning their Euro Tour memberships and taking their thirty pieces of silver, they just have to decide where to ply their trade.

Of course, the ultimate verdict will have far-reaching implications beyond the ability of DP World Tour members like Poulter, Lee Westwood, Henrik Stenson and Martin Kaymer to continue competing on what was for long enough their home circuit. If allowed to play in DP World Tour events, can LIV golfers also earn points in order to automatically qualify for the Ryder Cup in 2023?

Unclear, too, is what impact a verdict that favors LIV golfers might have on the strategic alliance between the PGA Tour and the DP World Tour. Some of the more cynical observers have concluded that going to arbitration and fighting a case he might lose is a means to an end for DP World Tour chief executive Keith Pelley. He will, after all, be able to look PGA Tour commissioner Jay Monahan in the eye and truthfully claim he has tried everything to exclude LIV players from his tournaments.

Which is to say that “losing” is not such a bad thing for Pelley. Should the LIV argument be validated, the likes of Dustin Johnson, Brooks Koepka, Phil Mickelson and Open champion Cameron Smith would be free to compete in DP World events. There are those who’ll argue that is not the worst-case scenario for a tour that has, for long enough, failed to attract big names beyond its very biggest events. Many LIV golfers would likely jump at the chance to play in DP World Tour events as it would allow them to once again earn Official World Golf Ranking points on a regular basis, keeping them from seeing their status in the OWGR fall and cutting off a possible way to qualify for the men’s major championships.

Pelley has a gaggle of members who believe that their tour should have embraced the Saudis and taken their money, hence that cryptic warning above about their motives.  That said, while the arguments that the U.S. has contributed in par to the diminishment of the Euro Tour have some merit, the implications of spurning Jay and jumping into bed with the Saudis are hard to predict.  After all, some wise man once called them scary mofos....

Huggan doesn't spend much time on Ryder Cup implications, at least for now:

Then there is the Ryder Cup, an event in which it is hard to conceive any of the European LIV players being given one of captain Luke Donald’s six captains picks, no matter who wins and loses under Sycamore’s ruling next month. In what might be viewed as an indication of things to come, Otaegui was noticeably overlooked for the recent Hero Cup match between Great Britain & Ireland and the Continent of Europe. It was an exclusion clearly not made on merit. At the time the Hero teams were announced, the Spaniard was one of the six automatic qualifiers for the Ryder Cup.

Oh, it's not that hard to imagine, when Jon Rahm and Viktor Hovland are calling for it....

I don't know the relative value, but among the most critical funding sources for the Euro Tour are:

  1. The revenues from Ryder Cup home games, which only happen once every four years, and;
  2. Subsidies for the U.S. Tour.
Now picture a Euro Ryder Cup team for September that includes, say, Sergio.  You can think through other aspects of this, the extent to which Pelley has cooperated with or accepted money from the Saudis, but it seems noon at the OK Corral, no?  A chain is only as strong as its weakest link, and Jay can find his in Wentworth.

The Ladies - I'm pleased to report that the most pressing issue in women's golf has been resolved:

How does one measure leadership?   Carefully, I would suggest, but in the course of barely a couple of months two of the stupidest issues have blown up on the LPGA, and their hand-picked commissioner has gone with the Sgt. Schultz defense, so you girls might want to open an Indeed.com account.  Just sayin'....

The only good news about lockergate is that it's distracted from layers like Lydia skipping the season-opening TOC and being fined $25,000 a head.  The schedule is a mess, and I'm unclear whether their Commish is really up to it.

There have been a series of previews of the LPGA season that I've ignored, so I'll just use this from the Tour Confidential panel to cover my blogging malpractice:

5. The LPGA kicks off its 2023 season this week at the Hilton Grand Vacations Tournament of Champions. What’s the one storyline you are looking forward to unfolding in the next 12 months?

Barath: First and foremost, as one of GOLF’s “gear nuts,” my big thing to watch is going to be some of the top players changing equipment manufacturers, along with whether any of these players are going to get off to slower starts in 2023, or just keep rolling.

Secondly, I am hoping to continue to watch the re-emergence of Lydia Ko after her big comeback year in 2022. The only thing she didn’t accomplish was winning a major, and all signs point to her doing that in 2023.

I can pretty reliably guarantee that equipment deals are not of the slightest import....But thanks for playing.

Melton: I’m ready to see if Nelly Korda can get back to her 2021 world-beating form. She struggled a bit last year with injury and inconsistency, but she capped off the year with a win. If she can stay healthy all season, I expect 2023 to be another banner year.

Hirsh: Would you believe me if I told you Lexi Thompson last won on the LPGA Tour in 2019? Age 27 is awfully young to have a three-year-winless drought. She did win an LET event at the Aramco event in New York, so I’ll be interested to see if she can take that momentum back to the LPGA Tour, or even a major.

No, I wouldn't believe you, because I would have guessed it was even longer ago.  But I agree it'll be interesting to see the manner of her chokeage in 2023.... 

Dethier: How will Lydia Ko fare as World No. 1? This is the third act (at least) of her career, and it’s been fascinating to watch her climb the mountain again. I’m curious what she’ll do at the top.

This should tee up as a great year for the ladies, ensuring that it will be of interest the exact circumstances that lead them to squander it.  They are the tour that can't shoot straight, after all.

The reason I know that equipment deals don't matter is that, first they never matter, but the more important issues can be found here:

If you disrupt a golf tour in the forest, does anyone hear itr?

One of my recurring themes is the hash that the Saudis have made of LIV.  With the possible exception of CNN+, it would be hard to identify an enterprise that has gotten less for more. 

Joel Beall frames this with another track on the Mollie Marcoux Samaan greatest hits album:

It was time to talk about the future, the commissioner wrote. In a letter dated Sept. 12, 2022, Mollie Marcoux Samaan—then 16 months into her new role as head of the LPGA—sent a note to players congratulating them on a successful season, expressing her gratitude for the opportunity to lead their tour and optimism for where it was headed. However, Marcoux Samaan said, the LPGA could only get where it wanted to go by having everyone headed in the same direction. “This is your tour and our success depends on your passion, your actions and your commitment to both your individual success and that of the organization,” Marcoux Samaan wrote.

A former athlete and athletic director at Princeton, Marcoux Samaan said she would be providing information on conversations the LPGA was having with players on the Ladies European Tour and with LET officials, “and hope we can share perspectives on the changing global golf landscape.” The letter did not state the series, organization or monarchy that was spurring this change although the implication was clear: If LPGA players had the same reservations about dealing with the Saudis as their PGA Tour counterparts, this was the time to talk about it.

Marcoux Samaan went on to outline that she would be at six of the remaining eight events on the 2022 LPGA schedule, starting that week in Portland, Ore., for roundtable discussions to share information, thoughts, concerns and ideas. “I know it’s hard to make time during a tournament, but I can’t stress how important it is for us to communicate,” Marcoux Samaan wrote. “Your legacy is more than just how you play on the course or how much money you earn.” The first meeting was scheduled at noon on Wednesday, Sept. 14, in the player dining area at Columbia Edgewater Country Club.

No players showed up.

It seems that her core competency is in getting her players to not appear when expected.....Good luck with that.  After a reference to their issues in the men's game, Beall has this interesting bit:

However, Golf Saudi has had far more success making inroads into the women’s game. In just two years, Golf Saudi has gone from hosting one event on the Ladies European Tour to six, with
one of those events played in the United States. Unlike LIV Golf—which is composed largely of players a notch or two below the game's elite—Golf Saudi’s women’s events have attracted in-their-prime talent. Popular American players such as Lexi Thompson, Danielle Kang, Nelly and Jessica Korda, and Alison Lee have competed in Golf Saudi tournaments. So have international stars such as Lydia Ko, Brooke Henderson, Atthaya Thitikul, Anna Nordqvist, Minjee Lee and Leona Maguire. In fact, Jin Young Ko is the only player in the top seven in the Rolex Women’s Ranking who has not played in a Saudi-backed event. Similar to men's Golf Saudi events, there are extravagant purses to be had with opulent appearance fees for big names.

All six events—the Saudi Ladies International plus five “team series” tournaments played in Bangkok, London, Sotogrande, Spain, New York City and Jeddah—are sponsored by Saudi Aramco, the country’s state-run petroleum company. Aramco’s chairman is Yasir Al-Rumayyan, who is also the governor of the Public Investment Fund, the kingdom’s sovereign wealth fund that controversially backs LIV Golf. Al-Rumayyan is a passionate golfer who believes the game can be a conduit to political and economic influence for the kingdom, and his input carries particular weight in bin Salman’s circle. Greg Norman may be LIV Golf CEO, but Al-Rumayyan and Golf Saudi CEO Majed Al Sorour are the two people who have final say over LIV/Golf Saudi matters.

That last sentence is quite the stunner given that, as we discussed earlier this week, they are arguing exactly the opposite in that LIV antitrust lawsuit so that Al-Rumayyan and Sorour cannot be deposed.  Just figureheads, they tell us....

Of course the Sharkie has to shoot his mouth off:

Publicly, Norman’s voice has been the loudest over the past year. And while some of his statements have been contradictory in nature, the 67-year-old Aussie has been adamant that a LIV women’s league is coming.

“One hundred percent. Drop the mic on that,” Norman told the Palm Beach Post last July. “We have discussed it internally, the opportunity is there. … We’ve actually had one of the most iconic female golfers sitting in this room having a conversation with her. She absolutely loves the whole concept and is behind the whole concept.”

 Like Seinfeld, the LPGA seems to be a show about nothing:

Marcoux Samaan said “nothing specific” caused her to have the series of conversations with the membership she outlined in the Sept. 12 letter to players regarding the LPGA’s future. “I think part of my leadership style and what I think is really important is just to communicate,” she said.

As for what the agenda had been at those fall meetings, Marcoux Samaan said there was none. “Again, there was nothing specific that we were looking for, just to say, like, how are they feeling about the tour?” she said. “How are they feeling about what ideas do they have that we can make? We have to focus on ourselves. I think that's the most important thing for us to do is control the things that we control.”

Hard to understand why the girls didn't show up....

But can these guys ever stay on brand.  Who's their main target?  Yup, the league that got a woodie over Phil and PReed, has it's sights firmly trained on the most over-rated player on the planet:

Should a rival league manifest, sources close to the LPGA point to Thompson as Golf Saudi’s top target. Not only has she already played in their events, Thompson is represented by GSE Worldwide, the agency whose clients make up roughly a quarter of LIV’s membership. The Korda sisters are also seen as potential signees, sources close to the LPGA say, due to their marketing power; they both have competed in the Aramco series.

Lexie is just perfect for them, and I hear that Annika is available....

They would have been so much better served to have started with the ladies, which might have actually addressed the biggest issue the world has with the Saudis, their treatment of the ladies.  Gratitude from the women would actually have played well, and at a fraction of the cost.  But they had their McKinsey report and, really, what could go wrong.

I have to run at this juncture. I expect normal wrappage on Monday, then Tuesday I head West again.  Have a great weekend.

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