The PGA Tour and Saudi Arabia-backed LIV Golf have been in active discussions, according to a person familiar with the matter, a year after the two entities shocked the world and announced on CNBC that they had agreed in principle to join forces.
Negotiations between the PGA Tour and the Saudi Arabian Public Investment Fund, which backs LIV Golf, are “very active,” this person said.
The newly formed seven-member PGA Tour Transaction Committee – which includes professional golfers Rory McIlroy and Tiger Woods, as well as Fenway Sports Group founder John Henry – and PIF representatives used to meet every Monday and Wednesday and Friday, both in-person and remote meetings will be held for a month, the person added.
The group will meet in person on Friday in New York, with the exception of McIlroy, who will participate remotely.
A PGA Tour representative declined to comment. Representatives of LIV and PIF did not respond.
Last June, when PGA Commissioner Jay Monahan and Saudi PIF Chairman Yasir Al-Rumayyan announced the proposed merger on CNBC, After a bitter legal dispute between the two rival leagues, many were surprised.
The original closing date for the proposed transaction was December 31, 2023, which has been extended. The Tour has since agreed to let American investors participate as well.
The deal has not yet been finalized. But people familiar with the matter said the two sides had exchanged term sheets and largely agreed on the financial part of the deal, with the Saudis and a consortium of investors agreeing to each commit an additional $1.5 billion to the tour. The deal will reportedly be structured similarly to their deal with investor consortium Strategic Sports Group (SSG). The person added that both parties are now focused on product-related decisions involving players, schedules, games and media rights.
The discussions did not mean a deal was imminent, but the pace of the process had picked up with Rumayan attending weekly meetings at times, the person said.
New York Times Early DealBook report About the discussion.
During the year, the Tour attempted to increase its appeal to players by rewarding them for their loyalty to the organization and to prevent defectors from competing with the LIV. Tour increases tournament prize money and creates PGA Tour Enterprisesa new commercial venture that will issue more than $1.5 billion in equity to players.
“By giving PGA TOUR members their own league, we strengthen players’ collective investment in the TOUR’s success,” Monahan said at the time.
In late January, the PGA Tour announced new funding from a group of high-profile investors led by Fenway Sports Group. SSG will inject $1.5 billion into the tour and has pledged to invest another $1.5 billion if a deal is reached with Saudi Arabia.
In May, tour member Jimmy Dunn, thought to be one of the masterminds of the deal, suddenly resigned, voicing his frustration at the lack of progress.
When Dunn was not listed, one source said corporate board of directorshe became depressed and felt like he was no longer needed.
The PIF had been luring PGA Tour golfers, including star Phil Mickelson, to LIV in deals worth hundreds of millions of dollars before the alliance announced the tie-up last June.
Since then, the protracted and confusing deal process has sparked a backlash from players, consumers and U.S. lawmakers, who have also launched investigations and questions about PGA Tour executives. If the merger is completed, it could significantly change the model of professional golf.
After LIV lured tour players with big deals, Monahan said the tour looked at golf “on a global scale” and determined the merger would benefit the sport.
Many critics have accused the 2022 launch of LIV of “sports shuffling”, which is to spread influence through sports to divert attention from Saudi Arabia’s human rights violations.
After a clear line was drawn, players expressed frustration with the proposed deal, leading the PGA Tour to increase financial incentives for golfers.
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