"I don't want to hurt Jay" - Endeavor CEO opens up on considering $1 billion investment in LIV Golf and why it was dropped

Ari Emanuel, the CEO of Endeavor, recently shared insights into the company's consideration of a substantial $1 billion investment in LIV Golf. In a podcast interview with Freakonomics Radio, Emanuel discussed the approach made by golfers Phil Mickelson and Bryson DeChambeau, revealing how internal discussions within Endeavor led to the proposed investment.

However, due to Endeavor's close ties with professional golf and Emanuel's friendship with PGA Tour commissioner Jay Monahan, the plans were ultimately abandoned.

This article delves into the details of the potential investment and the factors that led to its dismissal.

The role of Endeavor's ties and concerns for Jay Monahan

Endeavor boasts extensive connections within professional golf, and Ari Emanuel's friendship with PGA Tour commissioner Jay Monahan played a pivotal role in the decision-making process. Emanuel explained that the PGA Tour expressed its reservations about the investment, requesting Endeavor not to proceed.

In light of his friendship and existing business partnerships with Monahan, Emanuel chose to prioritize their relationship and respect the PGA Tour's concerns. He emphasized:

“We’re all connected in golf,” Emanuel said. “And (the PGA Tour) said, ‘Please don’t do it.’ So we stopped. I’m friends with Jay. We have a lot of business with Jay. I don’t want to hurt Jay.”

Furthermore, the PGA Tour faced economic implications due to LIV Golf's antitrust lawsuit against them, coupled with an investigation by the U.S. Department of Justice regarding potential anticompetitive actions involving LIV.

Emanuel informed Monahan about Endeavor's withdrawal, urging him to find an economic solution. Monahan, displaying commendable leadership, addressed the challenges and navigated the situation successfully.

The proposed investment in LIV Golf

Endeavor, the parent company of renowned entities such as UFC, IMG, and WME, explored the idea of investing $1 billion in LIV Golf. The golfers' approach sparked internal discussions, indicating the potential interest in supporting the venture. LIV Golf, which is currently financed by Saudi Arabia's Public Investment Fund (PIF), attracted attention for its controversial associations.

“I said to Jay, ‘We’re pulling out. But you have got to figure out an economic solution here because … it’s going to force you,’” Emanuel continued. “And he did. To his credit, I think Jay did an incredible job.”

Controversies surrounding LIV Golf

LIV Golf's association with Saudi Arabia's PIF has drawn widespread criticism. There have been allegations that the venture serves as a tool for sportswashing—a tactic employed to improve a country's image through sport—while diverting attention from severe human rights violations.

Ari Emanuel, however, dismissed concerns regarding sportswashing. He stated that he hadn't deeply considered the matter, citing his busy schedule:

“I haven’t really thought about it. I have enough on my plate,” he said. “They’re doing what they’re doing.”

Emanuel shared his positive impression of Saudi Arabia's Crown Prince Mohammed bin Salman, whom he described as charming and visionary during a meeting to discuss a deal. However, he promptly clarified that his comments were not intended as a defense of their actions.

The potential $1 billion investment by Endeavor in LIV Golf shed light on the intricate dynamics between business interests and personal relationships within the golf industry. The close ties between Endeavor and professional golf, combined with Ari Emanuel's friendship with Jay Monahan, ultimately led to the investment plans being abandoned.

The controversies surrounding LIV Golf further impacted the decision-making process. As the golfing world continues to navigate these complex issues, the episode serves as a reminder of the delicate balance between business opportunities and ethical considerations in the sports industry.

Edited by Sudeshna Banerjee