PGA Tour-LIV Golf merger ‘framework’ sent to US Senate, goes public

The US Senate has been sent details of a proposed merger between the PGA Tour and LIV Golf brokered by Saudi Arabia’s Public Investment Fund ahead of a July 11 sub-committee heading on the matter.

The five-page document released by Reuters and the New York Times gives bare details of the June 6 framework agreement between the two feuding golf bodies and moots creation of a for-profit subsidiary of the PGA Tour to “manage commercial investments and assets for all tours”.

The US-based PGA Tour will have a permanent controlling interest in the new entity’s bpard of directors despite PIF essentially bankrolling the effort with Tour commissioner Jay Monahan slated to play a lead role. The agreement also ends a series of litigations launched by either side.

Monahan however, has asked to be relieved of day to day duties on the PGA Tour to manage an undisclosed health condition and has since remained incommunicado.

As per the first statement on the merger, PIF governor Yasir Al-Rumayyan will be the chairman of the new set-up that came against the backdrop of a battle between the OGA Tour and the DP World (European) Tour on one side, and the Greg Norman-fronted LIV Golf on the other, that divided golf almost down the middle.

All three major players – Al-Rumayyan, Monahan and Norman – have been invited to testify before the Senate on July 11 after US Senator Richard Blumenthal asked for details of the merger against a backdrop of concerns over security and a Saudi takeover of the PGA Tour.

In the merger framework, there are only a few binding commitments – including the end to all litigation – in the proposed merger, leaving much of the fine print yet to be worked out, the NYT said. The five-page framework agreement was obtained by the newspaper on Monday, the day the tour shared a copy of it with the Senate sub-committee.

As of bow there is no final word on upcoming contributions from either side to the new entity or its valuation, only a focus on its basic structure which will hold all commercial businesses/rights” of the PGA Tour and the DP World Tour.

For its part, PIF is expected to contribute its golf-related investments and assets, including LIV Golf and will have first opportunity to invest in the new company chaired by its governor, Al-Rumayyan with no mention of a role for Norman.

December 31, 2023 is the deadline to give final shape to the new company/entity.