OPINION:
(Corrected headline to read PGA Tour, not PGA)
The decision by Saudi-owned LIV Golf to merge with the Professional Golfers’ Association of America Tour should be welcomed by anyone interested in the game.
In fact, President Biden’s Justice Department and members of Congress should support this move by Saudi Arabia’s $700 billion Public Investment Fund, or PIF, to invest in American golf because, at its core, it democratizes wealth creation for hundreds of golfers in the U.S. who are not Tiger Woods.
Sadly, some key members of Congress, such as Sen. Richard Blumenthal, Connecticut Democrat, have decided to attack Saudi Arabia’s sovereign wealth fund for investing in American golf, citing concerns about the Middle Eastern country’s adherence to human rights. It is unclear whether this decision by Mr. Blumenthal is a way to divert attention away from rising crime in Connecticut, a public school system that is failing minority communities in the state, or simply an ingrained bias against the free flow of capital.
In 2021, Mr. Blumenthal attended an event celebrating the Connecticut branch of the Communist Party USA. A career politician of Mr. Blumenthal’s stature should certainly be able to rethink his view of Saudi-owned LIV Golf.
A number of tangible benefits will come as a result of Saudi Arabia’s PIF investment in the game of golf in America.
First, this investment will allow any American who wants to play professional golf to earn a living wage and thus provide a safety net for his family. This is a far cry from the current system, in which players are at the mercy of PGA-dominated tournaments, and their wages are tied to whether or not they can qualify for any given tournament.
Second, since the governor of Saudi PIF, Yasir al-Rumayyan, is an avid golfer, expect his massive investment in American golf to trickle down to every part of the country, thus allowing young golfers who dream of becoming the next Tiger Woods or Greg Norman to realize their ambitions.
Third, one of the big attractions for players who sign up with the LIV Golf Tour is that, unlike the PGA Tour, even finishing last in a single event could guarantee them as much as $120,000. Again, this is in sharp contrast to the historically opaque and monopolistic setup of the PGA, where missing the cut at a PGA Tour event ensures that a player goes home with nothing.
Finally, expect LIV Golf to become a leader in “safe community golf zones” whereby America’s at-risk youth can learn to play golf in their own neighborhoods. This will be a prelude to nationwide LIV Golf tournaments for young people.
The proof that Saudi PIF’s investment strategy does produce positive results is evident when one looks at the transition of U.K.-based Newcastle United, a soccer club from the northeast of England. Before Saudi PIF’s capital injection, Newcastle struggled to stay in the Premier League, home to powerhouse clubs such as Manchester United and Chelsea.
Since the investment from Saudi Arabia in October 2021, Newcastle has seen its fortunes rise. Last year, it finished in the top four spot of the Premier League.
The visionary behind Saudi PIF’s bold investment strategy is Crown Prince Mohammed bin Salman, who wants to use his country’s oil wealth to diversify the Saudi economy away from oil and accelerate its growth to a point where by 2030, it joins the ranks of countries with a $1 trillion gross domestic product.
Through Saudi PIF’s creative investing strategy, this young leader is also on a mission to democratize wealth creation for his countrymen and others across the globe, including Americans. Investments by Saudi Arabia’s PIF into America’s small, medium-size and large businesses help provide the necessary capital for these companies to innovate and scale.
For example, the next breakthrough in artificial intelligence applications for health care may very well be an investment by Saudi Arabia into an early-stage U.S. company. It should be noted that under the crown prince’s guidance, Saudi PIF has created over 560,000 jobs and helped launch 85 companies in 13 sectors across the globe, including here in the United States.
It may be time for Mr. Blumenthal and Saudi Arabia’s other detractors on Capitol Hill to consider another approach toward the kingdom’s U.S.-centric investment strategy. Instead of inviting Mr. Al-Rumayyan to testify about the potential merger between LIV Golf and the PGA Tour, Mr. Blumenthal should host a dinner in his honor.
Mr. Rumayyan would be open to Mr. Blumenthal’s request to include the iconic American brand GE in Saudi Arabia’s multibillion-dollar renewable energy push. Or maybe he can invite Mr. Rumayyan to sign an agreement with Yale University’s School of Forestry to realize the crown prince’s vision to plant billions of trees in the kingdom.
America’s wise and highly decorated 34th president, Dwight Eisenhower, saw golf as a way to foster goodwill and understanding among nations. It is time for our current leaders to adopt Eisenhower’s legacy and support Saudi Arabia’s investment in American golf and beyond.
• Rob Sobhani is an adjunct professor at Georgetown University.
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