Rest In Peace, Race to Dubai
The Race to Dubai was announced last year to great fanfare by the European Tour and its commish George O'Grady. The Euro Tour was going to have an answer to the PGA Tour with a $10 million golf tournament, the Dubai World Championship, and their $10 million bonus pool based off of the former Order of Merit.
Almost all of the continental Europeans that were a part of the brain drain to the US PGA Tour in the last decade showed support for the concept and vowed to help the Euro Tour surge.
The risk in the entire deal was staking the European Tour's future on the money of Dubai - paper wealth that was largely tied into real estate development. When the global real estate market imploded, the risk was realized.
But, O'Grady had no backup plan for the fact that Dubai-owned Leisurecorp went out of business and was taken over by a larger government-owned organization. The best he could muster was to get Leisurecorp's new overseer to pony up 75% of the original $20 million for the Race to Dubai. While that may be a minor win for the Euro junket, what the future will hold for this concept is still largely in the air.
The doubt surrounding the Race to Dubai is evident among the players. Rory McIlroy is officially toying around with the idea of playing dual schedules on both sides of the Atlantic. This after McIlroy's agent told reporters earlier in the year that his man has no use for a PGA Tour card.
Apparently, the European Tour is also resigning itself to the pending demise of the concept. Irish Golf Desk is reporting that the European Tour is considering a move that would force players seeking to compete in the Race to Dubai to first play in four of six "core" events in addition to existing tournament requirements.
This proposal effectively boils down to, in Padraig Harrington's words, "protectionism" by the Euro Tour - perhaps seeking to keeps its own membership more insular and likely to win the Race to Dubai's bounty. It may well be a realization that this concept will not be around for very long, therefore the Tour may as well allow its own to take biggest advantage of the idea.
Invariably, the Race to Dubai will fail and come to an end. This proposal is just one indication of its tortured rise and fall.
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I was wrong
I thought the Race to Dubai could have been a strong foil to the PGA Tour in 2009, especially since it threatened to take away some PGA Tour stars during key weeks of the PGA Tour regular season. Whoops! I blame the economy, of course.
Eli Miller
http://www.southlandgolfmagazine.com
http://www.blogtalkradio.com/millertimegolf
by SouthlandGolf on Oct 4, 2009 4:35 PM EDT reply actions 0 recs
oh well...
yet another example – you can’t borrow and spend your way into prosperity. best to know what you’re good at and your limits, then plan your growth with a little bit of patience and good decision making – not hype and the promise of people you’re not really familiar with.
"this ball will fit in that fairway"
by courtgolf on Oct 4, 2009 4:50 PM EDT reply actions 0 recs
RIP is ...at least somewhat... exaggerated
…though as an attention-grabbing headline, I’ll admit, it’s quite good. It strikes me a somewhat presumptuous carelessly bombastic (unless it’s an attempt at humor) to declare that “Invariably, the Race to Dubai will fail and come to an end.”
Your initial statement that “what the future will hold for this concept is still largely in the air.” is certainly more accurate. The thing of it is, no one knows, at this point , how the world economic crisis is going to pan out.
The majority of economists now feel that – at best – many of the worlds economies will continue to show minimal or stagnant growth for the coming five years. Many feel it’ll be closer to a decade. Still others are predicting a much worse outcome; an outcome that includes everything from periodic declines to major meltdowns in one or more of the world’s large economies.
I think the steps the Euro Tour is taking… like reducing the prize money and requiring participation in certain core events… makes total sense. And I think your hyperbole is showing with protectionism . After all doesn’t the PGA have rules that have a similar effect, and aren’t many fans calling for more such rules in regards to the Fedex Cup?
Now I may misinformed or getting this all wrong… my specialty, after all, is golf’s fun, flirty and fashionable side… but when I saw the headline I felt that even if it was humor, it warranted some discussion as the humor might be lost on some readers. Many folks here don’t realize that western Europeans …In general … would be more accepting of a sudden reduction in prize money than Americans (again…in general) would be. Their history has led them to a culture that does not value over-the-top wealth the way ours does….one that understands the concept of saving and self-sacrifice in times of hardship. This even applies to golfers… despite the comments of Fernandez-CastaƱo last week. There are of course exceptions…once again I’m generalizing… but I’d guess most Americans who’ve spent time actually living in Europe would agree.
Hopefully, for everyone everywhere the economy will get back on track in the not to distant future, but in the meantime I think events like the Race to Dubai will adapt and continue to exist. No RIP needed yet, ;o)
by golfgirl on Oct 4, 2009 6:38 PM EDT reply actions 0 recs
I should mention that the protectionist label was applied by Paddy Harrington himself when he heard about the “core” event measures being proposed. So, it’s definitely not hyperbole. The PGA Tour has a floor of 15 total events to be played to maintain membership (barring some kind of medical exemption). The Euro Tour currently has one of 12. Neither really dictate which events have to be played to get to that number, though.
With the global economy expected to be in a slump for anywhere between one and ten years – depending on how gloomy you feel that day – the Euro Tour is going to face problems not dissimilar from the LPGA Tour. It’s a tough environment, and they’re gaining some small measure of a victory here by still having the thing at all. But, you have to remember, too, that Dubai is trying to save face with this. If they can’t even get this thing off of the ground for one year, it makes them look even weaker than they already do.
O’Grady said in the past that there was a decent chance that the Race to Dubai may not have happened at all, given what happened to Leisurecorp.
I’m not trying to turn this into a comparison between American and European culture, but this should be a discussion about the desire to sponsor the product offered by each Tour. There are still companies willing to pony up PGA Tour dollars. And I’m sure there are some that would get on the Euro Tour train as well. But, those are individual events. There have been purse reductions for individual events on both tours this year.
The Leisurecorp sponsorship was more along the lines of what FedEx is doing with the FEC. They were going to help the Euro Tour build and develop new courses for their events, build a Dubai office for the Tour, and maybe even push for a 2018 Ryder Cup bid. To have all of that go away in a flicker is devastating for the Tour. And O’Grady has no backup plan. So, I see what he’s doing as protectionist because he is literally trying to protect whatever money he can salvage from this concept for his players – not the Americans that took up associate memberships with the Tour so they could cash in on this thing by playing four genuine Euro Tour events.
Email me any comments or questions at ryan@thegolfnewsnet.com.
by Ryan Ballengee on Oct 5, 2009 12:13 AM EDT reply actions 0 recs
inaccurate
Rather than comment on the wildly speculative reports of the Race to Dubai’s demise, I just thought I’d point out the woeful inaccuracies in this article.
Since its inception, Leisurecorp has always been part of Dubai World (a Dubai government holding company) and therefore always part of the Dubai government – it has not been “taken over”.
It is not bankrupt as was been initially reported in the UK and repeated without reference; rather, its real estate assets have been merged with larger sister company Nakheel – also part of Dubai World.
Leisurecorp does not have a “new owner” – both companies have always shared the same Chairman (Sultan Ahmed Bin Sulayem).
I assume the article will be corrected.
by azza888 on Oct 5, 2009 12:43 AM EDT reply actions 0 recs
I’ve always referred to Leisurecorp as Dubai-owned or backed, which is wholly accurate. I clarified the Nakheel transaction just so everyone is aware of the distinction. Leisurecorp actually does have a new owner, because that owner is Nakheel. Chairman’s a bit different in terms of business-speak.
Email me any comments or questions at ryan@thegolfnewsnet.com.
by Ryan Ballengee on Oct 5, 2009 9:44 AM EDT up reply actions 0 recs
It’s not “different in terms of business speak” where Sultan Ahmed Bin Sulayem is concerned. He’s the man responsible for implementing the successful ports business in Dubai back in the 80s; he set-up ‘Nakheel Golf’ in 2004 after personally recruiting Greg Norman; sits on the board of the EIFG; and is very much hands on with the larger Dubai World companies. He’s far from a figurehead and has been involved in Dubai World’s relationship with The European Tour from day one.
by azza888 on Oct 6, 2009 12:36 AM EDT up reply actions 0 recs
I haven’t been to Dubai since 2002, so I can’t use personal experience as a basis for anything that’s occurred in the past seven years. However, under the leadership of the “Chairman,” Dubai has built man-made sand islands in the Persian Gulf. Upon those islands they have built luxury houses. I’m not an engineer, but that seems a risky proposition.
The connection? I think the Race to Dubai is a concept that may work for a short time, but it’s built on a pile of sand and won’t last.
Truth has a well-known liberal bias.
by dianemarie on Oct 5, 2009 9:47 AM EDT reply actions 0 recs
That’s the issue with the whole concept – was based on paper money. I mean, Dubai seems like a fun place to have a party, but not the best place to be investing right now.
Email me any comments or questions at ryan@thegolfnewsnet.com.
by Ryan Ballengee on Oct 5, 2009 9:58 AM EDT up reply actions 0 recs
The process of ‘vibrocompaction’ makes said man-made sand islands are stronger in solidity than Dubai itself. The creation of a breakwater four metres above sea level ensures there is less erosion than a natural beach. All of the 1,500 villas on the Palm Jumeirah were sold at the launch in 2002 (300% premiums were experienced on these villas during the 2007 peak although the current slump in the market means this profit has been cut by 50% in the last year).
by azza888 on Oct 6, 2009 12:45 AM EDT up reply actions 0 recs
Dubai and America have both had Property Collapses
The article fails to recognise that the same financial difficulties exist in both regions. In fact the dangers to the tournaments in the US are more apparent with the exposure of conmen such as Alan Stanford who is linked with the Colombian Drug Cartels and the Maddoff family amongst others have resulted in the suspension of sponsorship of Golf and Tennis tournaments.
Basically Sports management need to have a reality check and realize that they have been living beyond their means and their tournaments are often financed by some very dodgy money which has its roots in tax evasion, drug laundering, prostitution and human trafikking.
Sport in general needs to clean up its act.
by Fugitive_Golfer on Oct 20, 2009 1:27 AM EDT reply actions 0 recs

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