What happens when a broadcaster decides to stop paying a league they’ve signed a deal with? The LPGA may soon provide us with a case in point, as the tour is suing Korean company JoongAng Ilbo Co., Ltd., the parent of Korean broadcaster JTBC, over unpaid rights fees and sponsorships. JTBC’s commitments included underwriting a sponsorship for the Fir Hills Seri Pak Championship in Los Angeles, which was set to occur in March before the LPGA canceled it last month. They have reportedly not paid any rights fees for 2024 or 2025, prompting the league to file a complaint in U.S. federal court, according to a memo from LPGA interim commissioner Liz Moore that Golfweek‘s Beth Ann Nichols obtained this week:
In addition to the unpaid bills that canceled the upcoming Fir Hills Seri Pak Championship, JTBC also failed to pay for broadcasting all LPGA events in 2024 and 2025. Golfweek obtained a memo sent to LPGA players by interim commissioner Liz Moore that outlined further details, including that JTBC had not “engaged meaningfully or provided assurance of payment.”
“To protect our interests, we are filing a complaint to enforce a guarantee agreement with a JTBC affiliate to recover the unpaid amounts,” Moore wrote in a memo sent to players on Feb. 18.
“For now, we are not terminating our agreements and will continue honoring our obligations to avoid disruptions in tournament coverage in Korea. However, if JTBC fails to meet its broadcast commitments, we are prepared to implement alternative solutions.”
As noted by Front Office Sports’ Margaret Fleming, JTBC executives have addressed the non-payment issue. According to the Korean outlet Media Today, the CEO of JTBC Plus, Oh Young-min, stated in an internal meeting (translated to English from Korean): “In fact, we have been holding out by not paying the PGA and LPGA broadcasting rights fees. We have been working to lower the PGA and LPGA broadcasting rights fees since March and April of this year.” JTBC Plus operates the network’s golf channel. Furthermore, JTBC Plus and JTBC Discovery announced plans to lay off about 80 employees late last year due to a significant deficit, according to Media Today. The LPGA previously sued JTBC Plus in SDNY in 2020 for breach of contract but voluntarily dismissed it later that year. Similarly, the PGA sued JTBC Plus in the Southern District of Florida in 2021 for failing to pay $700,000 and ignoring its requests, reaching a settlement the following year.
There have been other instances of broadcasters failing to fulfill their payment obligations, including issues with Bally Sports networks during the complicated bankruptcy of Diamond Sports Group, as well as the 2017 collapse of ONE World Sports that saw some games pulled back due to non-payment. Other leagues and companies have terminated contracts with international broadcasters over geopolitical situations. However, the LPGA-JTBC situation is notable for the continued provision of live events despite the non-payment, highlighting the complications of a deal struck in 2009 and finalized in 2010, which included not just a rights fee but also sponsorship of events.
This scenario indicates the LPGA may need to find a new Korean broadcast partner soon, as the JTBC deal only runs through 2025. Given the success of Korean golfers on the tour, this is crucial. As seen with other past moves, the rights could potentially switch sooner to avoid a lame-duck period, particularly if a new deal is secured early and JTBC fails to meet its payment obligations.
In any case, this situation remains one to watch for the LPGA, as it will impact not only broadcast rights revenue but also Korean broadcasts and tournaments.
