REVEALED: 'Crazy' details emerge of big-money LIV Golf contracts
Court documents have revealed certain restrictions included in the contracts LIV Golf League players such as Phil Mickelson and Dustin Johnson have signed.
There was a flurry of activity last week in the LIV Golf League v. PGA Tour court battle.
To fill you in, the first piece of news came when judge Susan van Keulen denied LIV Golf's motion to quash the PGA Tour's subpoena requests for Saudi Arabia's Public Investment Fund (PIF) and its governor Yasir Al-Rumayyan.
LIV had relied on the Foreign Sovereign Immunities Act in order to try and dodge legal probes.
Related: Sir Nick Faldo tears into Sergio Garcia
Attorneys for the breakaway tour had also previously argued the PIF and Al-Rumayyan played limited roles in LIV Golf.
But in her ruling, the judge wrote it was plain PIF is not a 'mere investor in LIV', adding:
PIF and Al-Rummayan are expected to petition another judge, Beth Freeman, to review the order.
Some legal experts have claimed if the order is upheld the decision could be the death knell in their legal tussle with the PGA.
The second piece of news came in the form of the aforementioned Freeman declining the PGA Tour's request to delay proceedings.
Freeman ordered the antitrust case between the PGA and LIV to move ahead as planned. That case is scheduled for trial in January 2024.
PGA Tour attorneys had argued that trial date was untenable given how complex the case has become.
What about LIV Golf contracts?
Freeman also decided to unseal and make public certain LIV documents and materials in order to justify her decision.
Some of those documents relate to the contracts LIV players have signed.
We know now that Phil Mickelson signed a $200m deal. Dustin Johnson is said to have commanded $125m.
But what are they giving away?
@JohnNucci has sifted through those filings and has posted a thread of certain restrictions in their contracts.
See the thread here:
A thread of restrictions included in certain LIV golfers’ contracts, according to recent court filings. pic.twitter.com/ZjvRusppZf
— John Nucci (@JNucci23) February 25, 2023
1. Players must play in every LIV event as a fundamental condition of their contract, and LIV retains "sole discretion" in the number, location, or dates of events.
LIV has already exercised that discretion to increase the # of events from 8 to 14, not including the 4 majors.
— John Nucci (@JNucci23) February 25, 2023
2. Players grant LIV an *exclusive*, perpetual, royalty-free, worldwide, irrevocable license to exhibit, exploit […] and otherwise use players’ identification in connection with any promo activities, apparel, and all content created by LIV during the term of their contracts.
— John Nucci (@JNucci23) February 25, 2023
3. Players must wear LIV team apparel in LIV events, non-LIV tournaments, and other events in which they must participate.
— John Nucci (@JNucci23) February 25, 2023
4. Players must agree they will not enter into any "conflicting contract.”
Although not directly on point, this one is particularly interesting given that the PGA Tour’s competing event policy is the foundation of LIV’s antitrust claims.
— John Nucci (@JNucci23) February 25, 2023
5. Players are required to use their social media platforms to promote LIV.
— John Nucci (@JNucci23) February 25, 2023
6. Players are obligated to make required appearances including multiple sponsorship activations, receptions, meet and greets, and appearances at each team's draft event.
— John Nucci (@JNucci23) February 25, 2023
7. Players must lend their likenesses to content creation, including photoshoots/video content, participate in a mini-series documentary series, and agree to their inclusion in LIV marketing materials.
— John Nucci (@JNucci23) February 25, 2023
8. Players are prohibited from providing exclusive interviews with or appearances in or on any media or social media in relation to any LIV activities without first obtaining LIV or team operator approval.
— John Nucci (@JNucci23) February 25, 2023
9. Players are required to participate in and assist LIV with meetings, negotiations and/or other activities with corporate sponsors, including team promotional activities and league activities.
— John Nucci (@JNucci23) February 25, 2023
10. At LIV's request, players must introduce LIV representatives to the player's existing or prior sponsors to facilitate sponsorship discussions for LIV and other LIV Players.
— John Nucci (@JNucci23) February 25, 2023
11. Players must not make statements or commit acts in public forums that are: false, defamatory, slanderous, or that may adversely affect the reputation or public image of any “relevant person.”
Relevant persons includes LIV shareholders, like the Kingdom of Saudi Arabia.
— John Nucci (@JNucci23) February 25, 2023
In short, at least some LIV contracts appear more restrictive than the the competing event policy that LIV is challenging on antitrust grounds.
Additionally, LIV players may not have full control of their likeness, which was a public gripe of Phil Mickelson against the PGA Tour.
— John Nucci (@JNucci23) February 25, 2023
In August 2022, Judge Beth Freeman, who is overseeing the case, remarked the following about LIV contracts:
“[These contracts] lock up these players in ways that the PGA Tour never imagined. They are so restrictive."
— John Nucci (@JNucci23) February 25, 2023
The response to the thread has been interesting.
Comments included:
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