Sergio Garcia reportedly had a locker-room rant at the BMW International early in July. He said that, among other things DP World Tour is in a bad situation – but he also used some choice four-letter terms – and his fellow competitors would have been better off taking the money offered by LIV Golf if they’d known about it.
The DP World Tour has just completed a successful season in Dubai, United Arab Emirates. It played for record purses in Dubai and strengthened their strategic alliance with PGA Tour. In June they signed a framework deal with the Tour and Saudi Arabia’s Public Investment Fund. There is still much to be seen, but a long-time DP World Tour member, board, European Ryder Cup 2014 captain, and Golf Channel/Sky TV commentary are tired of hearing the critics trash this deal.
McGinley explained that when you are the little guy up against a giant like the PGA Tour, the odds against you are stacked. When a new giant comes onto the pitch, in terms of money such as the Saudis, and there are two on either side with you in the middle and the little guy on the other side you find yourself in a precarious situation.
The European players raise their captain Paul McGinley while he holds the Ryder Cup trophy.
The first decision that the DP Tour had to make goes back almost two years, on November 27, 2021. This was the time when the PGL existed and the original alliance of the PGA Tour with the DP World Tour. It effectively stymied Andy Gardiner’s brainchild, the PGL.
McGinley tells Alan Shipnuck, author of Liv & Let Die, that Jay came in heavy. “He showed us his color.”
Unnamed PGA investors stated: “Monahan threatened to take their sponsors, and said he’d pump money into purses for Tour events that were played opposite Euro Tour flagship events in order for all top Europeans to stay in the States. He could have as well parked tanks outside Keithy Pelley’s office.
Shipnuck writes that the European Tour’s top executives made their case for a better deal. Guy Kinnings argued for an alliance with the PGA Tour, while Rufus Hack pushed for a merger with PGL. Shipnuck writes that “Monahan’s offer would provide the European Tour with a much-needed cash infusion, without having to sell their soul. While allowing the PGA Tour a competitive advantage for a fair price. Part of the deal, the European Tour was barred from partnering or supporting other tours.”
It was a crucial decision to reshape the trajectory of tour that DP World Tour and PGA Tour extended their relationship, particularly in terms of international competitions.
McGinley thought, “We were faced with a difficult decision: do we want to die slowly if we don’t act or align ourselves with a titan?” Venture capitalists will tell you that it is not all about the money, especially when managing a membership organization. We had to balance not only the finances but also the future and security of the European Tour. It was hard to gauge how committed the Saudis would be in the long run and if they could disappear just as fast as they appeared. It was a realistic possibility.
“The idea that we aligned with the Saudis was a huge risk for our members, because A, it would have pissed the PGA Tour off massively. They would have never done business with us again. In fact, they would go out of their way in order to bury us. We would have been vulnerable if the Saudis had decided after two years that we were losing money playing golf. We made a shrewd decision to align ourselves with the PGA Tour. It was the least risky and most logical choice. This was a great deal for us.
The odds were in our favor, and we hitched up our wagon knowing that our days of going toe-to-toe with the PGA Tour have passed.
McGinley says that the PGA Tour has accelerated its business model in the past five years. This is mainly due to TV rights. He’s now convinced that the European Tour will never compete again with the PGA Tour as it did during its heyday.
Paul McGinley leads Europe to Ryder Cup glory in 2014.
McGinley stated, “These misty eyed people who think the days of Seve Langer are over, is bullshit. The commercial model has not exploded in America, hasn’t, and won’t, in Europe.” McGinley said, “We were forced to deal with certain dynamics and are at the mercy of those who criticize it. But they’re not doing so based on facts.”
The majority of critics overlook the fact that the European Tour’s board is extremely strong.
Martin Gilbert, the founder of Aberdeen Asset Management – one of the largest funds in the World – is on the policy committee and he is responsible for assessing risks.
Do you believe that when it comes down to the details, David Howell and Thomas Bjorn were at the forefront of all this? Absolutelly not. He said, “We had experts on the board who were doing the deal.” “We were advised well from a business perspective. We made a deal with the PGA Tour that was well thought out and planned.
McGinley believes the DP World Tour has a better position. While the fortunes of the circuit may still be changing, he argues the European Tour weighed their options and decided that the PGA Tour’s safety was a winning combination.
McGinley stated that the good news was that by aligning ourselves with America, we made a great financial deal. All of our players have committed to play four events outside the majors and world events. They will also continue to return to Europe and compete in European Tour events. We’re going to play for record prize money this year. Last year we did the same thing. And that’s guaranteed over the next 13-years. Tell me why that is a bad deal. We’ve reduced our risk. The PGA Tour won’t disappear in three years, but the Saudis might. We could not take the risk. This would have not been proper due diligence on our part as a member’s organization representing 500 people.”
