There are many negotiation lessons from the PGA / LIV situation. For those not glued to the golf channels, the past few years have been a whirlwind. In 2021, a new league, LIV Golf, launched with the backing of Saudi Arabia’s Public Investment Fund (PIF). It aimed to disrupt the PGA Tour, offering a faster, team-based format and guaranteed contracts that lured away star players. The PGA responded by suspending defecting players, which quickly escalated into a bitter public feud and high-stakes lawsuits. The conflict reached a climax in June 2023 with the announcement of a secret “framework agreement” to merge. Not surprisingly, that deal that has since stalled, leaving the golf world fractured. This ongoing drama is more than just a sports rivalry; it’s a great case study for high-stakes negotiation. The appointment of Brian Rolapp as CEO, succeeding Jay Monahan, is certain to make things even more interesting.
Whether you’re closing a sale or negotiating a comp package, the strategies and missteps from this conflict offer great lessons. Here are the three biggest takeaways every negotiator needs to understand.
1. Your BATNA is Your Power
In negotiation, your greatest strength is your Best Alternative To a Negotiated Agreement, or BATNA. It’s your plan B. The better your plan B, and the more of them you have, the more power you have.
Initially, the PGA had a terrible BATNA. Its only alternative to LIV’s disruption was to fight a legal and financial war against an opponent with unlimited funds. This weak position forced the Tour into a defensive crouch.
Then, the Tour made a game-changing move. It secured an investment of up to $3 billion from Strategic Sports Group, a consortium of American sports team owners. Suddenly, the PGA had a fantastic new BATNA: operate independently as a well-funded, player-owned enterprise. It no longer needed a deal with PIF, LIV’s backers. This completely flipped the power dynamic.
One of the most important negotiation lessons from the PGA / LIV situation is don’t just accept your alternatives. Actively work to build and improve them. Most importantly, don’t build BATNAs as you’re sitting down to negotiate; start to build them long before the negotiation begins. A strong walk-away plan gives you the confidence to demand better terms and reject bad ones.
2. Leverage Isn’t Just About Money
LIV entered the scene using its overwhelming financial might as its primary form of leverage, offering players enormous guarantees. It was a brute-force approach that worked, luring away major champions and establishing immediate credibility.
But the PGA found a different, more potent form of leverage in the courtroom. By challenging PIF’s claim of sovereign immunity, the PGA exposed the fund to the U.S. legal discovery process. For PIF, the risk of having its internal strategies and communications laid bare was a huge threat. This non-financial pressure was the catalyst that forced PIF to the negotiating table.
Leverage can come from anywhere: information, relationships, or, in this case, legal pressure. The goal of PIF was not just about golf, but part of a larger national strategy called Vision 2030. The legal exposure the PGA introduced threatened those broader goals. While the PGA prevailed with this heavy tactic, remember: when you have power, it’s critical to use it wisely.
3. The Toughest Negotiations Are Internal
Perhaps the biggest blunder in the entire saga was how the PGA handled the announcement of the framework agreement. The deal was negotiated in secret by Commissioner Jay Monahan and a few board members, leaving players in the dark.
The backlash from loyal players who had turned down LIV’s money based on the Tour’s moral stance was fierce. This internal revolt shattered trust and empowered the player directors on the policy board (like Tiger Woods). Ultimately the player backlash prevented the deal from being finalized. It was a complete failure of stakeholder management.
The negotiation you have with your own side is just as important as the one you have with your opponent. Understand stakeholder interests and ensure you have buy-in. Failing to distinguish between positions and interests within your own camp can cause a perfectly good deal to collapse.
These lessons in power, leverage, and stakeholder alignment will continue to shape the final outcome.