The PGA Tour and LIV Golf sure have a funny way of showing unity.
Six months ago, when the tour and Saudi Arabia’s Public Investment Fund, which finances LIV Golf, reached their “framework” agreement, it was written that the sides would not poach each other’s players. But that language was removed on recommendation from the Justice Department because of antitrust concerns. Still, the PGA Tour was not concerned, saying it was unnecessary because “all parties are negotiating in good faith.”
How’d that work out?
Jon Rahm, the No. 3 golfer in the world and reigning Masters champion, announced Thursday on Fox News that he was leaving the PGA Tour for the riches of LIV Golf. Not only is this a major win for LIV, but something just feels different about this signing.
At the very least, it appears LIV now holds all the leverage. At worst for the PGA is Justin Rose’s fear. He said Thursday that if this starts a trickle-down effect, “That’s not good.”
“I think a lot of people are going to be thinking, how’s he leaving when we are supposed to be merging?” Rose said from the Grant Thornton Invitational. “But I don’t think we’re very close to that being the real situation.”
The signing of the Spanish star comes weeks before the Dec. 31 deadline to finalize the PGA/LIV agreement. With that deadline already being pushed back, according to several recent reports, this news now has everyone wondering if it will fall apart and return professional golf to a state of chaos.
Rahm’s deal reportedly is for more than $300 million over three years with bonuses pushing that number to more than $550 million.
The PGA Tour’s entire purse for the 2023 season was $460 million.
The PIF reportedly was investing $1 billion to $2 billion into the PGA Tour as part of the agreement and already has put north of $2 billion to launch LIV with little or no return on that investment.
Even with assets of more than $700 billion, why would PIF drop more than a half billion more on one player if this deal with the PGA Tour is going through?
This is about leverage for LIV, regardless of whether a deal is finalized. If a deal is reached, LIV is prepared to operate as it has through its first two seasons even if it falls under the same umbrella as the PGA Tour. If a deal is not reached, the league has done what most originally believed, double down on its fight with the PGA Tour.
For LIV, this is the biggest signing since the original list, bigger than Brooks Koepka or Cameron Smith, mostly because of the timing.
LIV’s credibility continued to fall, even with a first-year haul of PGA Tour players that exceeded most expectations. Sponsors have been slow to come aboard. Its television deal was laughable. The league has had a difficult time getting people to buy into its unique format, including the team concept. And the Official World Golf Ranking board dealt LIV a big blow by rejecting its application for its golfers to receive points.
The league promised it was adding more big names a year ago during the offseason and those turned out to be Thomas Pieters, Mito Pereira, Sebastian Munoz and Brendan Steele.
Not exactly household names and nowhere near the significant upgrade it now receives with Rahm.
All of which prompted this admission from Smith at last year’s Masters.
“I’ll be the first one to say, the (LIV) fields aren’t as strong,” he said.
LIV golfers have won 14 majors since 2015
LIV still has a long way to go, but adding Rahm does close that gap some. Since 2015, 31 majors have been held, LIV players winning 14 of those, including two by Rahm.
Jon Rahm is presented with the green jacket after winning the 2023 Masters. (Photo: Michael Madrid-USA TODAY Network)
For Rahm, the move is not unlike many that came before him by players who trashed LIV’s product and swore their purpose for playing golf was about legacy and tradition and not money.
Rahm has every right to play on whatever tour he prefers, make as much money as he wants, and insist he does “not play golf for the money.” He can even try to convince us the $51.5 million he’s earned on the PGA Tour in his career, and millions more on other tours and from sponsors, wasn’t enough to take care of his family.
“I have a duty to my family to give them the best opportunities and the most amount of resources possible,” Rahm said. “And that’s where that comes in. Obviously, it is a factor, and it was an important one, obviously, in this decision.”
Obviously.
Unlike many of his peers, Rahm does not have to worry about his world ranking. Rahm’s victory in the 2023 Masters gives him a spot in the four majors for the next five years, and the Masters for life.
Rahm is the sixth LIV golfer, joining Koepka, Smith, Dustin Johnson, Bryson DeChambeau and Phil Mickelson, with an exemption into all four majors in 2024.
What could be in jeopardy is his spot on Ryder Cup teams. He was a member of this year’s winning European team, but under the current rules, he is ineligible for future Ryder Cups. Rory McIlroy was outspoken Thursday about the European tour having to “rewrite the rules” to allow Rahm to play at Bethpage in 2025.
And Rahm has been as outspoken as anyone about his desire to remain on the PGA Tour, because “there’s legacy,” and his desire to “play against the best in the world.” He’s said LIV’s format is “not a golf tournament” and those who left understand the consequences.
“I’ve been very happy,” Rahm said Thursday. “But there is a lot of things that LIV Golf has to offer that were very enticing.”
Most of those are colored in green.