The Dec. 31 deadline for a merger of the commercial interests of the PGA Tour, DP World Tour and LIV Golf with backing from Saudi Arabia’s Public Investment Fund (PIF) passed without an agreement between golf’s main professional tours. But hours before the start of the new year, PGA Tour commissioner Jay Monahan issued a memo to players that described negotiations as “active and productive” with plans to extend the deadline. The hope now is to complete a deal ahead of the Masters in April, according to a report in The Telegraph.
On June 6, the parties reached an agreement that ended litigation between LIV and the PGA Tour and called for the creation of a new for-profit entity, PGA Tour Enterprises, separate from the nonprofit PGA Tour. The “framework agreement” caught players off guard who were kept in the dark during negotiations between the PGA and PIF.
In response to the surprise deal, Tiger Woods was named to the PGA Tour Policy Board as a player director.
“I’m pleased at the process and how it’s evolved,” Woods told the media ahead of the Hero World Challenge event in December. “Also frustrated in some of the slowness and the governance change that we want to have happen. And December 31st is coming up very quickly, so there’s the timetable there that we would like to implement some of these changes that have not taken place.”
The PGA and PIF have both been aggressive in recent weeks to secure a stronger hand in negotiations.
Three weeks ago, the PGA Tour Policy Board selected an outside investment group to negotiate with as talks with PIF continued. The Strategic Sports Group is comprised of more than a dozen heavyweights in the sports space, including hedge fund manager and Mets owner Steven Cohen, Home Depot co-founder and Atlanta Falcons owner Arthur Blank, Chicago Cubs owner Tom Ricketts, Milwaukee Brewers owner Mark Attanasio, Fenway Sports Group owner John Henry, FSG chairman Tom Werner, Boston Celtics owner Wyc Grousbeck, as well as a fund backed by the Bezos family.
In his memo, Monahan said the Tour had made “meaningful progress” in its negotiations with SSG and was working on finalizing terms. ESPN reported that SSG was ready to provide the PGA Tour “more than $3 billion” in capital.
Earlier in the month, PIF opened its checkbook to sign Jon Rahm to LIV Golf. “I am proud to join LIV Golf and be part of something new that is bringing growth to the sport,” Rahm said in a press release. “I have no doubt that this is a great opportunity for me and my family and am very excited for the future.” Rahm’s signing bonus was reportedly $300 million.
Rahm, one of the Tour’s most popular players, was ranked third in the Official World Golf Rankings and finished third in the 2023 Player Impact Program behind Rory McIlroy and Woods. The $100 million PIP fund is intended to reward players who drive the most fan engagement and business for the tour.
The memo restated the PGA Tour’s goal to have SSG, PIF and the DP World Tour as minority co-investors in PGA Tour Enterprises in 2024. “These partnerships will allow us to unify, innovate and invest in the game for the benefit of the players, fans and sponsors,” Monahan said.
For now, it is somewhat business as usual on the tours of the PGA and LIV. The PGA’s first event of 2024 is next week in Maui. The player list includes 59 of the 60 eligible players with McIlroy the lone eligible player missing. McIlroy is expected to start his season in the Middle East on the DP World Tour. The event will also be missing its defending champion Rahm, who was suspended from the PGA Tour after he signed with LIV.
The first LIV Golf event tees off Feb. 2 in Mexico at the El Camaleon Golf Course and will be in Las Vegas the following week at Las Vegas Country Club.
(This story has been updated in the first, seventh and tenth paragraphs with details of the memo Jay Monahan sent to players.)
