Greg Norman’s carefully constructed image of a man who swaggers across the global stage disrupting industry, dictating terms, and settling scores shows a common delusion among courtiers, who see themselves as being in the same vein as those they work for. Norman is far from being compared to MBS or Yasir al-Rumayyan (the Crown Prince’s bagman at Saudi Arabia’s sovereign wealth fund), but Norman often recalls another legend from the region, Muhammad Saeed al-Sahhaf.
Al-Sahhaf will be remembered more as “Comical Ali”, a nickname he earned while serving as Saddam Hussein’s spokesperson during the Iraq War 20 years ago. Every word he spoke defied all evidence. Most notable was his insisting that American troops were killed outside Baghdad while U.S tanks passed through the same neighborhood where he stood. Even though Norman lacks the humor provided by Al-Sahhaf, Norman’s smug endorsement of middle eastern autocrats seems all too familiar.
LIV’s novelty value has diminished after a year of making a splash. The time is fast approaching when it will sink, or swim. Norman continues to look for the positives, much like he did at major championships on Sunday nights.
He presented the fact that Justin Thomas met with LIV – and didn’t immediately squat about the concept – as evidence of the league’s success. However, he forgot that the conversation occurred some time ago, and that Thomas has remained vocally loyal to PGA Tour. Norman claimed that Tiger Woods, Rory McIlroy and Rory McIlroy had “no idea what they were talking about”. He then accused them of being childish by saying that he needed to be replaced as CEO. Before adding that LIV is still open to them just as the arms of a drowning man are open to anyone who wants to give him a life vest.
Norman insists that his position is secure, despite reports that Mark King, former TaylorMade CEO and CEO, could replace him. “I have the support of my chairman. One hundred percent. One thousand percent. It has never been possible to prove otherwise. He said that he was completely confident, displaying the same blithe confidence he displayed on Saturdays. Norman is well aware that security is scarce in LIV’s well-fed food chain.
Atul Khosla was the league’s chief operating officer. He spoke to the media about plans for corporate sponsorship and a broadcast rights agreement. He was fired this week. The business landscape is largely unchanged since Sean Bratches left as chief commercial officer seven month ago. There has been no TV deal, no traction among fans, no audience for live streaming, no sign that players are leaving, and no sponsorship interest. Norman’s sloppy statement to confirm Khosla’s departure did not mention LIV’s “successful initial season.”
Another key executive was onboarded following a degrading New York Times Report on Dec. 11. This report detailed the struggles facing Saudi golf ambitions. It was based on McKinsey and Company’s 2021 report. McKinsey is a long-standing patron of odious clients. The company has previously identified Saudi dissidents via social media and were later targeted by government authorities. But even its trusted toadies couldn’t create a plausible path for LIV to success, at least not as an investment.
McKinsey made sure to point out that McKinsey was not challenging LIV’s absurd assumptions. Based on this, McKinsey suggested that the most optimistic scenario, which required signing all top players, obtaining a broadcast contract, and not being pushed by the PGA Tour, would result in earnings (not profits) of several hundred millions dollars per year by 2028. If they fail to meet these benchmarks, as is the case, losses could exceed $350 million per year. This study was done before LIV could throw huge sums at players in order to get them to sign on.
The report, in the jargon of consultancy, was a neon stop sign. McKinsey developed a decision matrix, which was ignored by the market. LIV was launched without any market research to determine if it was a product desired by Norman or other agents and players who would eat into MBS’s pockets. McKinsey’s report was ignored. This shows how few people in Riyadh had to be sold a bill for LIV to make it this far. This is a reminder of how few people need to lose faith before the plug can be pulled.
No matter if their ultimate goal was to use golf for commercial enhancement or reputational enhancement, the Saudis are at an inflection point where they won’t be mistaken for fools. Although it is further along the road than others, it exists. Norman’s indefatigable public bluster is not enough to make LIV realize the reality that his words won’t matter in the face of the sobering numbers.
