The events of May 30th may have been the biggest development in professional golf since the PGA TOUR formally broke away from the PGA of America in 1968. The PGA TOUR, The Public Investment Fund (‘PIF’), and the DP World Tour (‘DPWT’) signed a framework agreement to combine the golf-related commercial rights of the TOUR, DPWT, and PIF into a collectively owned, for-profit entity referred to as “NewCo” for now. Though this effectively ends golf’s civil war between the TOUR and the PIF-owned LIV Golf, many questions remain unanswered about the future of men’s professional golf

Despite the significant reaction so far, the deal has yet to be finalized as it faces regulatory scrutiny in addition to public controversy. On June 6th, the day the controversial agreement was revealed, publicity around PGA TOUR was over 37 times higher than the daily average in 2022 (per Meltwater).

As the first of potentially multiple Senate hearings approaches around NewCo, Navigate polled American golf fans to understand how the golf community feels about NewCo, what its golf engagement intentions are moving forward, and what these early results may indicate for corporate partners in golf across media, sponsorship, and more. We paid particularly close attention to how responses varied across generations.

 

Summary of Key Survey Takeaways
  1. The negative news headlines that followed the PGA TOUR, PIF, and DP World Tour announcement may not be consistent with overall American golf fan sentiment. Most PGA TOUR and DP World Tour fans saw the announcement in a positive light. Fans that saw it negatively are in the minority.

  2. Fear of plummeting golf viewership may be overstated. Over half of American golf fans do not plan on changing the amount of professional golf they watch while nearly a third intend to watch more. Just 1 in 7 fans plan on watching less or stopping altogether.

  3. The announcement is being perceived differently across generations. Moving forward, 18 – 34-year-old golf fans are much more likely than older cohorts to engage more with professional golf, see it as positive for the game, and view broadcasting partners of the new entity in a more positive light. However, sponsor perception is more inelastic among older fans.

 

Survey Takeaways in Detail
  1. The negative news headlines that followed the PGA TOUR, PIF, and DP World Tour announcement may not be consistent with overall American golf fan sentiment.
    • Most TOUR and DP World Tour fans saw the announcement in a positive light.
    • One-third of PGA TOUR and DP World Tour fans’ opinions of each tour didn’t change.
    • PGA TOUR and DP World Tour fans whose opinion soured are in the minority.

  2. Fear of plummeting golf viewership may be overstated
    • Over half of American golf fans do not plan on changing the amount of professional golf they watch. Nearly one-third say they will watch more!
    • Just over a tenth say they will watch less, and only 2% say they will stop watching altogether.
    • Nearly half of 18 – 34-year-old golf fans expect to watch more professional golf, compared to 11% among 55+ year-olds.

  3. The announcement is being perceived differently across generations.
    • 18 – 34-year-old golf fans are more likely to think positively of PGA TOUR broadcast partners, but view brand sponsors more negatively than other generations.
    • Fans 55+ are the most uncertain about the future of golf.

Burning Questions for the New Entity
  1. What will the product look like?

    Despite the leaks since the announcement and those that are likely to follow, we still have virtually no idea what professional golf will look like moving forward. What happens to LIV Golf? On one extreme, it could be dissolved and its members re-assigned to the PGA TOUR and DPWT. But that seems unlikely without some significant infusion of team golf.Conversely, team golf could become the core product and the entire professional golf ecosystem as we know it could be reshuffled.  While it’s likely that we end up with some compromise of the two, many fundamental questions of the product remain.

    • What will team golf’s role be?
      If the vision is to feature it as the pinnacle of professional golf, it wouldn’t make sense to place it as a series in the fall because that is when golf attention is typically at its lowest. However, it could also be difficult to find “natural” places to put it in the golf calendar as we know it today.
    • What will the eventual membership structure and bylaws look like?
      NewCo faces the challenge of bringing together a LIV Golf membership that is playing less golf than their PGA TOUR counterparts and a PGA TOUR + DPWT membership that has been scorned by LIV but is also looking to improve its lot in life. Additionally – do players end up all becoming employees like LIV or does the independent contractor status on Tour today hold?
    • What about special events such as the Ryder Cup, Presidents Cup, and World Cup of Golf?
      European Ryder Cups, the Presidents Cup, and the World Cup of Golf are now ostensibly under the NewCo umbrella. What kinds of possibilities does that offer? Is there finally an opportunity to marry team match play drama with international competition?

  2. What does the rest of the golf world do?

    Will the existing talent pipeline remain sufficient under the new arrangement? How will this impact the Korn Ferry Tour, the PGA TOUR’s 3 International Tours, the European Challenge Tour, Asian Tour, Asian Development Tour, and MENA Tours? What will the other 3 tours that form the International Federation of PGA Tours do? (Japan Golf Tour, PGA Tour of Australasia, and Sunshine Tour).What about leading women’s golf tours such as the LPGA Tour and LET?

  3. What should key partners such as sponsors, networks, and licensees think about?

    Based on the results of this (very early) survey, corporate partners of professional golf have reason to be bullish on their support of golf. For the most part, the American golf fanbase anticipates more inflationary effects on their golf engagement than deflationary in response to this development.Despite the positive survey results, corporate partners such as sponsors, media rights, and licensing partners do have some important areas to think about.

    • Near-term activation: How should partnerships be handled during this time when the future of the product is in question? What level of engagement makes sense to maintain a presence in golf yet not completely disconnect while the sport settles?
    • Generational differences: The stark difference in reception will challenge partners to captivate younger, more numerous fans while sustaining their aging, avid counterparts. Sponsors will be challenged to activate in more sophisticated manners while media partners will need to ensure their content is in the right places for the audiences of their rights.
    • Long-term strategy: How much benefit of the doubt should the PGA TOUR and new entity be given in consummating the partnership and enabling new opportunities? Should skeptical partners start reconsidering their investments now or later on?
  4. And perhaps most importantly…will this partnership be allowed to proceed?

    While the lawsuits have been dismissed with prejudice and it is presumably arms down for now, the parties still have to formally complete the agreement. Based on the Antitrust Division of the USDOJ’s track record through the Biden administration, it is fair to expect thorough scrutiny of the proposed partnership. Today’s hearing will bring some much needed clarity, although we’re unlikely to see full resolution for quite some time.

What’s Next?

Moving forward, we will continue to monitor fan sentiment around this deal and make recommendations to help our clients prepare for additional disruptions to the world of golf. As of now, it’s clear that despite the initial negative headlines, fan sentiment is split on the new golf entity, and that younger fans feel more positive about the agreement. This could provide an opportunity for brands looking to be assertive with their sponsorship dollars, although the situation is still precarious.

Questions about our survey, the future of professional golf, or what this might mean for your brand? Email Ron Li at Ron@NVGT.com.