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The PGA Tour Senate Hearing

Hey Nuts,

In case you missed it, below is a brief Washington Post summary of what the Saudi representatives proposed to the PGA Tour during their negotiations, followed by an article on today’s Senate hearing on the PGA Tour/PIF proposed agreement…

“PGA Tour officials defended their shocking partnership with the Saudi Public Investment Fund during a Senate investigative subcommittee hearing on Tuesday. But even as the hearing underscored the fragility of that relationship, a trove of documents released by the Senate Permanent Subcommittee on Investigations showed the parties discussing several dramatic proposals that would significantly alter the golf landscape.

Among the proposals that were floated: a global “World Golf Series” team event that would conclude in Saudi Arabia; LIV Golf continuing to operate as an independent tour with its schedule confined to the fall season; Greg Norman being sidelined and removed from his role as LIV Golf chief executive; Tiger Woods and Rory McIlroy being given ownership of LIV Golf teams and participating in LIV Golf events; two elevated PGA Tour events branded by either PIF or the Saudi oil company Aramco; and a membership to the Augusta National Golf Club for Yasir Al-Rumayyan, the governor of the PIF who is poised to be among the most powerful men in golf if the partnership is finalized.”

Here’s the full article:

PGA Tour defends Saudi deal in Senate as emails show plan’s origins

By Rick Maese, Washington Post

PGA Tour officials defended their shocking partnership with the Saudi Public Investment Fund during a Senate investigative subcommittee hearing on Tuesday. But even as the hearing underscored the fragility of that relationship, a trove of documents released by the Senate Permanent Subcommittee on Investigations showed the parties discussing several dramatic proposals that would significantly alter the golf landscape.

Among the proposals that were floated: a global “World Golf Series” team event that would conclude in Saudi Arabia; LIV Golf continuing to operate as an independent tour with its schedule confined to the fall season; Greg Norman being sidelined and removed from his role as LIV Golf chief executive; Tiger Woods and Rory McIlroy being given ownership of LIV Golf teams and participating in LIV Golf events; two elevated PGA Tour events branded by either PIF or the Saudi oil company Aramco; and a membership to the Augusta National Golf Club for Yasir Al-Rumayyan, the governor of the PIF who is poised to be among the most powerful men in golf if the partnership is finalized.

Tour executives made clear in the hearing that the two sides still have wrinkles to work out, including the fates of LIV Golf and Norman, and the exact size of the massive Saudi investment that tour officials say will help stabilize the fractured world of professional golf.

“There is no merger. There is no deal. There is simply an agreement to try to get to an agreement and settle lawsuits,” said Jimmy Dunne, the PGA Tour policy board member who helped broker the arrangement.

Dunne acknowledged that the parties did a poor job of explaining their deal, calling the initial rollout “very misleading and inaccurate.” While the two sides have until the end of the year to craft a final agreement and formalize the alliance, the documents released during the subcommittee’s hearing provide the fullest picture to date of what the key stakeholders hoped to get out of the partnership.

Sen. Richard Blumenthal (D-Conn.), chair of the subcommittee, was the most pointed lawmaker in his questioning of the PGA Tour representatives — Dunne and Ron Price, the tour’s chief operating officer — urging them “to avoid the sellout that this deal appears to be” and warning that accepting Saudi money could have unforeseen consequences.

The tour’s witnesses could not say how big the potential Saudi investment might amount to, but it would likely be “north of $1 billion,” Price said. Blumenthal warned that a billion dollars “is just the beginning.”

“Looking at it from the future standpoint, you’re not out of the woods,” he said toward the end of the nearly three-hour hearing. “They’re going to continue to have this kind of bucket full of money and they’re going to continue to wield the influence that they do … and whatever the good intention and rhetoric is now, you still have to reach a deal. My hope is that you will resist those buckets full of money.”

The tour officials noted that a final agreement is not imminent, and the two sides continue to negotiate. Dunne said the subcommittee’s probe is adding layers of complications to what is already a delicate negotiation process. “There’s an issue about sometimes too many cooks in the kitchen. Well, in this case, everyone in the world is in the kitchen. So it’s going to be difficult,” he said, “but we’re going to work hard at it.”

Sen. Ron Johnson (R-Wis.), the subcommittee’s ranking member, said the Senate probe is premature and the two sides should be allowed to hammer out the final details without lawmakers peering over their shoulders. He sympathized with the tour, saying it struck an agreement to stave off an existential threat, and the result, he said, was a deal that benefits both parties.

“For the time being, I would recommend we give these guys the space to negotiate something,” he said. “I think their motivations are pure. They’re trying to preserve this game, they’re trying to do right by their players, they’re trying to do right by this country. Give them give them the space to negotiate a deal. And then if we have a problem with it, we can come back and look at it later.”

As the hearing began, Blumenthal shared a 10-page summary document plus an additional 265 pages of supplementary emails, messages and other communications that were submitted to the subcommittee by the PGA Tour and LIV Golf in advance of the hearing. The documents provided new insight into the discussions that led to the tour and the Saudi PIF moving past their bitter differences and striking an alliance to unify professional golf under a single umbrella, with the goal of forming a new for-profit entity that would oversee the commercial interests of the PGA Tour, LIV Golf and the Europe-based DP World Tour.

The documents also show several iterations of the framework the two sides hammered out and seem to suggest that the parties are open to LIV Golf — the breakaway circuit that precipitated golf’s civil war — coexisting alongside the PGA Tour. The communications do not lay out parameters for the LIV golfers to return to the PGA Tour. One initial proposal noted that Al-Rumayyan recognizes “the merits of compensating those PGA players who have remained loyal to the Tour and he would undertake to establish a substantial Equalisation Fund for their benefit.”

Emails reveal that the first overture was made to the tour by an intermediary, Roger Devlin, a successful British businessman who reached out to Dunne last December. He wrote: “While the parties may appear far apart right now I do believe there is a common desire among the leading players and shared by His Excellency [Al-Rumayyan] to bring the sport back together in time to impact the 2024 schedule.”

According to the documents, the two sides didn’t meet in person until an April introduction in London, followed by meeting in Venice on May 11. They met again at the end of May in San Francisco, where the basic framework was agreed to and signed.

In the interim, they batted proposals back and forth. On April 26, the Saudi representatives shared a slide show, titled “The Best of Both Worlds,” in which they proposed Woods and McIlroy’s involvement with LIV. And in May, the two sides exchanged language that would oust both Norman and Performance54, the golf management company that helps run LIV, from all operations.

None of that was included in the basic agreement that was signed May 30. It was not clear from the documents if any of those proposals are still under consideration by the PGA Tour and the PIF. Two people familiar with the negotiations said that PIF officials rejected the proposal to remove Norman.

Price made clear to the subcommittee Tuesday that because the PGA Tour would manage any potential LIV Golf events, “it would make no sense” to have Norman leading LIV.

“If we reach a definitive agreement, we would not have a requirement for that type of position,” Price said.

The subcommittee’s probe is one of two congressional inquiries into the deal, and lawmakers say public pressure can influence how the tour and PIF proceed. Even if the tour’s policy board signs off on a final agreement, the Department of Justice could nullify it if it finds the agreement violates federal antitrust laws.

“The regulators are certainly taking a look at it,” Price told the subcommittee. “We believe it should not violate the antitrust rules, but we intend to fully cooperate with that investigation.”

Price and Dunne repeatedly told lawmakers that the tour isn’t simply turning over control of professional golf to a foreign entity.

“We do not have an agreement now. We only have a framework agreement. We will not move to a definitive agreement unless the PGA Tour is in complete control of the new entity,” Price said, “which will be a PGA Tour subsidiary controlled by the PGA Tour board and operated for the benefit of all of our constituents, our players, our fans, our sponsors and our charity. If that’s not where we end up, we will not even recommend approval.”

Blumenthal pushed back on the tour executives, saying the PIF money inherently gives control to the Saudis.

“There is something that stinks about this path that you’re on right now,” he said, “because it is a surrender and it is all about the money. And that’s the reason for the backlash that you’ve seen. The equity ownership interest that the Saudis will have — and that’s a term from this agreement — gives them financial dominance. They control the purse strings.”

While the basic framework between the parties is vague on the future of LIV Golf, that topic merited plenty of discussion during negotiations, according to the documents released on Tuesday. On May 15, Ed Herlihy, chair of the tour’s policy board, said in an email to Dunne that he’d “raised the idea” to Jay Monahan, the tour commissioner, “of you overseeing LIV going forward. He really liked it.” Dunne replied to Herlihy, “You and me.”

And Price sent Monahan talking points on May 28 to address some lingering PIF concerns, including the future of LIV. Price pointed out that “LIV Golf is important to PIF, but PIF, as a minority owner, has no decision-making authority … with respect to LIV’s future.” He noted that the PGA Tour would effectively be majority owners of LIV and the breakaway circuit’s fate would ultimately be determined by the executive board of the new for-profit company — “where PIF has a strong influence.”

The documents reveal deliberations on how to announce the deal — including planned phone calls to Woods and McIlroy — which underscored the secrecy behind the negotiations. Michael Klein, a New York banker and longtime PIF adviser, suggested announcing the news in a “brief, softball segment” with CNBC, as Monahan and Al-Rumayyan did on June 6.

“The worst thing we can do is have naysayers lead the chorus,” Klein wrote in an email to Dunne.

Since announcing the partnership, the PGA Tour has received pushback from several directions. Tour players said they were blindsided and lawmakers have promised to probe the genesis of the deal while scrutinizing the tour’s tax-exempt status. Al-Rumayyan missed the hearing, citing a scheduling conflict, which left the tour officials to address lawmakers’ concerns over Saudi Arabia’s alleged human rights abuses. Seated in the gallery were the families of Sept. 11 victims, who have expressed outrage over the tour’s about-face and surprising alliance with the Saudis.

The tour long had reservations about the Saudi threat, and the subcommittee’s report includes a February 2022 email from Norman to Monahan, in which Norman chastises the PGA Tour for threatening bans on players who try to play for LIV.

“Players have the right and the freedom to play where we like,” Norman wrote. “I know for a fact that many PGA players were and still are interested in playing for a new league, in addition to playing for the Tour. What is wrong with that?”

He closed the email by warning Monahan, “this is just the beginning. It certainly is not the end.”

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It’s anyone’s guess at this point, but my guess is that the partnership will end up being approved by all parties including the DoJ, Congress, PGA Tour Policy Board, and the players, and in my humble opinion, worldwide professional golf will never be the same again. 

As always, I welcome your opinions and will be happy to share them with your fellow Nuts.

The Head Nut

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What’s So Special About This Tree?

Answer…

It’s dedicated to Bob Clark, a beloved eight-year member of the course.

“And how did The Head Nut learn of this memorial of Bob Clark?” you might ask.

Answer: I hit my tee shot behind the tree and right on top of the memorial. I got a free drop. It’s a local rule.

Now, that’s what I call an appropriate memorial to a golfer!

The Head Nut

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MY DAY AT THE MASTERS – Jim Whittemore (Nut #1746)

Hey Nuts, this is without a doubt, one of my all-time favorite stories about one of your peers. Enjoy! – The Head Nut

When I got a last minute call from Dave Lobeck, President & COO of Fuzzy Zoeller Productions, inviting me to the 2000 Masters I shook it off as being too last minute, can’t do it, got too much on my plate and every other excuse I could think of. The guilt pangs lasted for about three minutes. I called him back and said O.K., I’m there. Dave’s response was, “Get your ass to Louisville Sunday and we’ll fly down on Bogie Bird.”

How good was this?  Three days at the Masters with Fuzzy, who I had befriended sixteen years ago as his host at The Fred Meyer Challenge Pro-Am at Astoria Country Club. Dave and I had become good friends since the day he started running Fuzzy’s company.

Since that summer of ’86, suffice it to say that Fuzzy and I have shared a lot of laughs, a few tears, and a gentlemanly amount of barleycorn. He has been there for me throughout Amateur qualifiers, (“Quit lookin’ at the scoreboard, Whittemore.”) and proudly, I for him. A great friendship has endured through it all.

My brother-in-law, Craig Honeyman, and I took the red-eye to Louisville via DFW and checked into a downtown hotel to freshen up and grab a bite to eat. Lobeck picked us up and 10 minutes later we were loading luggage on Bogey Bird.

We were met at the airport and taken to the course to pick up Fuzzy’s courtesy car. Augusta National met us with a larger than normal vehicle to stop by the course (notice how natural this is sounding) and pick up our courtesy car. Fuzzy knows I am in seventh heaven and asks the driver to take us down Magnolia Lane, not the back entrance. I’ve died and gone to heaven. This is it. The Holy Grail.

We pick up the car, get settled in at the house, and then head to T-Bones for dinner. I couldn’t pay the check fast enough. Traveling with Fuzzy, you’ve got to stay a step ahead. His generosity has no limits. I gave my credit card to the hostess when we arrived and I told her in no uncertain terms, I am buying dinner. A twenty-dollar bill sealed the deal.

The next day, Monday, I got my first look at the Shrine. But Fuzzy, as usual, had something up his sleeve. As we were walking toward the front door of the clubhouse, Fuzzy said, “Hey Whitts, come with me. Guys, we’ll see you in a bit”.

I have no idea where we’re going. Then he asked, “Want some breakfast?”  

“Sure,” I said or some other unintelligible acknowledgement. Next thing I know he was leading me upstairs to the Champions locker room. We sat down with Craig Stadler and his brother and had a very relaxing 45-minute breakfast. We didn’t talk golf, but bird hunting. What else do you talk about with two Masters Champions in the most exclusive locker room in the world?  Made sense to me.  Of course, I ordered basted eggs, which according to Brandel Chamblee are the specialty of the house. And that they were.

Magnolia Lane. Champions Locker Room. The inside of the Clubhouse, for God’s sake. And I still hadn’t seen the golf course. We finished breakfast, Fuzzy signed a few flags, changed his shoes and we headed to the practice tee.

How’s my day going?

I was determined to photograph every hole at Augusta. Eighty exposures later, mission accomplished. The galleries – excuse me, the patrons–at Augusta are the kindest, most polite and knowledgeable anywhere. I have managed my share of professional golf tournaments and these are the most gracious people I have ever met. Many times throughout the day I would ask to get a shot, and these people would part the waters, especially when they found out it was my first visit to Augusta.

As we were making the turn, I heard Fuzzy on the 10th tee yell to Lobeck. “Where’s Whittemore? Make sure he goes down the right side of the fairway, not the left”.

The previous night Fuzzy remarked that the 10th at Augusta is the most beautiful hole in golf. And he played it like he loves it. He blew his tee shot past Herron, Huston and Daly. Not bad for an ol’ man.

Television does not do it justice. It is that spectacular.  A huge golf hole.  Honeyman and I made our way down 10, over the hill on 11 and finally to the 12th tee. I could not believe the amount of ground this little par-3 consumed. The expanse of land at Augusta is still hard to fathom, but the 12th  hole is one of the biggest par-3s in the world.

Bleachers and grass seating can accommodate more than 10,000 patrons; on a Par 3 no less. Absolutely breathtaking. As the group leisurely made its way over from the 11th green I was frantically taking pictures of the 12th hole. Long lens, wide angle, the whole thing.

Then I got a shot of Fuzzy walking up to the tee. How he picked me out of 10,000 people, I’ll never know.

I finally heard,  “Hey Whittemore get down here.”

I froze. This isn’t happening. I motion to Fuzzy and sort of wave him off and move back up to my seat on the grass. He calls out again and then the crowd gets into it. They were egging me on. No choice. I moved through the crowd, down the bank and under the ropes.  Fuzzy bent over and teed up a ball. “OK, pardsie, let’s see what you got.”

This is perfect. I’ve been challenged by the “master” to tee it up in front of 10,000 people on the hardest par-3 in all of golf. The shakes begin. And then I don’t know what took over. Was it divine intervention, or Mom and Dad looking down from their celestial balcony? I calmly walked over to his bag, pulled out a 7-iron and started making practice swings. Then I had the gall to pull his glove out of his back pocket and put it on. Why not?

Bernhard Langer was up on the green practicing for what seemed like an eternity. Fuzzy was motioning to the crowd, pointing to the right with a slow waving motion. All the while, a guy in the crowd was capturing everything on video. Yes, this entire slow motion, out of body experience was being permanently recorded.

Finally, Langer finished and Fuzzy stepped back. In his loudest voice announces: “Ladies and gentlemen, from Portland, Oregon, Jim Whittemore”.  Herron, Huston and Daly couldn’t believe their eyes.

I had taken a few practice swings and was now really concerned if I could even get it airborne. Then it started. My hands started shaking. And I mean shaking.  They were shaking so bad I heard Fuzzy’s caddie clearly say, “My God.  Look at that.  He can’t take it back.”

And at that moment, somehow I got the club back, hit it as hard as I could and actually walked through the shot. It got it airborne all right, and I heard a bit of crowd swell behind me. The ball was in the air and actually heading for the green. The crowd was on its feet and starting to cheer as it came down. The ball landed on the green about 20 feet from the hole. And there was no other way to say it. They went wild. They told me later it was the loudest cheer of the day.

Fuzzy clapped, threw his head back and laughed that hearty laugh. Huston came over and gave me a hug. And there was Daly with the high fives and the biggest grin since Crooked Stick. Eric, Fuzzy’s caddy, wrapped his arms around me and had to help me take the glove off; my hands were shaking so bad. Fuzzy gave me a kick in the pants and I headed back to my seat.

The rest of the day was a blur. The congratulations and “attaboys” were non-stop. People being so nice, saying hello, shaking my hand, even taking pictures. And it was all for one swing on the greatest hole in golf.

When the day was over. We headed home and changed for dinner. As we loaded up in the courtesy car, Phil Lobeck, Dave’s brother, came around to the side door and saw me sitting by the window. Even though I was still in a fog, nobody ever wants to sit in the middle seat, right?  He gave me one look and said, “Move over dammit. You’ve had a pretty good day.”  I gladly sat in the middle. I played the 12th hole at Augusta.

Thanks, Fuz.

For my money, that is one of the greatest moments in amateur golf history. And I mean it. I’m not talking about the “professional amateurs”, but real amateurs. Guys like you and me who work for a living and play golf for the love of the game. If you’d like to see the video of this historic moment, CLICK HERE.

The Head Nut

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Welcome, Nut #4102!

Certified Golf Nut #4102 Gary McDonald proudly displays his Golf Nut Society bag tag alongside that other famous logo – The Masters – and the bag tag of a course yours truly has also played: Old Works. It’s a Jack Nicklaus Signature course in Anaconda, Montana. If you’re ever in Montana, it’s a “must play” track. Here’s a photo…

Yep, it’s the one with black sand that is built on a Superfund reclamation site, the former Anaconda Copper Works. The black sand is actually silica from the mining process, and is quite good to hit out of, and a nice “signature” for the course. Old Works is one of the best public courses in America.

The Head Nut

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