PGA Tour agrees to merger with LIV Golf in shock move

By Rahul Banerji

Ultimate cave-in, or practical call? In a shock move, the PGA Tour on Tuesday said it would merge with LIV Golf to unify a fracturing world golf order.

The move promises to end an 18-month schism that had divided professional golf around the world and reunite a sport that has seen stagnant television numbers and departing sponsors.

It had also spawned legal challenges and counters in the US and Europe, which will now be withdrawn or mutually ended with players being readmitted to the regular tours.

And amidst all the bonhomie, there is bound to be a question over the long-term future of PGA Tour commissioner Jay Monahan in the new dispensation, particularly with LIV Golf becoming a full-time participant in the future of the sport.

From the start, Monahan took an extreme position against the parallel league and its spearhead, Greg Norman. How and where he will now fit into whatever new organisation that takes shape remains to be seen.

Equally, the same could be said of Norman’s future as well.

Joint declaration

A statement jointly datelined New York, Riyadh and Ponte Vedra Beach, said, “The PGA Tour, DP World Tour and the Public Investment Fund today announced a landmark agreement to unify the game of golf, on a global basis.

“The … agreement 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 stakeholders benefit from a model that delivers maximum excitement and competition among the game’s best players. 

“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.”

A part of the deal is a mutual agreement to end to all pending litigation between the participating parties.

Back to the fold

The three organisations said they would establish a fair process for players who seeking a return to the PGA Tour and DP World Tour after the 2023 season and determine

criteria and terms of re-admission.  

“After two years of disruption and distraction, this is a historic day for the game we all know and love,” Monahan said. 

“This partnership recognizes 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 organisation 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.”

Exciting day

Added Yasir Al- Rumayyan, “Today is a very exciting day for this special game and the people it touches around the world.

 “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 (DPWT head) Keith (Pelley) to bring the best version of the game to communities around the world.”

New setup

As per the agreement, a board of directors will oversee and direct all the new entity’s golf-related commercial operations, businesses and investments.

The as-yet-unnamed entity will work to ensure a schedule of events. 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. The PGA Tour will appoint a majority of the board and hold a majority voting interest in the new setup.

The board will include Al-Rumayyan as chairman and Monahan as chief executive officer; and include an executive committee comprising Al-Rumayyan, Monahan, and PGAT members Ed Herlihy and Jimmy Dunne. 

The full Board will be announced at a later date, and it is anticipated that all three founding members will have representation.

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