This week, LIV Golf received news of two major blows in its operations: lawsuits and layoffs.
The World Golf Group and Premier Golf League filed a lawsuit against LIV Golf, the Public Investment Fund of Saudi Arabia, and other parties. They are seeking up to $630 million in damages on the grounds of breach of contract and unlawful means conspiracy.
Further, news released on Wednesday that LIV Golf briefed employees about the possibility of layoffs. With the organization hanging on by a thread, they issuing Worker Adjustment and Retraining Notification Act warnings, per legal requirements. It indicates potential cut downs of staff.
When the Saudi Public Investment Fund left LIV Golf, the demise of the enterprise seemed certain. Now, the story just unfolds.
LIV Golf Lawsuit Hinders Potential Investment
A lawsuit clearly will give any potential investors more reasons not to give money to LIV Golf.
The lawsuit against LIV Golf and the Public Investment Fund accuses both parties of stealing plans and information from the World Golf Group and Premier Golf League.
They state, “The Claimants conceived the idea for a new golf league called the Premier Golf League,” the complaint says. “Over the course of several years, the Claimants refined the format of this league and produced business plans, contracts, financial models and other intellectual property belonging to the Claimants, which provided the blueprint for its launch and success. The Defendants conspired together to use the Claimants’ confidential information without the permission of the Claimants to launch the LIV Golf League.”
Richard Marsh and Jed Moore are two former founders of the World Golf Group who are also defendants in the lawsuit. Allegedly, they met with Yasir Al-Rummayan, the governor of the PIF. Al-Rummayan showed interest only if the league could secure top tier talent. The players at the time were not interested, so the league never got going. Once the idea of LIV Golf started to materialize, they Saudi representatives wanted to get more people involved.
The lawsuit says, “[Golf Saudi CEO Majed] Al-Sorour accepted that the Claimants had valuable intellectual property, personnel and experience that would be acquired in return for a financial amount and/or equity in the ‘golf enterprise,’ and that the Claimants would not be cut out.”
Layoffs Imminent After Company Announcement
GettyDespite all the negative news about LIV Golf, CEO Scott O’Neil continues to say face and be confident.
Following the WARN, the law requires a 60-day notice for LIV Golf to inform employees of any future mass setbacks. Wednesday’s notice is only the first step in that process. However, the league still continues to search for outside investment even with mass layoffs and event postponements happening.
A messenger for LIV Golf said, “As our process to identify strategic investors moves forward in a positive direction, and as part of responsible planning for a range of possible outcomes, we have notified employees in the United States and United Kingdom of potential future actions related to the League’s corporate workforce. This step is being taken in accordance with legal obligations in each jurisdiction. We deeply appreciate our employees’ continued dedication as we work toward a strong and sustainable future for the league.”
Continue to follow any LIV Golf updates with Heavy on Golf as the lawsuits and layoffs happen.
LIV Golf News: Potential Lawsuits and Layoffs Fuel Shutdown Fires