On June 7, the world of professional golf was hit by a major earthquake, with some people crying, others laughing, and more people cursing.
According to The Athletic, the PGA, LIV and DP World Tour are merging to form new companies, while the Saudi Public Investment Fund (PIF) will invest in the new entity. The Financial Times reported that the injection could reach a staggering $3 billion, and PIF has control over the future of the new company. The newspaper also revealed that PIF president Yasir Al-Rumayyan will serve as chairman of the new company, while PGA Tour president Jay Monahan will serve as CEO.
According to multiple media sources, more details of the merger of the three companies have not yet been released, the calendars and TV broadcasts of their respective matches are temporarily as usual, and the merger may also face transaction review by US regulators.
Yasser at Newcastle's home stadium.
Since the second half of 2021, Yasser's name has frequently intersected with the world of sports. He and PIF are Saudi Arabia's upheavals in the sports world, and in less than two years, the owner of Newcastle United in the Premier League, has built a sports asset kingdom with money.
Looking back at Yasser's path to success, it can be said that "the times make heroes". After graduating from university, Yasser made a career in business and finance, working as an executive in several banks and investment firms. The key to Yasser's success was that he seized three precious opportunities given by the government.
The first opportunity was the insight of Saudi Crown Prince Mohammed bin Salman. In 2016, Salman launched the Vision 2030 Plan, which he followed the example of sovereign wealth funds in Qatar and Abu Dhabi to set up PIF, and began acquiring assets around the world, using money to bring cultural soft power to Saudi Arabia. On this occasion, Yasir entered Salman's vision with outstanding business insight and leadership, and was appointed CEO of PIF, officially becoming the crown prince's concubine.
The second chance is Saudi Arabia's "anti-corruption campaign," in November 2017, the Saudi government imprisoned hundreds of influential businessmen suspected of corruption at the Ritz-Carlton, Riyadh. The New York Times revealed that the detainees were beaten, their property confiscated, and the money was successfully transferred to the PIF after a series of operations by Yasser. In 2014, PIF had $84 billion in assets, and by early 2019, a year after the detentions, PIF was sitting on $320 billion and its workforce had grown from fewer than 50 to 500.
The third chance came in November 2018, when Saudi journalist Jamal Khashoggi, who had criticized Salman in the Washington Post, was assassinated at the Saudi Embassy in Turkey, and Salman was subjected to a large number of sanctions from the international community in a short period of time, and negative voices flooded in. In order to restore his personal and Saudi reputation, Yasser, who was assessed by the New York Times as "showing no signs of involvement", is Salman's best grasp, and he tries to use the power of sport to change Saudi Arabia's international image. Saudi expert Christopher Davidson commented: "In Newcastle and LIV Golf, PIF saw an opportunity to enhance Saudi soft power and a blank advertising canvas to promote Saudi Arabia. ”
Yasser was a smart guy and in the days of the acquisition of Newcastle he was hardly involved in the management of the team, only expressing his opinion on major options. He told Newcastle fans that it would take "patience and persistence" to achieve their goals, and he himself did.
In seven years, Yasser led a full-fledged PIF that now has more than 2,000 employees and manages at least $600 billion in assets, and he himself has become an essential figure around Salman, frequently shining in the spotlight. Through PIF, Yasser also manages stakes in giant companies such as Disney, Tesla, Boeing and Uber.
Yasir's success is also fate. If this transaction is successful, it proves that money is king in the world of sports. In the early days when Saudi Arabia spent billions of dollars to build its sports business empire, no one believed they could achieve the success they have today.
Starting with a multibillion-dollar LIV, £305 million to buy Premier League side Newcastle, $200 million to sponsor the African Premier League, buying a large stake in Saudi football giants, and offering world-renowned stars to help the Saudi Football League. Cristiano Ronaldo and Benzema have both joined the Saudi team with an annual salary of $214 million, and at the same time, according to football reporter Romano, Messi, Modric, Kante and others have received offers from Saudi Arabia's high annual salaries, and it seems that it is only a matter of time before they join.
The two arch-rivals of the golf world came together, and the world was shocked by their merger.
At that time, LIV was just emerging, but the financial temptation brought by the Saudis attracted a number of high-level golfers from the beginning, allowing LIV to jump out of the novice village early. Because the PGA restricted players who had participated in LIV, the dispute between the two sides also rose to the legal level.
According to CNBC, the transaction between the two parties is expected to be officially announced in the near future, and all litigation between the two parties will be closed. In the end, the two reached a surprising reconciliation, and the reason behind this was the mutual use of money and resources.
Since the establishment of the LIV, a large number of professional golfers have switched to the Saudis due to the generous prize money, so the PGA Tour must increase investment to retain players. However, the lack of a donor behind the PGA Tour that can match the Saudis has contributed to the decline in the PGA's appeal. Journalist Broody Miller commented on TA: "The root of the partnership is that the PGA needs money now, otherwise it is difficult to interpret it in any other way. ”
From the perspective of LIV, even with the blessing of funds, the ratings of the competition itself are not high. The PGA, on the other hand, remains the darling of media companies — the PGA Tour has multibillion-dollar media rights deals with CBS, NBC and ESPN through 2030. Plenty of media resources left Yasser gluttonous, telling the Financial Times: "Logically, the two leagues have their own strengths and we should work together and not against each other. ”
On the other hand, it's also a good thing for golf fans. Broody Miller noted: "It's not good for anyone to have the best golfers split into different leagues and only play in major tournaments for four weeks a year. Since LIV ratings can't be compared to PGA, it means that many great players have practically disappeared from the minds of regular fans. Today, the best golfers will get back together and it's a win for the spectators. ”
Reaching a partnership is not a bad thing in itself, but PGA President Jay Monaghan has been stigmatized as a "traitor."
Previously, LIV recruited many top golfers with heavy money, and Monahan, the current head of the PGA, was harsh, comparing them to 911 supporters and believing that the Saudis' money was not clean. Monaghan previously told The New York Times that Americans will never forget how Saudi Arabia spent billions to fund terrorism during 911.
The sight of him and Yasser sitting at the same table talking about the merger is also ironic. The Financial Times revealed that Monaghan chose to trust Yasser ten minutes after negotiations, completely forgetting his previous remarks.
Although Monaghan's move provided significant support for the PGA, there was no doubt that his approach was a naked backstab for the stars who were firmly in the PGA camp at the time. TA revealed that Monaghan did not consult with the players, and McIlroy and Woods also learned of the merger through the media.
McIlroy and Woods.
According to TA's report, a year ago, LIV threw an olive branch of nearly $800 million and $500 million respectively in order to invite Woods and McIlroy to join, which was rejected by the two at the time. In contrast, Phil Mickelson received $200 million and Dustin Johnson received $100 million.
In the movie "The Richest Man in Xihong City", actor Chang Yuan's Liu Jiannan, played in the film, showed the scene of "looking at people accurately" when receiving a large amount of bribes, which has long been deeply rooted in the hearts of the people. According to Chad Mumm, producer of the Netflix golf documentary Full Swing, the realistic version of Liu Jiannan will meet the audience in the form of a documentary in early 2024, and the footage of the negotiations between the two sides has been realistically recorded.
At present, the phrase "Money talks" applies anywhere in the sports world.
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