01 March 2023 , 14:58
479
0
LIV Golf are reportedly set to 'stop paying travel expenses' for its players and caddies, as the mega-money, Saudi-backed series looks to crack down on its spending during its second season.
There is no doubt LIV has not been short of cash following its inception last summer, signing players on multi-million-pound deals, whilst offering lucrative prize pots in each of its tournaments. One other incentive that was offered was the covering of expenses as the players and caddies made their way across the globe to compete.
The cover was seen as one of the breakaway circuit's huge perks, with brother and caddie of inaugural champion Dustin Johnson, Austin describing the treatment as 'life-changing' late last year.
This however could be no more, with Fire Pit Collective's Alan Shipnuck reporting that the all-expenses-paid plan for both players and their caddies had been scrapped. The decision comes with LIV no doubt looking to further enhance their business model in 2023.
In their maiden season the Saudi-funded circuit's lawyers confirmed that LIV had made 'virtually zero revenue', whilst economy expert Steve Levitt claimed he did not see the the breakaway tour 'lasting more than a couple of years' if its current model was anything to go by.
Bubba Watson shares details of horror knee injury ahead of LIV Golf debut
This is not the only change implemented to protect LIV's finances. As a result the report also revealed that the team prize money won by players at each event is now invested into growing their team franchise, rather than banking the funds themselves. This does not players will see none of the cash at all though, with each now being paid an annual salary from their teams.
Dustin Johnson was LIV Golf's biggest on-course earner in 2022 (AFP via Getty Images)Within the playing quota though the changes have not been well received, with one anonymous player telling Shipnuck it has led to growing tension. "There is already tension," they said. "This week some caddies flew economy and are staying at a motor inn, while [the loopers from Brooks Koepka’s Smash] flew business class and are staying at the [swank] Rosewood.”
Amid the criticism of LIV's money-making artillery, chief executive Greg Norman has defended the franchise business model when speaking to economist Levitt on his ' ' podcast. The Australian said: "So we have 12 principal players. Those 12 principal players own 25 percent of that franchise.
What are your thoughts on franchise teams in golf? Let us know in the comments section below.
Greg Norman has defended the business model (NurPhoto via Getty Images)"The league owns 75 percent of it. Now that principal player is responsible for his own P&L [profit and loss] over his team. No different than any NFL team, right? They’re responsible for their own P&L — profit and loss. So he has to bring in individuals to help him manage his team.
"They could come from the agents or agencies that represented them over a period of time, or they could be outside, third-party individuals, or he could go source these individuals to come in to work on that. So they’re going to bring in sponsorship to the team. I can tell you the excitement of my principal players of the league has been elevated exponentially because now they see long-term value of understanding how to build out this franchise value.”