LPGA Sues Longtime Korean Broadcast Partner to Recover Unpaid Funds

The LPGA filed a complaint in federal court against a longtime South Korean media partner this week for unpaid bills.

The defendant is JoongAng Ilbo Co., Ltd., the parent company of broadcaster JTBC. The network has had its name on LPGA events over the years like the Hugel-JTBC LA Open and JTBC Founders Cup. The case in the U.S. District Court in the Southern District of New York is under seal.

In January, the LPGA canceled its March Fir Hills Seri Pak Championship in California “due to the event underwriter failing to fulfill any portion of its payment obligations to the LPGA Tour for the 2024 and 2025 events.” That underwriter is JTBC, Golfweek reported about a week later.

Then, also on Tuesday, LPGA interim commissioner Liz Moore sent a memo to players obtained by Golfweek saying the tour would file a complaint “to enforce a guarantee agreement with a JTBC affiliate to recover the unpaid amounts.”

“For now, we are not terminating our agreements and will continue honoring our obligations to avoid disruptions in tournament coverage in Korea,” Moore wrote. “However, if JTBC fails to meet its broadcast commitments, we are prepared to implement alternative solutions.”

The broadcaster hasn’t been coy about not paying the tour. According to the Korean outlet Media Today, the CEO of JTBC Plus, Oh Young-min, said 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. 

JTBC Plus and JTBC Discovery announced plans to lay off around 80 employees late last year amid a large deficit, according to Media Today. JTBC Plus also has rights to upcoming World Cups and Olympic Games.

The LPGA previously sued JTBC Plus, which operates the network’s golf channel, in SDNY in 2020 for breach of contract, and voluntarily dismissed it later that year. The PGA sued JTBC Plus in the Southern District of Florida in 2021 over failing to pay $700,000 and ignoring its requests, but reached a settlement the following year.

A representative for the LPGA confirmed the tour filed a complaint but declined further comment. Representatives for JoongAng Ilbo did not immediately return an off-hours request for comment.

The LPGA and JoongAng Ilbo first announced a partnership in 2009. South Korea is an important market for the tour because the nation consistently produces some of the best women’s golf players in the world, including Seri Pak, who played on the LPGA tour from 1998 to 2016.

It’s not clear how much money the LPGA is trying to get from the media company. The purse for the California championship was $2 million, which is the same amount the LPGA was expected to lose last year. The event was originally called the Hugel-JTBC LA Open when it debuted in 2018. Nelly Korda won it last year, taking home $300,000 of the $2 million purse.

The LPGA’s deal with JTBC is over at the end of this year and the tour is looking for a new partner, Golfweek reported.