GBR WEEKLY | Yasir Al-Rumayyan in the Hot Seat: The Future of Saudi Arabia's PIF Amid Leadership Scrutiny and Strategic Shifts
Examining the Pivotal Changes and Strategic Shifts in Saudi Arabia's PIF and Their Impacts on Global Investments and Sports Ventures
Greetings, GBR Community!
As you transition into your daily routines, we invite you to take a moment and immerse yourself in our succinct roundup of the week’s golf industry news.
Our dedicated team has been tirelessly perusing over 40 industry publications, more than 25 mainstream media outlets, a range of golf newsletters, and a handpicked selection of quality podcasts. We’ve distilled this abundance of information into a comprehensive summary that will keep you informed about the week’s events in under 10 minutes.
Here’s what we’ve compiled for you this week:
Examining the Pivotal Changes and Strategic Shifts in Saudi Arabia's PIF and Their Impacts on Global Investments and Sports Ventures
PGA Tour and Elon Musk's X: A New Chapter in Sports Video Streaming
Blockbuster PGA Championship Continues Trend Of Improved TV Audiences
DeChambeau Gives Us A Glimpse Of What We Are Missing?
Toptracer Helps Driving Range Revenue Increase By 90%
Grayson Murray in Memoriam
Yasir Al-Rumayyan in the Hot Seat: The Future of Saudi Arabia's PIF Amid Leadership Scrutiny and Strategic Shifts
Saudi Arabia’s Public Investment Fund (PIF) is at a crossroads, facing a pivotal moment that could reshape its leadership structure and strategic priorities. This $925 billion sovereign wealth fund, helmed by Yasir Al-Rumayyan (YAR), is the financial backbone of Crown Prince Mohammed bin Salman's Vision 2030, a bold initiative aimed at diversifying the Saudi economy away from its dependence on oil.
Reevaluating Leadership and Strategy
At the center of this potential reorganization is YAR, the heart and soul of LIV Golf, whose leadership is now under intense scrutiny. Appointed in 2015 by the Crown Prince, Al-Rumayyan has been a driving force behind the fund's expansion and diversification. Under his guidance, the PIF's assets have grown from $150 billion to $925 billion, investing in a wide array of sectors, from local enterprises to global giants like Uber and SoftBank [The Economist: Saudi Arabia’s investment fund has been set an impossible task, Mar 14th 2024]. However, the increasing complexity and scale of the fund necessitate a potential redistribution of duties.
Sources indicate that this restructuring could involve combining certain business lines and creating new ones to streamline operations and enhance efficiency. Additionally, the PIF is reviewing its expensive consultancy contracts, including those with firms like McKinsey and BCG, as part of its cost-management efforts.
Focusing on Realistic Goals
One of the critical aspects of the PIF's reevaluation is its approach to the ambitious NEOM project and other giga-projects. NEOM, a massive urban development envisioned to be as large as Belgium, has faced scaling back due to rising costs. The futuristic city, The Line, which features mirrored walls extending 170 km into the desert, is among the projects being revised.
I like this angle from Geoff Shackleford, at The Quadrilateral: It appears that the Crown Prince’s NEOM project and the broader Vision 2030 initiative are part of the problem, contributing to the financial strain alongside Al-Rumayyan’s numerous board seats and not funding certain lavish expenditures, such as not giving golfer Pat Perez millions to buy more Jordans.
UNSOLICITED DISCLORURE: Pat Perez, a professional golfer known for his extravagant collection of Air Jordans, has over 1,000 pairs of these iconic sneakers. Perez's collection is a testament to his love for the brand, which has grown substantially over the years. His association with Michael Jordan and the Jordan brand has afforded him unique and rare pieces, making his collection one of the most impressive in the sports world.
International Ventures and Sports Investments
In parallel, the PIF's international investments have been dynamic, particularly in the sports sector. The PIF's involvement in sports doesn't end with LIV Golf. It owns English soccer club Newcastle United and has also made significant strides in Spanish football. The PIF has shown interest in the Spanish football Super Cup, a prestigious tournament also known as the Supercopa de España. It is a competition that has been contested since 1982 by the winners and runners-up of the Copa del Rey and La Liga. Real Madrid is the current champion after defeating Barcelona in the 2024 edition held in Riyadh.
In addition to football, the PIF has also formed a notable agreement with the Rafa Nadal Academy. This collaboration, which covers the next three years, will see the organizations offer two-way support and launch a series of joint projects and initiatives.
Negotiations between the PGA Tour and the PIF are reportedly "still very much alive," with the PIF potentially injecting $1.5 billion into the Tour’s for-profit arm. This deal would be a significant boost to the PGA Tour, which has already seen $1.5 billion in investments from U.S. investors. However, this potential partnership raises complex issues, including the future of LIV Golf and antitrust concerns from the U.S. Department of Justice. Lauren Hirsch, "Report: PGA Tour, PIF talks 'still very much alive'," The New York Times, May 21, 2024.
The Bigger Picture
These developments highlight the dual challenge facing the PIF: managing its vast and diverse portfolio while navigating the economic and political landscape. The fund’s recent market adjustments, such as halving its U.S. stock holdings and raising funds through bond and sukuk sales [Miles Weiss, “Saudi Wealth Fund Slashes Reported Holdings of US Equities”, Bloomberg, May 15, 2024] demonstrate its proactive approach to maintaining financial stability.
For further details, you can refer to the original articles from Reuters and the New York Times:
Pesha Magid, Rachna Uppal, and Alexander Cornwell, "Exclusive: Saudi Sovereign Wealth Fund to Reorganize Management Amid Budget Crunch" Reuters, May 24, 2024.
Lauren Hirsch, "Report: PGA Tour, PIF Talks 'Still Very Much Alive'" The New York Times, May 21, 2024.
PGA Tour and Elon Musk's X: A New Chapter in Sports Video Streaming
The PGA Tour and Elon Musk's social media platform X, formerly known as Twitter, have embarked on a new partnership, marking a significant move in the realm of sports video streaming. This collaboration, announced on May 22, 2024, by X CEO Linda Yaccarino, is part of a broader strategy by X to expand its video content and capitalize on the growing trend of sports media moving online.
The Partnership's Roots and Evolution
The partnership between the PGA Tour and X originated in 2015 when the tour started participating in the Twitter Amplify program. This allowed advertisers to sponsor its content.This initial collaboration set the foundation for a more integrated partnership.
In 2016, the PGA Tour broadened its presence on Twitter by streaming live rounds during the first two events of that year’s FedExCup Playoffs.
By 2019, the partnership had evolved to include live coverage of every PGA Tour event on Twitter.
In June 2020, during the pandemic, the partnership innovated with Twitter Multicasts. Celebrities and personalities provided live commentary on PGA Tour events, enhancing viewer engagement at a time when traditional sports coverage was disrupted.
The Latest Extension and Its Implications
The recent extension of this partnership will focus on delivering real-time highlights and more video content from each PGA Tour event. While live streaming will not be part of the new deal, the PGA Tour will continue to leverage X to share immediate highlights and engaging videos, keeping fans connected to the action as it unfolds. "PGA Tour extends partnership with X for one year," SBJ, May 22, 2024.
Yaccarino emphasized the platform's commitment to being the "best place for sports," highlighting the platform's strategic shift towards video content. "Golf fans — you’re getting MORE of the TOUR," she announced, reinforcing X's dedication to sports coverage. Robert Hart, "Elon Musk’s X Partners With PGA Tour In Sports Video Push," Forbes, May 22, 2024.
Impact on the Sports Media Landscape
This partnership places X in direct competition with tech giants like Amazon and Apple, who are also vying for sports media rights. As traditional broadcasters face dwindling audiences, the move to digital platforms like X is becoming increasingly attractive for sports organizations seeking to reach a more engaged and tech-savvy audience.
For the PGA Tour, this partnership with X represents an opportunity to enhance its digital footprint and engage with fans in real-time, offering a more interactive and immediate viewing experience. As the sports media landscape continues to evolve, collaborations like this one between the PGA Tour and X are likely to become more common, reshaping how fans consume sports content.
Blockbuster PGA Championship Continues Trend Of Improved TV Audiences
The PGA Championship 2024 will live long in the memory for many reasons.
Xander Schauffele claimed his first major championship title to add to his gold medal from the 2020 Olympic Games, holding off a final day charge by Bryson DeChambeau who closed out with a scintillating final round 64.
Jonny Leighfield reported on Golf Monthly that the final day excitement proved to be a hit with TV audiences, with CBS reporting a 10% increase over the final day’s action from the 2023 PGA Championship.
The average viewing figure was just under 5 million (4.958 million), which increased to 7.8 million watching the last hour of coverage, reaching a peak of 8.4 million as Schauffele held his nerve to roll in his six-foot birdie putt on the last to claim victory.
Compared with the last five PGA Championships, the 2024 edition was marginally down on the 2022 and 2020 final-day events. Both these PGAs had to be settled in a playoff, with Justin Thomas winning in 2022, and Collin Morikawa capturing the 2020 title.
Phil Mickelson’s emotional and historic victory at Kiawah Island in 2021 saw the highest average final-day viewing figures, with 6.583 million tuning in throughout the final round.
Final day aside, Friday saw its highest average viewing figures of 1.6 million as news broke of Scottie Scheffler’s dramatic arrest.
The strong TV audience figures will please CBS as the final round coverage overlapped with the NBA playoff game between the Pacers and the Knicks in the Eastern Conference semi-final, game 7, shown on ABC.
CBS had more reasons to be happy. As reported in last week’s GBR Weekly Bulletin, the PGA Championship at Valhalla was the first tournament to support 5G connectivity via mobile provider, T-Mobile. CBS piloted wireless 5G cameras on the golf course to provide a more immersive and cinema-like quality to its broadcast.
DeChambeau Gives Us A Glimpse Of What We Are Missing?
Bryson DeChambeau shot a final round 64 at Valhalla Golf Club and pushed Xander Schauffele all the way to the last green in a hugely exciting and entertaining final round of the PGA Championship. Although DeChambeau fell one shot shy in the end, his disappointment can be partially offset by the huge support he received from the Valhalla fans, who cheered him on with every shot in his pursuit of his second major championship.
It hasn’t always been this way.
DeChambeau was a figure derided by golf fans and plagued with chants of “Let’s Go Brooksy” following his very public spat with five-time major champion Brooks Koepka. Fans have also been polarised by DeChambeau’s unique approach to golf. From the one-length irons to his pursuit of more power through an extreme bulking-up process, DeChambeau has never been one to follow the crowd.
Joining LIV was another flashpoint and a further reason for fans to give him a hard time. DeChambeau has been relatively low-key on his move to LIV and has been a voice in favor of consolidation between the warring tours in recent months.
But DeChambeau has shown another side of his personality. Through his YouTube channel, DeChambeau has let us in to see more of his life and let us understand a little more about what makes him tick.
His performance in the majors in 2023 didn’t set the world alight, but this year has been different. DeChambeau finished 6th in The Masters, where he led after the first round and was never too far off the pinnacle of the PGA Championship leaderboard before he went on a tear on Sunday.
DeChambeau showed in that round what is possibly lacking in the current crop of PGA Tour players: passion. The uppercuts got more extreme with every putt holed, and DeChambeau let the fans know how much it meant to him to be in the mix. For their part, the fans responded in kindness; they couldn’t get enough of DeChambeau; whether it was walking to the next tee, the booming drives, quality iron play, or those putts he was having no problem holing, the fans willed DeChambeau on.
DeChambeau was the undoubted star of the final round, and he revelled in the adulation he was receiving. Speaking to the media after the final round, DeChambeau shared his thoughts on the bittersweet feeling of coming up one shot shy of his second major and the reception he received from the Kentucky locals during the week:
“I gave it my all, I put as much effort as I possibly could into it and I knew that my B game would be enough. It’s just clearly somebody else played incredibly well. Xander is well deserving of a major championship. I was emptying the tank. I certainly love to do that and give the fans everything I can.”
Brice DeChambeau, sharing his thoughts on the bittersweet feeling of coming up one shot shy of his second major
Whether DeChambeau can continue his fine major form at Pinehurst No. 2 at the U.S Open next month, or the Open Championship in July is anybody’s guess, but his performance and the way he showed his emotions give us a reminder of what we are missing most weeks outside the majors.
Toptracer Helps Driving Range Revenue Increase By 90%
Situated on the outskirts of Glasgow, Scotland, Playsport Golf Range introduced Toptracer technology in 2022, which has helped revenue grow by 90% between 2022 and 2023. Covered in Golf Business Technology, Playsport’s drastic revenue improvement was linked to 52% more golf balls hit at the range in 2023 after the implementation of Toptracer compared to 2022.
The introduction of Toptracer technology at Playsport Golf Range, one of the UK’s largest, has revolutionized the golfer’s experience by providing quality statistical data for skill improvement and simulated courses for social engagement. It also introduced competition modes, incentivizing golfers to participate in a variety of skill-based challenges.
Colin McEwan, Playsport’s Director and General Manager, attributes the business growth not only to the technology but also to the ongoing support from Toptracer, highlighting the regular contact with key personnel. This success underscores the potential of technology like Toptracer in transforming driving ranges into immersive experiences for golfers of all levels, offering an appealing alternative as full rounds of golf take longer to complete and courses experience more full tee times.
Fanatics Secures Comprehensive Merchandising Deal with The R&A
In an exciting development for golf enthusiasts, Fanatics has secured an extensive retail and merchandising partnership with the R&A, the governing body for golf outside the USA and Mexico. Announced on May 23, 2024, this long-term agreement covers e-commerce, event and physical retail, memorabilia, and licensing rights for The Open and AIG Women’s Open.
Key Highlights:
E-commerce and Retail: Fanatics has relaunched the official online R&A Shop and will manage The Open Shop in St Andrews. They will also oversee event retail at The Open and AIG Women’s Open, starting with the 152nd Open at Royal Troon, which expects 250,000 attendees.
Comprehensive Merchandise: The partnership will offer a vast range of merchandise, including headwear, apparel, lifestyle wear, and limited-edition collections. Fanatics will also produce and market official supporter apparel and accessories for these prestigious tournaments.
Fan Engagement: This collaboration aims to enhance fan engagement globally, introducing products that cater to a diverse audience. Neil Armit, Chief Commercial Officer at The R&A, praised Fanatics' expertise, saying they are the "natural choice" to elevate the retail and merchandise offerings for The Open and AIG Women’s Open.
Strategic Impact:
Fanatics, already partnered with major sports organizations like the United States Golf Association (USGA) and TGL, a tech-forward golf league by Tiger Woods and Rory McIlroy, will leverage its extensive experience to offer an unparalleled shopping experience for golf fans. This partnership promises to bring fresh, exciting products to the market, enhancing the accessibility and inclusivity of golf merchandise.
More info here: “Fanatics secures retail and merchandising partnership with golf’s R&A," The R&A, May 23, 2024.
🎗 Grayson Murray in Memoriam: PGA TOUR winner passes away at 30 🎗
We are deeply saddened to share the news of the untimely demise of Grayson Murray, a remarkable golfer, on Saturday, 25th May. At the young age of 30, Murray had already made his mark in the world of golf. He clinched his second PGA Tour title at the Sony Open in Hawaii in January, with a memorable 40-foot putt on the final green that sealed his victory. More recently, he competed at the PGA Championship at Valhalla, finishing in T-43.
Murray continued to participate in the sport he loved, playing at the Charles Schwab Challenge at Colonial, but had to withdraw during his second round due to illness. The devastating news of his passing was announced on Sunday, with the family revealing that he died by suicide.
The PGA Tour released a heartfelt statement on behalf of Eric and Terry Murray, Grayson’s parents. The Murrays expressed their gratitude towards the PGA Tour and the golf community for the outpouring of support they received. They concluded, “Life wasn’t always easy for Grayson, and although he took his own life, we know he rests peacefully now.” This tragic loss reminds us all of the importance of mental health and support in times of need. Grayson Murray’s legacy in the world of golf will continue to inspire many.
From the GBR community, we would also like to extend our condolences.
We hope we can bring better news next Monday.
Stay safe.