Two companies contending that the LIV Golf League essentially stole their ideas in the buildup to starting the Saudi Arabia-backed circuit are now suing for damages.
As reported by ESPN, lawyers for English companies World Golf Group (WGG) and Premier Golf League (PGL) are seeking damages of between $210 million and $630 million from LIV Golf, Saudi Arabia’s Public Investment Fund (PIF) and other individuals and entities, accusing them of breach of confidence and unlawful means conspiracy.
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ESPN said it obtained records for the case that were filed in Commercial Court in London in April, adding that the records have not been made public, but were verified by two sources as being authentic.
The individuals named in the lawsuit include former WGG founders Richard Marsh and Jed Moore, who are accused of breach of fiduciary duty for helping PIF launch LIV Golf in June 2022.
“The Claimants conceived the idea for a new golf league called the Premier Golf League,” the complaint says, according to ESPN. “Over the course of several years, the Claimants refined the format of this league and produced business plans, contracts, financial models and other intellectual property belonging to the Claimants, which provided the blueprint for its launch and success.
“The Defendants conspired together to use the Claimants’ confidential information without the permission of the Claimants to launch the LIV Golf League.”
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ESPN reported that LIV Golf did not return a request for comment.
Calling LIV Golf a “bald facsimile of the PGL,” the suit alleges that PGL’s leadership first conceived of shotgun starts, 54-hole events (changed this year to 72 holes), individual and team competitions played simultaneously, knockout rounds in team championships and franchises with four golfers, including a captain.
The complaint contends that the concept of a world golf league was hatched in 2009 by Andy Gardiner, who later enlisted Richard Marsh as a consultant in 2016. More partners came on board, with ultimately 30 founders of the World Golf Group in 2018.
Then in 2019, while the WGG worked on securing financing, the plaintiffs allege that Gardiner and Moore met with PIF Governor Yasir Al-Rumayyan about the Saudis potentially investing in PGL. Moore already had been in contact with Golf Saudi CEO Majed Al Sorour, and the suit alleges that Al Sorour and PIF representatives were later given access to online data that allowed them to view business plans, promotional materials, financial models and potential golfer contracts.
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According to the lawsuit, PGL secured $1 billion in shares from Raine Mulligan Co. in late 2019 and PIF agreed to put in $490 million, with the requirement that the league sign top-level players who were members of the PGA Tour at the time. The plaintiffs say there were discussions with major winners and their agents, including Phil Mickelson, Justin Rose, Patrick Reed and Adam Scott. Eleven players were allegedly offered contracts in June 2020.
“The Claimants, PIF, Golf Saudi and Raine became aware, however, that the players were reluctant to sign,” the lawsuit said. “This was due to the following: first, threats made by the PGA Tour that players participating in the PGL would be banned; and second, players’ concerns that participation in the PGL would not earn them Official World Golf Ranking points.”
The lawsuit alleges that PGL, seeking another circuit on which its players could compete, made overtures to create a partnership with the DP World Tour, but the European tour ultimately joined the PGA Tour in a “strategic partnership.”
ESPN reported that the plaintiffs say that’s when the PIF became interested in buying the PGL, rather than being minority investors. The suit alleges that the PIF offered Gardiner and Marsh positions within the league, and it was Marsh who eventually resigned from the PGL and joined the Saudis in May 2021.
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With Greg Norman as its CEO, LIV Golf used massive, front-loaded contracts to successfully recruit Mickelson, Dustin Johnson, Brooks Koepka, Jon Rahm and Bryson DeChambeau. The first tournament was played in June 2022 and there were four full seasons contested before cracks in the business model began to show this year. The PIF had invested more than $5 billion, and after much speculation about the league’s future, the Saudis announced that they would no longer fund the tour beyond 2026.
Rahm, Johnson, DeChambeau and Mickelson (who has played in only one event his year) remain with LIV Golf, but their future is uncertain, with LIV CEO Scott O’Neil tasked with raising $300 million to keep the league alive for 2027.
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