MONEY TALKS! AND HOW! The world of golf, fragmented since May last year following the launch of LIV Golf – bankrolled by Saudi Arabia’s Public Investment Fund (PIF) – declared a truce Tuesday that left the golfing world at large shell-shocked.
The deal, negotiated in complete secrecy from the players and announced Tuesday, sees the PGA TOUR and DP World Tour, till now in bitter dispute with LIV Golf in both the board room and the courts, the reach a landmark agreement to “unify the game of golf on a global basis”.
The parties have signed an agreement that combines PIF’s golf-related commercial businesses and rights (including LIV Golf) with the commercial businesses and rights of the PGA TOUR and DP World Tour into a new, collectively owned, for-profit entity to ensure that all (corporate) stakeholders “benefit from a model that delivers maximum excitement and competition among the game’s best players”, a media release said.
In addition, PIF will make a capital investment into the new entity to facilitate its growth and success. The new entity (name TBD) will implement a plan to grow these combined commercial businesses, drive greater fan engagement and accelerate growth initiatives already underway. With LIV Golf in the midst of its second, groundbreaking season, the PGA TOUR, DP World Tour and PIF will work together to best feature and grow team golf going forward.
Missing from the release was any quote from LIV Golf commissioner Greg Norman, the man who was singled out by Tiger Woods and Rory McIlroy (both of who had no clue about the deal it needs noting) as someone “who needs to go” before any talks could take place.
The Golf Channel’s Todd Lewis reported that influential golfers, those who turned down truckloads of money from LIV previously, feel “betrayed and manipulated” by this merger and the lack of communication about it from PGA Tour officials. It appears that a vast majority of golfers found out the same way we did: on Twitter or via press release.
PGA pro Wesley Bryan tweeted, “I feel betrayed, and will not … be able to trust anyone within the corporate structure of the PGA TOUR for a very long time.” He went on to call commissioner Jay Monahan a horrible communicator who stresses he “works” for the players — the same players he failed to loop in on the biggest golf deal of all time.
As The Ringer reports, players are right to feel betrayed, because they were. Monahan sent Rory McIlroy and Jon Rahm, among many others, in front of camera after camera last year to defend the PGA Tour and condemn LIV Golf and its backers. These golfers also gave up tens of millions of dollars or more in upfront cash and spent countless hours reshaping the tour in an attempt to make up some of that money. The product was miles better than LIV and leveraged the history of the game and nostalgia in ways LIV could never match. But as boxing superstar Floyd “Money” Mayweather Jr. once said: “Your kids can’t eat legacy.”
India’s Anirban Lahiri, one of the contracted players on LIV Golf, was as surprised at the news.
“Personally, definitely surprised. It is quite a shocking, surprising development. Definitely one of those days in the history of golf that you will mark as unexpected. Like all the other players on both sides, nobody knew this was happening or coming,” Hindustan Times quoted Lahiri as having said.
“Hard for me to comment much, because we don’t know all the details. However, I can definitely say that being on the so-called “wrong side” of it for the last year, having had to face so much negativity, criticism and alienated by people I thought were friends, it’s a happy day for me.
The joint release from the PGA TOUR, DP World Tour and PIF further reads:
Notably, Tuesday’s announcement will be followed by a mutually agreed end to all pending litigation between the participating parties. Further, the three organizations will work cooperatively and in good faith to establish a fair and objective process for any players who desire to re-apply for membership with the PGA TOUR or the DP World Tour following the completion of the 2023 season and for determining fair criteria and terms of re-admission, consistent with each Tour’s policies.
“After two years of disruption and distraction, this is a historic day for the game we all know and love,” said PGA TOUR Commissioner Jay Monahan. “This transformational partnership recognizes the immeasurable strength of the PGA TOUR’s history, legacy and pro-competitive model and combines with it the DP World Tour and LIV – including the team golf concept – to create an organization that will benefit golf’s players, commercial and charitable partners and fans. Going forward, fans can be confident that we will, collectively, deliver on the promise we’ve always made – to promote competition of the best in professional golf and that we are committed to securing and driving the game’s
future.
“We are pleased to move forward, in step with LIV and PIF’s world-class investing experience, and I applaud PIF Governor Yasir Al-Rumayyan for his vision and collaborative and forward-thinking approach that is not just a solution to the rift in our game, but also a commitment to taking it to new heights. This will engender a new era in global golf, for the better.”
“Today is a very exciting day for this special game and the people it touches around the world,” said PIF Governor Yasir Al-Rumayyan. “We are proud to partner with the PGA TOUR to leverage PIF’s unparalleled success and track record of unlocking value and bringing innovation and global best practices to business and sectors worldwide. We are committed to unifying, promoting and growing the game of golf around the world and offering the highest-quality product to the many millions of long-time fans globally, while cultivating new fans.
“There is no question that the LIV model has been positively transformative for golf. We believe there are opportunities for the game to evolve
while also maintaining its storied history and tradition. This partnership represents the best opportunity to extend and increase the impact
of golf for all. We look forward to collaborating with Jay and Keith to bring the best version of the game to communities around the world.”
Under the terms of the agreement, the Board of Directors of the new entity will oversee and direct all the new entity’s golf-related commercial operations, businesses and investments. The new entity will work to ensure a cohesive schedule of events that will be exciting for fans, sponsors and all stakeholders. PIF will initially be the exclusive investor in the new entity, alongside the PGA TOUR, LIV Golf and the DP World Tour. Going forward, PIF will have the exclusive right to further invest in the new entity, including a right of first refusal on any capital that may be invested in the new entity, including into the PGA TOUR, LIV Golf and DP World Tour. The PGA TOUR will appoint a majority of the Board and hold a majority voting interest in the combined entity.
