- PGA Tour calls agreement a “historic day” for golf
- The deal ends the legal battle between the parties
- PGA Tour players were shocked by the surprise announcement
- Families of 9/11 victims oppose fusion
June 6 (Portal) – The golfing world was stunned on Tuesday when the PGA Tour, DP World Tour and Saudi-backed rivals LIV, embroiled in a bitter battle that has divided the sport, reached a shocking agreement announced to merge and form a unified trading entity.
Additionally, in a joint press release, the organizations announced that they will work together to provide a process for LIV golfers to re-apply for membership on the PGA Tour and DP World Tour, formerly known as the European Tour, can apply.
The announcement was hailed as a bombshell by many PGA Tour players left in the dark about the merger and came after a very public exchange of views between all sides, rising tensions and a bitter legal battle.
How did we go from a confrontation to a partnership?
PGA Tour Commissioner Jay Monahan
“After two years of disruption and distractions, this is a historic day for the sport we all know and love,” said PGA Tour Commissioner Jay Monahan, who has long been a vocal critic of LIV Golf.
“How did we go from confrontation to partnership? We just realized that we’re better off together than we were fighting or apart,” he told reporters after an “intense” meeting with tour golfers to discuss details of the deal.
No details were given on how the agreement will affect the current competitive landscape in golf, including eligibility for this year’s Ryder Cup. However, the parties said they will work to finalize the terms of the merger in the coming months.
The LIV Golf series is funded by the Saudi Arabia Public Investment Fund and critics have accused it of being a tool for the country to improve its reputation amid criticism of its human rights record.
Much of the backlash revolves around the Saudi government’s alleged involvement in a variety of human rights abuses, including the 2018 killing of Washington Post journalist Jamal Khashoggi.
The deal announced on Tuesday is a binding framework agreement but financial terms have not yet been finalized, a source familiar with the matter said.
Michael Klein & Co will conduct valuation work on LIV’s assets and Allen & Co will conduct valuation work on PGA Tour assets before determining the price at which the merger will occur, the source added.
Included in the agreement is a mechanism to resolve any valuation disputes, the source said, without elaborating.
EXCLUSIVE INVESTOR
The merger announcement includes an agreement to end all pending litigation between the parties involved.
In addition, the Public Investment Fund (PIF) will make an equity investment in the new company to support its growth and success.
PIF, which owns more than 90% of LIV, plans to invest billions of dollars to earn a sizable minority stake in the combined company, a person familiar with the matter said.
“Today is a very exciting day for this special game and the people it touches around the world,” said PIF Governor Yasir Al-Rumayyan.
“We are proud to partner with the PGA Tour to capitalize on PIF’s unparalleled success and track record of unlocking value, delivering innovation and global best practices to companies and sectors worldwide.”
Monahan said the agreement was in the best interests of PGA Tour members, although he described a closed meeting with the players, at which some called for his resignation, as “intense” and “heated.” [nL1N37Y3B0]
“It gives us a position of control and allows us to work constructively and productively with the PIF,” said Monahan.
“I realize that people will call me a hypocrite.
“Every time I’ve said something, I’ve said it with the information I had at that moment… I accept that criticism. But circumstances are changing.”
[1/3] Brooks Koepka hits his tee shot on the first hole during round one of the LIV Golf DC 2023 tournament at Trump National Golf Club in Sterling, Virginia May 26, 2023. Geoff Burke-USA TODAY Sports
LIV Golf, which features 54-hole events with no cuts instead of the traditional 72-hole format, launched in 2022 and lured big-name players away from the competitive courses with staggering prize pools for every golfer.
The PIF will initially be the exclusive investor in the new company and the board will include Al-Rumayyan as Chairman and PGA Tour’s Monahan as CEO.
After years of bitterness, the deal appears to have come about quickly and without fuss – despite it being one of the biggest commercial stories in the sport’s history.
Al-Rumayyan told CNBC that he and Monahan met in London.
“We had lunch, the next day we played a round of golf and then had lunch again. We talked and discussed everything. I think it will be a matter of weeks (until a final agreement is reached).”
Monahan added, “I give Yasir great credit for coming to the table and coming to the discussions with an open heart and an open mind. We did the same and the golf game is better for what we did here today.”
The PGA Tour, a nonprofit organization, confirmed in July 2022 that the US Department of Justice is investigating whether it violated antitrust laws in its fight against LIV. Continue reading
The PGA had attempted to fend off the competition by banning its players from participating in the breakaway.
However, one antitrust expert said the PGA/LIV deal would be approved and two others said it was too short to cancel.
“This is entertainment. I think that would make it less of a priority for antitrust authorities,” said Bloom Strategic Counsel’s Seth Bloom.
MIXED REACTION
Some of the more prominent players who have made the switch to LIV Golf include Hall of Fame golfer Phil Mickelson, former world number one Dustin Johnson, reigning PGA Championship winner Brooks Koepka and 2022 British Open winner Cameron Smith.
“Great day today,” tweeted Mickelson, whose public image took a hit in February 2022 when the author of an unauthorized biography about him released excerpts from the book in which he called the Saudis “scary” but said he was willing to look past human rights records to make an impact with the PGA Tour.
Some PGA Tour players expressed surprise that they were not informed of the agreement prior to its announcement.
“I love checking out the morning news on Twitter,” wrote two-time Major champion Collin Morikawa.
Former US President Donald Trump, who owns three golf courses that are part of LIV Golf’s 14-event program in 2023, celebrated the deal in all caps in a truth social post.
“Great news from LIV Golf. A big, beautiful and glamorous offering to the wonderful world of golf. Congratulations to everyone!!!”
Since its inception, LIV players have only competed alongside their former peers at the majors, as these four high-profile events on the golf calendar are not sponsored by the PGA Tour or the DP World Tour, but by independent institutions.
Many of those who accepted lucrative contract rewards to join LIV Golf cited a desire to play fewer events and spend more time with their families as the reason for the jump.
Pressure groups 9/11 Families United and Democracy for the Arab World Now, founded by Khashoggi, were among the organizations denouncing the deal.
Fifteen of the 19 hijackers on September 11, 2001 were from Saudi Arabia. However, the kingdom has long denied involvement in the attacks on the Twin Towers, which killed nearly 3,000 people.
“Jay Monahan last year brought the 9/11 community into the PGA (Tour’s) unequivocal agreement that the Saudi LIV project was nothing more than sporting damage to Saudi Arabia’s reputation,” said 9/11 Families United in a statement.
“Now the PGA and Monahan appear to have become just more paid Saudi stooges, taking billions of dollars to cleanse Saudi Arabia’s reputation so that Americans and the world forget how the kingdom made its billions of dollars before the… 9/11 to fund terrorism.” their scathing hatred and fund Al Qaeda and the assassination of our loved ones.
Reporting by Frank Pingue in Toronto; Additional reporting by Diane Bartz, Greg Roumeliotis, Jonathan Landay, Mitch Phillips and Rory Carroll; Edited by Alex Richardson, Christian Radnedge, Toby Davis and Peter Rutherford
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