Perfect summary. I think the PIF wanted another opportunity to branch out the oil money and took it. There are several possible end games, and you mentioned most. One I particularly enjoy is that this is dragged out over the next two years, and Trump Admin v2 gets to issue the exemption allowing the two tours to merge officially.

I heard on a reliable pod (The Ringer) that part of the deal creates a new for profit entity that will be able to negotiate and create contracts with both players and sponsors, and that the PIF money may go into that entity. This would effectively be a $2-3 billion investment in the PGA by PIF. What the creation of LIV was intended to do all along.

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Jun 8, 2023·edited Jun 8, 2023

Great insights and agree in theory but I'm SO cynical these days because not one banker went to jail after 2008 collapse (Democrats in charge), Trump was never held accountable, and his kids are billionaires (the list goes on). From SCOTUS to Congress we're in a corporatocracy where money decides everything. The thought that America will enforce laws and hold rich people or corporations accountable feels impossible in 2023.

Can our government discipline anyone but the less fortunate?

How are these sports leagues considered non-profit? If we can't take away non-profit status from private equity owned hospitals making billions, why should sports be penalized?

I hope you're right but however it pans out, does it matter to the 99%? Is it just another distraction from real issues like climate change?

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I think a lot of times discussions about business strategy (especially relating to sovereign wealth funds of petrostates) assumes some kind of "purity of the game" where the goal is to make a lot of money the old way (making investments in growing businesses) and not something more ulterior (extending how much money they can get for their oil and delaying the reforms that are sure to come with an energy transition).

This is how you get a country that's constantly modernizing, yet is no more modern than before and them thinking the PIF can be treated as a commercial entity when it suits them while being shielded as a state entity kind of gives the game away. They don't actually need a return off LIV Gulf, they just need the appearance that it's a commercial venture and not a billboard for Saudi Arabia.

You also kind of see the same pattern with some of the venture capital and startup investments Saudi Arabia makes, where they at lose a lot of money yet also somewhat weaken the innovation ecosystem making it less of a challenge to them the way electric cars already are. As long as it's cheaper and easier for them sport- and innovation wash their theocracy than reform it they'll probably continue to do just that.

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First NGRI (not guilty by reason of insanity) plea in a criminal antitrust proceeding?

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