WILMINGTON, Delaware (AP) — A draft contract for Saudi Arabia-funded LIV Golf includes clauses that require players to be available to recruit other players for the league and obtain permission before granting exclusive interviews, reported the Wall Street Journal on Wednesday.
The Journal said it reviewed a draft contract offered to players by LIV Golf and found it was unclear whether the terms of the draft were included in all contracts or could be negotiated.
Among other things, the draft contract included approval for most of the logos they carry and branded products they use at events.
Meanwhile, Greg Norman, CEO of LIV Golf, sent a letter to players and agents outlining why the league should earn points in the official world golf rankings.
“Not only is this in the best interests of LIV Golf, but it is also necessary to maintain the integrity, accuracy and fairness of the rankings,” wrote Norman.
Noting that the application was filed on July 6 and that new tours must demonstrate they are in compliance with OWGR guidelines for one year, he urges the OWGR to “take comfort” in the status of LIV Golf. Norman said neither LIV Golf nor the Asian Tour had heard from the ranking officials.
The draft contract reviewed by the Journal did not include signing bonuses, although the newspaper said one detail was a $1 million bonus for winning a major championship.
“LIV Golf, as a start-up, prides itself on being able to offer our golfers competitive contracts,” an LIV spokesman said in a statement to the Journal. “Our future is bright and we continue to be delighted with the response from players and fans.”
The opposing league, managed by Norman and backed by the Saudi Arabian sovereign wealth fund, has hosted three events this year. The next is scheduled for September 2-4 outside of Boston.
LIV Golf has already attracted 10 players in the top 50 in the world rankings with Dustin Johnson being the highest at number 21. The PGA Tour suspended them — some players quit — after playing an event for not having a conflicting event release.
The story goes on
Last week, a federal judge in California denied the motions of three LIV golfers who sought an injunction to complete the tour’s lucrative postseason.
US District Judge Beth Labson Freeman had copies of the LIV contracts signed by Talor Gooch, Hudson Swafford and Matt Jones. Only outside attorneys and the judge—not PGA Tour attorneys—were allowed to see them, and the PGA Tour’s outside attorney had to be careful not to disclose financial information in his arguments.
But at one point in the hearing, when it came to conflicting events and media rights disclosures, Freeman noted of LIV Golf, “But as far as I understand these contracts, these are — these contracts lock down these players in a way that the PGA Tour.” never thought. They’re so restrictive.”
LIV Golf’s attorney replied, “I find that unfair, Your Honor.”
The Journal said the attire requirements were noted “on multiple occasions” in the draft contract it reviewed, and that players may wear only appropriate “team attire” during any LIV activity or “any other covered golf activity.”
A component of the LIV Golf Invitational events are 12 four-man teams competing for $5 million in addition to the $20 million individual results prize fund.
“The player agrees to wear the LIV Golf mark (or other mark provided by the league operator) at each tournament and any other golf tournament that you participate in anywhere in the world,” it reads.
The Journal quoted a person familiar with LIV thinking as saying this clause is geared towards next year when the 12 teams for the year are determined.
It cited another provision that required players to agree not to provide “exclusive interviews or commentary” relating to events or league activities without authorization.
The draft contract also states that the players agree to “assist the league operator, upon request, in persuading players to enter into multi-year player participation agreements with the league operator.”
The newspaper said the draft contract shows players largely opting out of their media rights from LIV events, similar to the PGA Tour’s regulations.
It also states that LIV golfers can play anywhere in the world provided it is not the same week as a LIV golf event. Graeme McDowell of Northern Ireland missed the Irish Open this year because it was the same week as the LIV Golf Invitational-Portland.
On the PGA Tour, players are typically given three conflicting event clearances provided they meet their commitments to play 15 times per season on the PGA Tour.
Norman’s letter to the world rankings argued that the second LIV event in Portland based on the OWGR formula had a stronger field than the PGA Tour (John Deere Classic) and that two events that week had a stronger field than three European- tour events.
“While there is no definitive timeframe for OWGR’s response, rest assured that we will continue to do everything we can to advocate for a positive response and, given the importance of OWGR, clarity for each of you as soon as possible.” to create not only for your suitability for the majors, but also for their relevance to many of your personal endorsements and commercial partnerships,” he said.
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