LIV Golf disrupted professional golf by combining Saudi Public Investment Fund capital with guaranteed player contracts, team-based competition, global events, and experimental media strategies. This case places students in the position of PGA Tour Commissioner Jay Monahan following the June 2023 framework agreement among the PGA Tour, DP World Tour, and the Public Investment Fund. The central managerial dilemma concerns how an incumbent organization should respond when a capital-intensive challenger threatens established governance structures, labor relationships, and commercial models while simultaneously generating legitimacy and reputational concerns. Strategic alternatives include continued competition, negotiated integration, selective adoption of challenger practices, or broader redesign of the incumbent’s governance and incentive system. Subsequent developments―including LIV Golf’s Fox Sports distribution partnership and its transition to 72-hole events for the 2026 season―demonstrate how challengers and incumbents often converge following periods of disruption. The case is designed to support classroom discussion of resource-based competition, legitimacy, stakeholder risk, platform ecosystems, institutional convergence, and governance redesign in prestige-based sport industries. Drawing on resource- based view, legitimacy theory, platform ecosystem theory, and institutional theory, the case enables students to evaluate how capital, reputation, stakeholder alignment, and governance interact in a rapidly changing sport business environment. The case is suitable for MBA, executive MBA, graduate, and advanced undergraduate courses in strategic management, sport management, platform strategy, global business, and stakeholder management.