It shouldn’t surprise that LIV Golf lost almost nothing in its first year after spending $700 million to recruit talent and make its product in 2022.
Greg Norman, the founder of the upstart circuit and supported financially by Saudi Arabia’s Public Investment Fund, is currently involved in an antitrust case against the PGA Tour. LIV lawyers admitted to “virtually no” revenue in 2022, according to a motion filed with the U.S. District Court for Northern California. This was in opposition to the Tour which wants to add PIF’s governor Yasir AlRumayyan as plaintiffs in a countersuit to LIV.
PGA Tour lawyers presented four reasons earlier this week to delay current trial date and to extend the discovery schedule in the ongoing antitrust case. This move was deemed “exploiting litigation” by LIV Golf lawyers.
The trial is being overseen by Beth Labson Freeman, U.S. District Judge. It is currently scheduled for January 2024. March 30 is the deadline for document discovery. The deadline for fact discovery is May 26. Freeman will hear arguments for delay and against delay on February 24.
LIV’s lawyers wrote that the Tour’s motion for amendment should be denied. The amendment would have been futile and would have caused unfair prejudice. It was also unduly delayed and clearly intended to improperly delay the case as well as resolution of Plaintiffs antitrust claims. LIV will also be affected by delay because the Tour is continuing its anticompetitive conduct during the litigation. LIV has suffered from the Tour, which has caused LIV to lose its brand and increased its costs by hundreds upon millions of dollars. It also reduced LIV’s revenues to almost nothing.
In August last year, eleven LIV Golf players, including Phil Mickelson, and Bryson deChambeau filed a federal antitrust suit against the PGA Tour . In the past six months, several players joined or dropped the suit. Now, only LIV Golf, DeChambeau and Matt Jones remain.
LIV Golf officials presented some of their future plans and discussed how the team format was progressing during a meeting with selected media members. LIV Golf hopes to eventually have a business model similar to the NFL or other major sports teams. Franchises could also be a way for LIV to generate additional revenue streams.
Atul Khosla (former Chief Operating Officer) said that a successful 2023 would include 12 brands and established teams, along with a commercialized product.
Khosla explained that “We have to be on TV, and we’ve to have corporate partners.” In October. “Those are the things we need, these are milestones we need to reach go into next year.”
LIV has announced a multiyear broadcast deal with CW last month. However, the deal is reportedly a Revenue-Share in which LIV doesn’t get rights fees but continues to pay production costs.
LIV will be back in action with the inaugural event of its rebranded 14-event league, which will take place at Mayakoba’s El Camaleon Golf Course on Riviera Maya from February 24-26.
