"The Wave of Innovation in Golf Brought by Oil Money: Opportunity or Bubble?"

Newcomers Get New Opportunities, Stars Guaranteed Special Prize Money and Rest
World Ranking Points and Broadcast Rights Remain Challenges

The golf world is undergoing significant changes due to the aggressive influx of 'oil money.' Experts expect that the entry of oil money will trigger healthy competition in the golf industry, which has long been dominated by the United States Professional Golfers' Association (PGA) monopoly.

On the 16th, Professor Lee Jae-pil of the Golf Industry Department at Konkuk University Graduate School of Industry said, "The emergence of new leagues such as LIV Golf and the International Series presents unprecedented opportunities for players," adding, "Rookie players who have not been able to enter the PGA Tour have gained new avenues to showcase their skills, and established top players can now compete with more prize money and guaranteed rest."

Lee Shin, a commentator for MBC, also evaluated, "The influx of oil money has provided more entertainment not only for players but also for fans." He explained, "Among PGA Tour sponsors, there are more than 25 companies supported by Saudi Arabia or the United Arab Emirates (UAE), so Saudi capital has long acted as a major player in the PGA Tour and DP World Tour. It is natural that they are now moving to promote their own sports industry on the international stage. Bold attempts such as conducting 54-hole tournaments without a cut-off and allowing players to wear shorts offer new enjoyment for spectators that could not be seen in the PGA Tour."

However, there are opinions that the new leagues backed by oil money face considerable challenges to establish themselves as healthy competitors to the PGA Tour. One reason is that the PGA has doubled the total prize money for the Phoenix Open this year, using money to counter the oil money, which has weakened the competitiveness of the new leagues.

Lee said, "As the PGA Tour has deliberately started raising prize money, the power of LIV Golf, which boasted prize money in the hundreds of thousands, has also waned," and predicted, "If LIV Golf increases the number of tournaments to 24 by next year, establishes major-level tournaments, and resolves issues related to world ranking points, it could become competitive." He believes that this foundation should be laid within three years, the period when contracts with top-ranked players such as Phil Mickelson and Cameron Smith expire.

There are also considerable concerns that new leagues like LIV Golf will struggle to expand their fan base due to inherent limitations. Currently, LIV Golf is broadcast only through digital platforms such as YouTube and Facebook. Major U.S. broadcasters are shunning LIV Golf because of the Saudi capital backing it.

Professor Lee Jong-sung of Hanyang University’s Sports Industry Department said, "Although LIV Golf recently signed a broadcasting contract with the U.S. CW Network, its influence is weaker compared to major broadcasters like ESPN and CBS," predicting, "If this issue is not resolved, LIV Golf and the PGA Tour are likely to settle into a 'major-minor league' structure rather than a competitive one." He advised, "The only way for LIV Golf to survive is through contracts with OTT platforms. LIV Golf should create a production company or sign contracts with channels where production companies and OTTs are linked in a consortium to find a breakthrough."

This content was produced with the assistance of AI translation services.