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FOX'S FORAY INTO GOLF SEEN AS MAJOR THREAT TO PGA TOUR
Published November 17, 1994
"Ready or not, sports gets another golf tour today with a news conference at Sherwood Country Club [in Thousand Oaks, CA] to announce a new golf venture that has generated great controversy before its birth." The World Tour is a joint venture of Fox Television and Executive Sports, a FL-based event management firm that puts on tournaments on the PGA, Senior PGA and LPGA tours, and Greg Norman. News of the World Tour "already has been a source of deep concern" for PGA Tour Commissioner Tim Finchem, particularly since it arrives at a time when the FTC is investigating the PGA Tour for possible "unfair methods of competition" (Thomas Bonk, L.A. TIMES, 11/17). "If enough players back the concept, the ramifications would be vast. Regular PGA Tour events would, in essence, be devalued and tournament sponsors would have less hope of landing marquee players, something that would probably force them to re-evaluate their investment in the tour" (Larry Dorman, N.Y. TIMES, 11/17). WHAT'S FOX UP TO? Jon Mandel, Senior VP of Grey Advertising, compares golf to the NHL, which draws a younger demographic, and calls golf "antithetical to Fox's brand identity." But Michael Hiestand lists three possible reasons why Fox Chair Rupert Murdoch would want to get involved with golf: 1) "The old strategy of buying major sports events to buoy a network"; 2) The potential global audiences and sponsorship opportunities; and, 3) The "winning TV formula" of "chuck the chaff, stick to the stars" (USA TODAY, 11/17). "Only the best, most popular, most marketable players are targeted for the Fox venture" (Bob Green, AP/ATLANTA CONSTITUTION, 11/17). The tournaments, which could be carried on Fox TV, fX cable, and Murdoch's cable systems in Australia, Europe, Asia and South America, will attract "sponsors that market products worldwide" (Mark Asher, WASHINGTON POST, 11/17). PLAYER REAX: Norman and representatives of Fox and Executive Sports met yesterday with about 20 players who were in CA to participate in Norman's Franklin Funds Shark Shootout. Brad Faxon said the purpose of the meeting was to "get a good feel of what the players are thinking so that it's done the right way and we don't jeopardize our standing with the U.S. tour." Arnold Palmer: "I've said for years that there was going to be a world tour. I don't know what approach Greg is taking, but they need to put it together very, very carefully, with the blessings of the PGA Tour, the European Tour and all the golf entities. I would hate to see anything interfere with the PGA Tour. It's been the lifeblood of golf and should continue to be the showcase of professional golf" (Thomas Bonk, L.A. TIMES, 11/17). The World Tour would stage 8-10 events with a limited field of 20-30 golfers, underwritten by $25M from Fox. Hale Irwin: "There are many questions left to be answered. For example: Who are the sponsors other than Fox?" (USA TODAY, 11/17). ALL FOR ONE: Following Finchem's statement that the PGA Tour would fight the new tour, the American Golf Sponsors also came out in opposition. In a statement released yesterday, the group -- made up of tournament and title sponsors and local communities -- called the World Tour "antithetical to the spirit of competition that is provided in our full-field events" (American Golf Sponsors).