One of the most divisive chapters in the sport of golf seems to have ended, with the PGA Tour and the Saudi Public Investment Fund (PIF) backed LIV Golf announcing a permanent ceasefire and merging their commercial interests.
The joint statement on Tuesday, which also included the DP World Tour, said the Saudi sovereign wealth fund and the two Tours would “implement a plan to grow these combined commercial businesses, drive greater fan engagement and accelerate growth initiatives already underway”.
PIF will make a capital investment into the new and yet-to-be-named entity. The two Tours and PIF will work together to grow team golf going forward. The new entity will be collectively owned and for-profit.
PGA and LIV Golf merge
The warring parties have also agreed to mutually end all pending litigations.
Details on what happens to the membership and how players will be re-integrated into the Tours were not given out. But it is expected to happen after the 2023 season is over.
PIF Governor Yasir Al-Rumayyan commented: “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.”
Jay Monahan, PGA Tour Commissioner, added: “After two years of disruption and distraction, this is a historic day for the game we all know and love.
“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 organization that will benefit golf’s players, commercial and charitable partners and fans.
“We are pleased to move forward, in step with LIV and PIF’s world-class investing experience, and I applaud 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.”
PIF will initially be the exclusive investor in the new entity, alongside the PGA Tour, LIV Golf and the DP World Tour. Going forward, it will have the exclusive right to further invest in the new entity, including a right of first refusal.
Al-Rumayyan will also join the PGA Tour Policy Board.
The Board of Directors of the new commercial entity will include Al-Rumayyan as Chairman and Monahan as Chief Executive Officer.
All parties will work in the months to come to finalise terms of the agreement, with details to be announced in due course.
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