At present, Jay Monahan, the commissioner of the PGA Tour, finds himself consumed not only with news from the sports and business pages, but also with international affairs. It is a role that brings with it a sense of trepidation, as he must confront the potential consequences that await him. One recent development has been particularly troubling.
A Malicious Campaign Unveiled
A lawsuit has exposed a disturbing alleged campaign of persecution by Yasir Al-Rumayyan, the governor of the Saudi Arabian Public Investment Fund, against a defector who has been imprisoned without due process, along with his children, for the past four years. While it is important to approach allegations made in lawsuits with caution, often being hyperbolic in nature, they can shed light on certain aspects of the case. In this instance, it seems that personal interpretation has come into play, as some individuals believe that their own understanding of the law and rules of golf holds greater weight.
Looking at the situation from a broader perspective, it is possible to view the altercation as a mere squabble among individuals representing a despotic government. The accuser, Dr Saad Aljabri, the former chief of Saudi intelligence, claims that Al-Rumayyan’s controlled entities have exerted pressure on his family. This is not the first time that an entity in the PIF portfolio has been linked to illicit activities. For instance, a charter jet company that belonged to Crown Prince Mohammed bin Salman was seized and later implicated in the gruesome murder of Washington Post writer Jamal Khashoggi. While there is no indication of Al-Rumayyan’s involvement in this heinous act, it is understandable that those associated with him in business circles may feel uneasy.
A Factotum for the Crown Prince
Al-Rumayyan is renowned as a shrewd dealmaker, although his backing of Greg Norman’s ventures may raise some eyebrows. However, like many others within the Saudi Arabian state apparatus, he remains subservient to Crown Prince Mohammed bin Salman. Such individuals are inclined to carry out actions in line with the Prince’s wishes, especially when matters close to his heart are involved. Given what loyalists have been known to do, particularly with a bonesaw in hand, it is vital for anyone conducting business with the Saudi fund to remain well-informed of international news developments, rather than naively ignore them for the sake of amusement.
No Room for Ignorance
While the PGA Tour has encountered its fair share of troublesome partnerships in the past, such as with Wells Fargo and Allen Stanford, the wrongdoings were not known prior to signing contracts. However, when it comes to a sovereign wealth fund tied to a government with a poor human rights record, claiming ignorance is not an option. This situation also differs significantly from Saudi involvement in other sports, like F1 or cricket. The line between sponsorship and ownership is immense, and if an agreement is reached with PIF, the U.S. and European tours, along with private investors from Strategic Sports Group, risk becoming more than just equity stakeholders. Harvard Business School cannot provide adequate guidance on predicting the perils that come with maintaining a direct relationship with an autocratic regime headed by a capricious prince who detests criticism. Nonetheless, this should not have to be explained.
A Strategy of Compromise
Fortunately, there is a method available to navigate these unpredictable waters. LIV golfers have shown that by diligently referring to Al-Rumayyan as “His Excellency,” they can convey a sense of intimacy that seemingly elevates their position. This strategy entails confidently facing inquiries, engaging in equivocation if necessary, affirming that the association is purely commercial, and repeatedly highlighting other entities that also receive Saudi investment. Remarkably, this approach works. Recent years have demonstrated that revenue can be exculpatory in the minds of many, based on the misguided notion that one would sacrifice ethical considerations for financial gain if presented with the opportunity.
The PGA Tour’s Dilemma
It is important to acknowledge that any potential fallout from partnering with Saudi Arabia should not be attributed to the aspirations of executives in Ponte Vedra or Wentworth. Instead, it is driven by the desire of the world’s top golfers to receive compensation that surpasses their market value. By presenting a ransom demand that only the Saudis are willing to meet, PGA Tour golfers are effectively absolving themselves of individual responsibility in decision-making. Should any reputational damage arise as a result in the future, it will be akin to dealing with bad yardages or swing slumps—someone else will bear the brunt of the consequences.
Frequently Asked Questions
What are the allegations against Yasir Al-Rumayyan?
Al-Rumayyan, the governor of the Saudi Arabian Public Investment Fund, has been accused of taking part in a malicious campaign to punish a defector and his imprisoned children, who have been held without due process for four years.
Who is Dr Saad Aljabri?
Dr Saad Aljabri is the former chief of Saudi intelligence who has come forward as the accuser, claiming that Al-Rumayyan’s controlled entities have exerted pressure on his family.
Has Al-Rumayyan been involved in any nefarious activities before?
One notable incident involving Al-Rumayyan’s fund is the alleged connection of a charter jet company, previously seized by the Crown Prince and later transferred to the fund, to the murder of journalist Jamal Khashoggi. While there is no direct evidence implicating Al-Rumayyan, it does raise concerns among his business associates.
How have golfers on the PGA Tour navigated their relationship with Al-Rumayyan?
PGA Tour golfers have chosen to employ a strategy of compromise, referring to Al-Rumayyan as “His Excellency” and emphasizing the strictly commercial nature of their association. This approach aims to divert attention from potential ethical concerns and draws parallel to other entities that also receive Saudi investment.
What risks does the PGA Tour face by entering into a partnership with Al-Rumayyan?
Beyond reputational risks, the PGA Tour, along with the U.S. and European tours, and private investors from Strategic Sports Group, may find themselves not just as equity stakeholders, but potentially having to assume greater responsibilities within the partnership. Aligning with an autocratic regime under the leadership of a capricious prince brings inherent unpredictability and criticism.
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