In massive climbdown, PGA Tour agrees to join hands with LIV Golf 

In a capitulation that left the golf metaverse stunned on Tuesday, the PGA Tour (PGAT) said it would merge with LIV Golf to unify the deeply divided arms of the men’s professional sport worldwide. 

When it goes through in early 2024, the move will bring the curtains down on a bitter two-year-long feud between the “establishment” in the form of the PGA Tour and the DP World (European) Tour and the breakaway LIV Golf League floated by Australian golf legend Greg Norman. 

What helped the “rebels” over this period was the solid backing of Saudi Arabia’s Public Investment Fund that underwrote a movement that equally split professional golf as well as brought in a raft of benefits for members of the PGAT in terms of bigger purses and limited schedules. 

A host of legal challenges born of the divide will now be withdrawn with LIV Golf members being readmitted to the establishment over a period of time and as per a pre-decided schedule drawn up by a new-look board of directors that will include PGAT bosses and PIF governor Yasir Al-Rumayyan.  

The merger will affect men’s professional golf worldwide. As the divide deepened over the last year, both the PGAT and LIV Golf scrambled to build ties and find allies across the globe. One example was the Asian Tour that opted to link up with the Saudi-backed league, even as the domestic Professional Golf Tour of India threw its lot in with the PGAT and DPWT. 

It will also give Al-Rumayyan – who has been looking to break into the men’s professional tours for some time – a far greater say in golf worldwide from now on as he will become charman of a new organisation that will steer the sport from 2024 onwards, as per a statement on the issue. 

The statement 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 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 process will be put in place for players seeking a return to the PGAT and DPWT after the 2023 season with appropriate criteria and terms of re-admission. A good number of European players have been fined and suspended and many have even paid up the fines so this promises to be a tricky matter, as also the issue of their status with regard to the Ryder Cup later this year.  

“After two years of disruption and distraction, this is a historic day for the game we all know and love,” Monahan was quoted as saying. “This transformational partnership recognises 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 organisation that will benefit golf’s players, commercial and charitable partners and fans.   

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“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.” 

Added 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.   

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

A board of directors will oversee and direct all the new entity’s golf-related commercial operations, businesses and investments besides an event schedule. PIF will initially be the exclusive investor in the new entity, alongside the PGA Tour, LIV Golf and the DP World Tour.  

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 board members. The full composition of the new board will be announced later, and it is anticipated that all three founding members will have representation. 

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