Calacus Monthly Hit & Miss – Rory McIlroy & Jay Monahan
Every month we look at the best and worst communicators in the sports world from the last few weeks.
HIT & MISS - RORY MCILROY & JAY MONAHAN
Golf has been going though an existential crisis over the past couple of years as Greg Norman’s Saudi Arabia-backed rebel LIV Golf tour has shaken the very foundations of the sport.
Calacus has previously written about how the challenger brand approach has had mixed results – Norman’s brash and combative style at clear odds with the tradition golf is known for.
“Shot Just Got Real,” LIV Golf says on its website. “We exist to supercharge the game of golf.”
Using a new format, the LIV tournaments attracted big names such as Phil Mickelsen, Ian Poulter, Henrik Stenson, Dustin Johnson and Bryson DeChambeau on huge financial packages – although paying spectators and high-audience broadcast deals were harder to come by.
The US PGA and DP World Tour then banned ‘rebel’ players from taking part in events as well as removing their eligibility for the prestigious Ryder Cup.
CRITICISM OF LIV
It was no secret LIV Golf was backed by the Saudi Public Investment Fund (PIF), whose ‘Vision 2030’ plan is to increase non-oil related investment and improve the profile of the state.
Having already bought Premier League football club Newcastle United and secured a number of other sporting deals Saudi’s investments have raised concerns about sports washing – using sport to distract from the State’s questionable human rights record.
Lawsuits have accused Saudi of playing a role in the 9/11 attacks on the World Trade Center, for instance, as well as links to the murder of Washington Post journalist Jamal Khashoggi, a Saudi critic and U.S. resident.
PGA Tour commissioner Jay Monahan said at the time of the LIV Golf launch: “You’d have to be living under a rock not to know that there are significant implications” for signing on with LIV.
“I would ask any player that has left, or any player that would ever consider leaving, have you ever had to apologize for being a member of the PGA Tour?”
And Mickelson was even more critical in some unguarded comments which have since caused serious embarrassment while also being somewhat prescient.
“They’re scary motherfuckers to get involved with,” Mickelson told biographer Alan Shipnuck.
“We know they killed Khashoggi and have a horrible record on human rights. They execute people over there for being gay. Knowing all of this, why would I even consider it?
“Because this is a once-in-a-lifetime opportunity to reshape how the PGA Tour operates. They’ve been able to get by with manipulative, coercive, strong-arm tactics because we, the players, had no recourse.
“As nice a guy as [Jay Monahan] comes across as, unless you have leverage, he won’t do what’s right. And the Saudi money has finally given us that leverage. I’m not sure I even want [the Saudi golf tour] to succeed, but just the idea of it is allowing us to get things done with the [PGA] Tour.”
While Norman has been belligerent at best, players such as Tiger Woods and Rory McIlroy have stood firm, focused on maintaining the integrity of the sport.
McIlroy was highly critical of players accepting big LIV contracts and maintaining eligibility for Tour events, saying: “There’s no room in the golf world for LIV Golf. I don’t agree with what LIV is doing. If LIV went away tomorrow, I’d be super happy.”
COMMUNICATION IS KEY
One of the most important principles of communications, particularly when addressing an issue such as LIV Golf, is to have a plan, stick to it, and know what success looks like at its conclusion.
That relies on consistency and resolve, even in the face of mounting pressure. And it relies on collaboration and engagement with your stakeholders.
If Monahan had any indication that there was a situation where he would have to make such a dramatic volte face, he could have softened his messaging from the outset and advised his golfers to follow suit.
Asked last September about the possibility of a truce, Monahan said: “When you look at where we are, and you think about words and actions, we’re currently in a lawsuit, so coming together and having conversations, to me, that card is off the table, and it has been for a long period of time.”
Reassuring his loyal golfers that they were better off staying with the PGA and that they could attract competitive fields and prize purses was as much of a challenge as LIV had securing TV deals and significant ticket sales.
So it came as a shock in mid-June when it was announced that PIF has “combine[d]” its golf business with the PGA Tour and the DP World Tour to create one golf organisation with Monahan as its chief executive and PIF governor Yasir Al-Rumayyan (also Newcastle United’s Chairman) as Chairman.
The Saudi fund leader told CNBC he expected to invest “billions” into the new organisation, but with no clear plans for what the collaborative competitions may look like revealed at the launch, it underlined how far the partnership has to go.
The fact that the word “merge” was removed from the press release on the PGA Tour website with so much yet to be agreed underlines the lack of clear strategy behind the agreement – which should have been established before going public. It’s never a good indicator to sign an agreement and then try and work out what that means.
Players, executives and even Norman knew nothing of the ongoing negotiations, which were made without consultation or wider approvals, raising significant governance concerns.
No wonder world number two John Rahm said that players felt “a betrayal from management” with no engagement or clarity.
While there may have been legal ramifications that meant disclosures were impossible, at least until the day of the official announcement, the Tour clearly needed to be more transparent with its members.
But as a player-run organisation, the fact that event policy board members such as McIlroy were not informed was another significant misjudgment.
PGA pro Wesley Bryan spoke for many when he tweeted, “Love finding out info on Twitter. This is amazing. Y’all should be ashamed and have a lot of questions to answer.
“I feel betrayed, and will not … be able to trust anyone within the corporate structure of the PGA TOUR for a very long time.”
He went on to call Monahan a horrible communicator who stresses he “works” for the players — the same players he failed to update on the biggest golf partnership of all time.
Monahan would belatedly meet with the players, and admitted that “I recognise that people are going to call me a hypocrite.
“I would describe the meeting as intense, certainly heated. This is very complex. Obviously it’s been a very dynamic and complex couple of years and, for players, this is an awful lot to ask them to digest. This is a significant change for us in the direction that we were going down.
“But as I’m trying to explain and I will continue to explain as we go forward, this ultimately is a decision that I think is in the best interest of all of the members of the PGA Tour, puts us in a position of control, allows us to partner with the PIF in a constructive and productive way, to have them invest with us.”
DP World Tour CEO, Keith Pelley, said: “This is a momentous day. We are delighted to be able to not only reignite our relationship with PIF, but also to have the opportunity to build on our current Strategic Alliance partnership with the PGA Tour.
“Together we will be stronger than ever and well positioned to continue to bring the game to all corners of the globe. To partner in this new entity and influence the growth of the game for all our DP World Tour members is energizing and exciting.”
Not everyone was as enthusiastic.
Former pro golfer Brandel Chamblee, a LIV Golf critic, said: “I think this is one of the saddest days in the history of professional golf.
“I’m hugely disappointed and let down by [PGA Tour] leadership. One of the first things I thought about was, I wonder what Tiger and Rory and several other players who would have turned down tens of if not hundreds of millions of dollars to go to LIV would’ve thought.
“They stood on principle, and they fought for the PGA Tour, and they fought for the betterment of the PGA Tour. And this just came out of nowhere. I would imagine this is going to be a very hard and long day for Jay Monahan.”
McIlroy, the face of the PGA’s opposition to LIV for so long, showed why he is one of golf’s most important assets, getting the balance just right between dismay and determination that the sport of golf comes out of this stronger.
He said: “I still hate LIV. I hope it goes away. And I would fully expect that it does. And I think that’s where the distinction here is. This is the PGA Tour, the DP World Tour and the PIF. Very different from LIV.
“There still has to be consequences to actions. The people that left the PGA Tour irreparably harmed this Tour, started litigation against it.
"I told Jay, 'you've galvanised everyone against something and now you've partnered it'. Of course I can see how that looks hypocritical.”
But looking ahead, he added: “[In] 10 years this is going to be good for pro golf. It unifies it and secures its financial future. But there are mixed emotions in there as well.
“It's hard for me to not feel somewhat like a sacrificial lamb, feeling like I've put myself out there and this is what happens. Removing myself from the situation, I see how this is better for the game of golf, there's no denying it.
“All I've wanted to do is protect the aspirational nature of the PGA Tour. This company sits above everything. Anyone involved with LIV now answers to Jay.
"Whether you like it or not, the PIF is going to keep spending money in golf. Now the PGA Tour is going to control how that money is spent. At the end of the day, money talks, and you'd rather have them as a partner.
“I've made my peace with it. I've seen what's happened in other sports and businesses. I've just resigned myself to the fact this is going to happen. How do you keep up with people who have more money than anyone else? Let's use the money in the right way."
There have been reports that PIF will compensate those players who remained loyal to the Tours and missed out on the millions rebel players attained while LIV may be phased out, having not even been referenced in the initial press release.
LAW AND ORDER
The deal means that costly and potentially awkward litigation between the Tours and LIV has been dropped, sparing both sides of embarrassing disclosures which may hint at motive for the change of heart.
Given the long-lasting scars caused by 9/11, the collaboration understandably raised concerns beyond the sporting world.
Monahan said he “regretted” not communicating with 9/11 families before the deal was announced, which was never going to be enough for interest groups such as 9/11 Families United.
Court filings had suggested that LIV was creating a dossier on 9/11 families which had them fearing for their lives, so no wonder, in a statement, Chair Terry Strada said: “9/11 Families United is shocked and deeply offended by the newly announced merger between the PGA Tour and the LIV Golf league that is bankrolled by billions of sportswashing money from the Kingdom of Saudi Arabia. Saudi operatives played a role in the 9/11 terrorist attacks, and now it is bankrolling all of professional golf.
“PGA Commissioner Jay Monahan co-opted the 9/11 community last year in the PGA’s unequivocal agreement that the Saudi LIV project was nothing more than sportswashing of Saudi Arabia’s reputation.
“But now the PGA and Monahan appear to have become just more paid Saudi shills, taking billions of dollars to cleanse the Saudi reputation so that Americans and the world will forget how the Kingdom spent their billions of dollars before 9/11 to fund terrorism, spread their vitriolic hatred of Americans, and finance al Qaeda and the murder of our loved ones. Make no mistake – we will never forget.”
Amnesty International were clear that this was just the latest episode in Saudi’s attempts to enhance its reputation through sport.
“While this may have taken some golf fans and commentators by surprise, it's really just more evidence of the onward march of Saudi sportswashing," said Felix Jakens, Amnesty International UK's head of priority campaigns and individuals at risk.
"It's been clear for some time that Saudi Arabia was prepared to use vast amounts of money to muscle its way into top-tier golf - just part of a wider effort to become a major sporting power and to try to distract attention from the country's atrocious human rights record.
"Away from the glamour of the golf courses and the TV cameras there's been mounting repression in Saudi Arabia, with government critics and human rights activists arrested, a spate of unfair trials, and with the death penalty widely used, including as a tool of political repression.
"The world of golf may be about to put one of its most high-profile commercial battles behind it, but it's vital that this latest surge in Saudi sportswashing isn't allowed to obscure the increasingly dire human rights situation in Saudi Arabia."
Connecticut Senator Chris Murphy said on Twitter: “So weird, PGA officials were in my office just months ago talking about how the Saudis' human rights record should disqualify them from having a stake in a major American sport. I guess maybe their concerns weren't really about human rights?”
Richard Blumenthal, a Democrat Senator from Connecticut, has sought communications documents between LIV and the Tour dating back almost two years.
He sent letters to PGA Tour Monahan and Norman and said: “While few details about the agreement are known, PIF’s role as an arm of the Saudi government and PGA Tour’s sudden and drastic reversal of position concerning LIV Golf raise serious questions regarding the reasons for and terms behind the announced agreement.
“PGA Tour’s agreement with PIF regarding LIV Golf raises concerns about the Saudi government’s role in influencing this effort and the risks posed by a foreign government entity assuming control over a cherished American institution.”
The fact that there were lawsuits between the PGA and LIV, which were already reported to have caused some embarrassment from the Saudis, raises questions about the virtues and motives behind the agreement.
U.S. Senators Elizabeth Warren and Ron Wyden have asked the Justice Department to open an antitrust investigation into the planned deal and ongoing investigations will continue.
"The PGA-LIV deal would make a U.S. organization complicit – and force American golfers and their fans to join this complicity – in the Saudi regime’s latest attempt to sanitize its abuses by pouring funds into major sports leagues," the senators wrote, adding that "the deal appears to have a substantial adverse impact on competition, violating several provisions of U.S. antitrust law, regardless of whether the deal is structured as a merger or some sort of joint venture.”
The Democrats said in a letter to Attorney General Merrick Garland and antitrust chief Jonathan Kanter that the deal "deserves serious and urgent attention by U.S. antitrust agencies."
The PGA Tour said: “We are confident that once Congress learns more about how the PGA Tour will control this new venture, they will understand the opportunities this will create for our players, our communities and our sport, all while protecting an American golf institution.”
Whether that is enough to stop the US Department of Justice’s antitrust inquiry into the PGA Tour and their investigations of collusion and monopolisation is doubtful.
CONCLUSION
The partnership between Saudi Arabia and the world of golf has sent shockwaves that go way beyond the sport itself.
Al-Rumayyan, is now arguably the most powerful man in golf and the de facto face of Saudi Arabia’s growing sports portfolio.
He was invited to testify before a Senate committee, along with Monahan and Norman, and whether he does so will be telling.
Saudi officials have previously avoided public testimony under oath by claiming sovereign immunity and no doubt Al-Rumayyan could be asked about topics far beyond just LIV and golf.
As a representative of his nation, showing that he is prepared to engage and be more transparent could go a long way to reassuring those that fear for the future of sport hiding behind back-room deals and staged video interviews.
Perhaps golf fans won’t care, as long as the new partnership brings together the best of the best in the same competitions, beyond just the Majors, but how quickly new tournaments are launched and attract big audiences remains to be seen.
However he tries to package it, Monahan looks like a sell-out and cowardly after caving in to the financial temptations that PIF have offered.
It seems unlikely that he will regain the confidence of the players after his previous attacks on LIV and its executives which could leave his job security as fragile as his reputation.
Likewise, Norman was always critical of the PGA and has a reputation for aggression that could well see him expendable, particularly as leaked details of the new, brief agreement raised doubts about LIV Golf’s future, despite Norman telling players that it would continue into 2024.
Structured planning and communications could have limited the damage to golf and its governance and shown a vision players, fans and sponsors could have got behind.
Ignoring sporting and moral values for PIF’s untold riches may have brought golf together – but when PGA sponsors see their names alongside LIV or PIF or other Saudi properties, they too will face criticism from consumers who may not be quite as loyal as they once were.