What Greg Norman’s scary words mean about LIV TV contracts

As head of LIV Golf, it’s Greg Norman’s job to understand the business of the league.

And because Greg Norman understands the LIV business, he knows there’s a big roadblock still in the league’s way.

TV set.

The problem isn’t so much that LIV exists disinterested on golf television. On the contrary – the league poured millions into production facilities and hired an army of technicians and producers to work on the project to deliver a consistent, high-quality product. Rather, the problem is the other way around: golf television isn’t interested in LIV. And in conversation no Sports Illustrated this week examining the state of the fledgling division, Norman was unusually blunt in admitting LIV’s failure to deliver a high-quality TV deal.

“Where we go astray is because of the awakening of the heart for not finding a network [TV] a deal,” Norman said with a frown. “That creates uncertainty in the markets. [A lot of companies say] let’s see what happens. That results in sponsorship. We have a large number of large companies that are talking to us and would very much like to come. “

Welcome back to Hot mic, GOLF’s vertical covers all things golf media. Today we’re talking about the latest word from Greg Norman on LIV’s TV rights — but if you’d like to get news like this straight to your inbox before it hits the web, we’d love it if you subscribed Hot Mic Newsletthere.

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First, let’s review how we got to this point: LIV has been around for three years. Of those three years, two seasons were televised with a near-revenue deal on the CW Network, while one season was aired for free with an even lower revenue deal on YouTube. LIV’s deal with the CW promised a share of the money, but LIV’s broadcasts consistently failed to reach the golf TV audience, meaning the league failed to receive a small amount of money from the CW.

Broadcast TV is the backbone of the sports business — the well from which all money-making sports organizations drink. If those who want to “get into” the sports business want to survive – be it LIV, TGL, or USFL – they must find a strategy to 1. get on TV and 2. attract large and repeat television audiences to watch. see.

The reason for this is simple: The networks pay the leagues, and the advertisers pay the networks. Aside from the revenue from the ads, there is no business case for a network to pay a sports league for its broadcast rights. Stated even more simply: audience interest it’s the most important commodity in sports television, and right now, LIV doesn’t have it.

In a way, however, the problem also works in reverse: without the help of a high-quality TV network, LIV may not be able to increase the interest of viewers. At least that’s what Norman seems to be referring to in his latest comment SI. The issue isn’t that LIV doesn’t have interested sponsors, Norman seems to be saying, it’s that LIV’s interested sponsors don’t want to help bankroll a product they don’t care to watch. But if LIV was worth it change viewer interest – perhaps in opposition to a new TV contract with one of the biggest networks in the world of sports – that may be enough to attract a number of new business partners to spend money on LIV.

And what is LIV trying to do in this crucial season? Surprise, surprise – got a new TV deal after the league’s deal with the CW expired at the end of the ’24 season.

“Also, the question is: What will happen to [new TV] A deal?” said Norman. “Whether it happens or not it will make the market comfortable. If we know what we are going to do and the market will be able to navigate the situation. But storms continue from the point of view of planning and space.”

Of course, it’s hard to take Norman entirely at his word. This is the league commissioner who boasted of having several “big” TV partners interested back in ’21, and who has repeatedly fanned the flames of speculation about the league’s operations in ways that often fail to achieve success.

But it’s not hard to believe how the new TV deal could improve LIV’s business image. An agreement with companies such as FOX or Warner Bros. Discovery (the two networks that do not have PGA Tour contracts) could bring endorsements and promotions to LIV’s broadcasts in a way that an extension of the league’s current deal with The CW could. That could encourage a flood of regular FOX or WBD advertisers to enter serious business with LIV, or encourage current LIV “interest groups” to become full sponsors.

It’s too early to tell if any of this will happen, but LIV’s chances look better in ’24 than in ’21. The league has retained powerhouse talent agency CAA, a longtime partner of the PGA Tour, to represent it in TV partnership negotiations — and is in talks to regroup with the PGA Tour to play before its network partners as a sign of its partnership. staying power.

Much is riding on LIV’s negotiating skills in the coming months and years, and commissioner Norman knows this. His contract expires at the end of next season, and the TV deal will go a long way in cementing his legacy as the league’s number one leader.

In other words, now is the time for Norman to be optimistic, and make sure he is.

“I’m just talking about LIV; be true to ourselves and our business model,” said Norman. “I tried to take the high road. We knew what we had and what we were doing was right. Time and patience is our great partner … 36 tournaments (in three years) is nothing. The PGA Tour has been in existence for 56 years. And we did it in three years. That’s why I hope to look to the future and where we will be in 10 years.”