British Open: R&A CEO Martin Slumbers open to future Saudi Arabian investment
The British Open will offer a record $16.5 million purse this week, the smallest of the four major championships
Saudi Arabia won’t become a title sponsor of the British Open — that's not on the table for anybody — but R&A CEO Martin Slumbers said Wednesday that he was open to accepting money from the country’s Public Investment Fund in the future.
Slumbers, speaking ahead of this week’s British Open at Royal Liverpool Golf Club in Hoylake, England, has seen Saudi Arabia’s push into sports in recent years, both in golf and elsewhere. That’s not really something he’s in a position to stop.
"We have a number of large corporate partners that help us make this thing happen," Slumbers said. "I think the world has changed in the last year. It's not just golf. You're seeing it in football. You're seeing it in F1. You're seeing it in cricket. I'm sure tennis won't be that far behind."
After more than a year of a contentious battle in the sport, the PGA Tour announced last month that it planned to form a partnership with LIV Golf and the DP World Tour. The PIF has already invested more than $2 billion trying to get LIV Golf off the ground, and it reportedly plans to invest more than $1 billion in the new entity.
The R&A is one of the main governing bodies in golf, though it is separate from the DP World Tour, just like the USGA is separate from the PGA Tour and the PGA of America. USGA CEO Mike Whan said at the U.S. Open last month in Los Angeles that, as far as he was aware, the PIF hasn’t contacted them about investing.
The PIF has invested across the globe, which has led to allegations of “sportswashing” and plenty of criticism. The PIF owns 80% of Newcastle United in the Premier League, and it’s a primary sponsor in Formula 1, the LPGA Tour and more. The PIF is reportedly working on investing in tennis, too, and Saudi Arabia is funding a major push in its domestic soccer league, which recently signed Cristiano Ronaldo to a massive deal.
Qatar’s sovereign wealth fund invested into Monumental Sports & Entertainment earlier this summer, too. That group owns the NBA’s Washington Wizards, WNBA’s Washington Mystics, NHL’s Washington Capitals and more. The NBA now allows up to a 5% passive investment from sovereign funds, but commissioner Adam Silver said there are no plans to allow such a fund to take full control of a franchise in the way that the PIF did with Newcastle.
"The world of sport has changed dramatically in the last 12 months, and it is not feasible for the R&A or golf to just ignore what is a societal change on a global basis," Slumbers said. "We will be considering within all the parameters that we look at all the options that we have."
British Open offering record purse, but still smallest among majors
The British Open will offer a record $16.5 million purse this week. The winner will receive $3 million, which is $500,000 more than Cam Smith received for winning last year at St. Andrews. Increased purses is something the PGA Tour and the major championships have done to try and compete with LIV Golf. The U.S. Open offered $20 million last month, and The Players Championship had a $25 million purse in March. Multiple other notable Tour events also offered $20 million purses.
While it’s not just constantly increasing purses that he’s worried about, Slumbers knows the R&A and other top organizations in the sport have to find a way to sustain the rapid growth over time.
"These are the stark choices which we, and I'm sure the other leading bodies in golf, are facing, and we have to take a strategic approach that is financially sustainable over the longer term rather than just finding short-term solutions," Slumbers said. "If you want to know what I really care about and what I think is important for the game, it's the financial sustainability of professional golf. It's ensuring that golf is thriving in 50 years' time, but really importantly, that we maintain and do not forget the values around our game."
That seems to be partly why he’s not shutting down any potential future foreign investments. And if the R&A starts working with the PIF, its American counterparts almost certainly won't be far behind.
