Ogilvie: Pro Golf's "Unbundling" Phase?

Phil Mickelson embraces Golf Saudi’s Majed Al Sorour (John Phillips/LIV Golf/Getty Images)

Former PGA Tour winner Joe Ogilvie has retired and gone into managing private equity but took to Twitter to offer this fascinating analogy of the current affairs pitting the PGA Tour vs. the Public Investment Fund Of Saudi Arabia.

Professional golf has just entered the unbundling phase. @TigerWoods first professional @PGATOUR event was almost 26 years ago, which led to the bundling of talent on one tour. Purses on the @PGATOUR went up, TV revenue went up and quality of all tournaments were elevated.

— Joe Ogilvie (@ogilviej) June 10, 2022

@PGATOUR had a massive advantage, 3/4 majors are on US soil , tournaments were better, purses much larger and players only had to traverse 3 time zones. World golf had no chance and the flywheel started. Finchem created the WGCs and #FedExCup, global talent was hooked.

— Joe Ogilvie (@ogilviej) June 10, 2022

Then along came negative interest rates. This bizarre idea conjured up by central bankers came along in Europe in 2014 (Japan & Sweden were 1st) and got progressively crazier through 2019. This caused private equity money to explode, with seemingly free money, new ideas are born.

— Joe Ogilvie (@ogilviej) June 10, 2022

Rival #golf tours started to come out of stealth mode around 2018, which makes sense. If $1 today is worth less than $1 10 years from now, why not spin up a professional golf league? #COVID paused things, but then the greatest asset bubble in history ensued.

— Joe Ogilvie (@ogilviej) June 10, 2022

Now there was not 1 rival tour (@premgolfleague) but 2! @LIVGolfInv pressed the accelerator down to the floor w/the greatest funding source in the world, at the exact same time the bubble started to burst and inflation exploded. Convenience and money are really compelling.

— Joe Ogilvie (@ogilviej) June 10, 2022

The same exact thing that brought the global golfer to the @PGATOUR, (convenience and money,) @LIVGolfInv multiplied by 3-5X. Rhymes a whole lot with what @netflix did, shot a money cannon straight through Hollywood…it also unbundled the TV/cable package. So what comes next?

— Joe Ogilvie (@ogilviej) June 10, 2022

@PGATOUR is in a pickle. They have the legacy & resources to compete, they also have relationships. You know who is the #ObiWan of golf? Chairman Fred Ridley. @LIVGolfInv killed it on their debut. Many more will jump ship, the money is too compelling, these guys run a business.

— Joe Ogilvie (@ogilviej) June 10, 2022

I doubt there is another league, unless @DPWorldTour partners w/ one…interest rates are going up & the money spigot is shutting. I doubt the guys who have jumped ship are banned forever by the @PGATOUR, eventually there will be bundling again.

— Joe Ogilvie (@ogilviej) June 10, 2022

The ball is in the @PGATOUR’s court but the clock is ticking. The golf world awaits a plan, hope they come up with a good one…

— Joe Ogilvie (@ogilviej) June 10, 2022