PGA Tour, LIV Golf, DP World Tour unite ‘under one umbrella’

The PGA Tour, DP World Tour and LIV Golf League, which have been embroiled in a bitter legal battle for more than a year, have agreed to unify and move forward in a larger commercial business, the races have announced on Tuesday.

Tours calls the stunning development “a landmark deal … on a global basis.”

“There’s been a lot of tension in our sport over the last few years,” PGA Tour commissioner Jay Monahan told CNBC on Tuesday. “What we’re talking about today is coming together to unify the game of golf and do it under one umbrella.

“…We’ve realized that together we can have a much bigger impact on this game than we could work alone. … The game of golf is better for those who play the game. what we did here today.”

The landmark agreement between the tour and the Saudi Public Investment Fund (PIF) was reached without the knowledge of many PGA Tour members as well as LIV Golf players and agents.

One PGA Tour player told ESPN on Tuesday, “No way.”

One golf agent, who represents a few well-known LIV Golf players, told ESPN he was unaware of the merger.

“You just made my heart skip a beat,” the agent said, before the deal was officially announced.

And everyone thought yesterday was the longest day in golf

– Collin Morikawa (@collin_morikawa) June 6, 2023

I guess liv teams are having a hard time getting sponsors and pga tour can’t refuse the money. Mutually beneficial
but it’s a big loss for someone who has protected the tour for the past two years

– Byeong Hun An (@ByeongHunAn) June 6, 2023

Speak Phil Mickelson on Twitter: “Great day today,” with a happy face emoji.

In a statement, the races said the parties had entered into an agreement that “combines PIF’s golf-related rights and commercial businesses (including LIV Golf) with the commercial businesses of PIF.” trade and rights of the PGA Tour and DP World Tour into a new, jointly owned, for-profit organization to ensure that all stakeholders benefit from a model that delivers excitement and maximum competition between the best players of the game.”

Circuits said the agreement ended all pending litigation between the parties.

The three tours said they would work “cooperatively and in good faith to establish a fair and objective process for any player wishing to re-apply for a PGA Tour or DP World Tour membership after end of the 2023 season.”

“After two years of hiatus and distraction, this is a historic day for the game we all know and love,” Monahan said in a statement. “This transformative partnership recognizes the tremendous strength of the PGA Tour’s history, heritage and model of professional competition and joins the DP World Tour and LIV – including the team golf concept – to creating an organization that benefits golfers, commerce and charity partners and fans.”

Monahan held a players meeting Tuesday afternoon in Toronto, the venue of this week’s RBC Canada Open. One player told ESPN that the PGA Tour’s player advisory committee met with U.S. Golf Association officials in Columbus, Ohio, on Sunday. Monahan and other PGA Tour executives also attended the meeting, but there was no discussion of a possible merger with LIV Golf.

In a memo to PGA Tour players Tuesday, a copy of which was obtained by ESPN, Monahan wrote that in addition to making a financial investment in the new organization, PIF will become a leading corporate sponsor. for PGA Tour, DP World Tour and others. international tours. Monahan wrote that PIF will invest to “build an even stronger commercial business together” and pledge “substantial financial support to causes that have a positive impact on gaming on a global basis.” bridge.”

Monahan wrote that the PGA Tour will evaluate the “best way to incorporate team golf into the professional game.” He said LIV Golf will complete its 2023 schedule, which will resume later this month in Spain.

“They’re going their way, we’re going ours, and after a lot of introspection, you realize that it’s all going,” Monahan said in a phone interview with the Associated Press. Even the tension in this game is not a good thing.

Another PGA Tour member, approached by ESPN on Tuesday, questioned why the merger needed to happen when, in his opinion, the PGA Tour is beating the LIV Golf League on field and on the field.

“It’s crazy,” said the PGA Tour player. “The LIV tour drowned in the water. It didn’t work. Now, you’re throwing them a life jacket? Is the moral of the story always taking the money?”

“It’s disappointing to be a member of the PGA Tour,” Callum Tarren, who is ranked 159th in the world, told Golf Channel. “…Those who are still loyal to the PGA Tour, it’s a hit in the teeth for them. Obviously, Rory [McIlroy] was a huge supporter of the PGA Tour, and now it seems all this hard work and sticking with the PGA Tour has been left on the sidelines.”

A great day in the global golf scene for players and fans alike. The journey continues!!

– Greg Norman (@SharkGregNorman) June 6, 2023

LIV Golf League, sponsored by PIF and headed by a two-time Open Championship winner Greg Normanand its 11 players, including Mickelson and Bryson DeChambeausued the PGA Tour in federal court last year, alleging that the PGA Tour used its monopoly power to crush competition and influence suppliers, media companies and others other to avoid cooperation with LIV Golf.

The PGA Tour filed a lawsuit, alleging that LIV Golf interfered with their contract with the player.

Yasir Al-Rumayyan, governor of Saudi Arabia’s sovereign wealth fund, told CNBC on Tuesday morning that Norman was informed of the deal with the PGA Tour and DP World Tour shortly before the official announcement. . Sports Illustrated reported late Tuesday that Norman is not expected to be included in the new business partnership.

It remains to be determined as to how players like Brooks Koepka And Dustin Johnsonwho turned to LIV Golf for a nine-figure bonus, can rejoin the PGA Tour after this year.

Monahan called the reinstatement of PGA Tour members who have left the LIV Golf League a “complex endeavor and will be guided by established PGA Tour rules and regulations.”

According to the release, a board of directors will oversee the new organization’s golf-related commercial, business and investment activities. Teams will work to establish a cohesive schedule. The PIF will be the exclusive investor in the new legal entity and will have the “exclusive right to further invest in the new business, including the right of first refusal on any investment capital.

The PGA Tour will remain a 501(c)(6) tax-exempt organization and will continue to oversee event sanction, competition management, and rules.

Al-Rumayyan, governor of Saudi Arabia’s sovereign wealth fund, will join the PGA Tour’s policy board, which continues to run its tournaments. Al-Rumayyan will be the chairman of the new trade group, with Monahan as CEO and the PGA Tour having a majority stake in the new venture. PIF will invest in commercial joint venture.

“This is a big day,” said Keith Pelley, executive director of the DP World Tour. “We are delighted to not only be able to renew our relationship with PIF, but also have the opportunity to build on our existing strategic alliance partnership with the PGA Tour. Together, we will be stronger than ever before. and is well positioned to bring the game to everyone in every corner of the globe.”

PIF has invested more than $2 billion in the LIV Golf business, which critics have claimed is a form of sports cleansing to correct the Saudi monarchy’s history of human rights abuses.

The 9/11 United Families, a group of nearly 2,500 survivors of family members killed or injured in the September 11, 2001 terrorist attacks, released a statement on Tuesday saying that they were “shocked and deeply offended” by Tuesday’s announcement.

“PGA commissioner Jay Monahan agreed to select the 9/11 community last year in the PGA’s express agreement that Saudi Arabia’s LIV project is nothing more than washing off Saudi Arabia’s reputation,” Terry Strada of The 9/11 Family said. “But now the PGA and Monahan seem to have become more paid Saudi shills, taking billions of dollars to clean up Saudi Arabia’s reputation.”

the group has praising the PGA Tour members in June 2022 for remaining loyal and “standing up for decency” in rejecting LIV Golf.

“I understand the criticism,” Monahan said of Tuesday’s partnership with PIF. “For me, you take the information you had at the time and make a decision in the best interest. Things have changed. This is the right time to talk about this.”

The Associated Press contributed to this report.