Former European Ryder Cup captain Paul McGinley has sounded the alarm for golf's leading tours, cautioning that they could face bankruptcy if the current financial escalation persists. The sport's prize money has soared since LIV Golf, supported by Saudi Arabia's Public Investment Fund (PIF), entered the scene two years ago.
To counter LIV Golf's allure, both the PGA Tour and DP World Tour have upped their payouts to retain players. However, McGinley sees this as a short-term fix with long-term risks. Speaking to Irish Golfer Magazine, he said: "The world's two main tours have always been member organizations. That has worked well for over 50 years, but in this modern world of top-level sport, that dynamic is turning into a double edged sword, as there seems to be too much focus on the present and not enough on the future of the Tours and their financial sustainability.
"Granted, they have had to react to the emergence of a serious rival, but if things continue as they currently are, then the established Tours are on the road to being unsustainable and maybe even bankruptcy.". Meanwhile, the PGA Tour has secured a massive investment from the Strategic Sports Group, who have agreed to inject £2.4 billion into PGA Tour Enterprises, amidst the staggering sums funneled into the LIV circuit.
McGinley however believes it is still the LIV circuit who have the upper hand over their rivals at the Tour. "The player power pushing the enormous prize funds, as well as being paid through PIP and SSG money with the implied threat that they go to LIV if it's not provided, has the PGA Tour on the ropes.
