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Emerging details reveal the plans for the merger of the commercial operations of the PGA Tour and Saudi-backed LIV Golf, aiming to bring the top players of the sport under a new unified entity. A recently obtained five-page agreement between the PGA Tour, the Saudi Arabia Public Investment Fund, and Europe’s DP World Tour outlined the creation of a for-profit subsidiary of the PGA Tour to manage the commercial assets of all the tours, while the PGA Tour continues to handle competitions.
The agreement stipulates that the PGA Tour will maintain a permanent controlling interest in the new entity’s board of directors, and this majority share remains unaffected by the investments made by the PIF. The Saudi Arabia Public Investment Fund, although a minority investor, has committed to investing billions into the entity. The agreement, which is dated May 30, does not include specifics about the valuation of the assets, as it is still under negotiation.
News about the structure of the deal has come just ahead of a Senate hearing on July 11, where representatives from all parties involved have been summoned to testify. The merger agreement aims to resolve the ongoing litigation between the PGA Tour and LIV Golf, ending a series of antitrust claims filed by both organizations against one another.
LIV Golf, launched in 2022, has faced significant controversy and criticism since its inception. The Saudi Crown Prince Mohammed bin Salman controls the Saudi Arabia Public Investment Fund (PIF), which is accused of “sportswashing” by using LIV Golf and other sports investments to distract from the nation’s human rights violations. The signing of the tentative merger agreement involved PGA Tour Commissioner Jay Monahan, DP World Tour CEO Keith Pelley, and PIF’s Yasir al-Rumayyan.
Aside from the mentioned details, the agreement provides little information about the proposed merger. All player recruitment has been halted during the negotiation process, and a set of requirements has been established to guide the definitive deal. These requirements also include a nondisparagement clause between all entities involved.
The final agreement, still under negotiation, requires approval from the PGA Tour board, including player directors. However, PGA Tour Commissioner Jay Monahan, who is expected to be the future commissioner of the new entity, is currently on medical leave and it is uncertain if he will be present during the Senate hearing.
In the aftermath of the 2023 season, the entities have committed to establishing a fair and objective process for players who wish to re-apply for membership with the PGA Tour or DP World Tour.
Simultaneously, key lawmakers are conducting a Senate subcommittee hearing to scrutinize the proposed deal. Senators Richard Blumenthal and Ron Johnson have expressed concerns about a foreign government’s investment in American cultural institutions and the implications of the agreement on professional golf in the United States going forward. The PGA Tour has confirmed its executives will testify at the hearing.
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