Saudi-backed LIV Golf shocks the world After months of speculation and questions about the future of professional golf, the PGA Tour announced Wednesday that Strategic, a group of billionaire sports team owners, announced that it has finalized an agreement with the sports group. It invested about $3 billion in a new for-profit entity, PGA Tour Enterprises.
On Wednesday, embattled PGA Tour Commissioner Jay Monahan held a 9:30 a.m. “listen-only” conference call with members of the PGA Tour, PGA Tour Champions, and Korn Ferry Tour to discuss the deal. explained.
The crux of the deal is that SSG will be involved, allowing players to become equity partners on the PGA Tour.
“As part of this new partnership, we are launching a player equity program for current and future players, who will have access to over $1.5 billion in interest,” Monaghan said on a conference call. Told.
“PGA Tour members will become equity members of PGA Tour Enterprises. This will strengthen the connection between players and the PGA Tour, while also creating a shared vision for organizational unity.
“With this stock issuance, you now become owners of the PGA Tour. This is historic, novel, and innovative and has never been done on this scale in any other sport. ”
Tiger Woods, one of the six player members of the PGA Tour Policy Committee, also participated in the conference call, addressing his fellow players and thanking SSG for “believing in our sport.”
“As the tour grows, so do we,” Woods said. “The more you invest in the Tour, the more you earn, and this has never happened before in the history of the sport. It’s very exciting for me to be a part of that.”
Strategic Sports Group (SSG) includes Tom Warner and John Henry (Boston Red Sox), Steve Cohen (New York Mets), Mark Attanasio (Milwaukee Brewers), Arthur Blank (Atlanta Falcons), Comprised of Wick Grousbeck (Boston Celtics). ), Tom Ricketts (Chicago Cubs), and others.
The group will become a minority investor in PGA Tour Enterprises, and the PGA Tour will remain a majority shareholder.
What Monaghan’s call did not include was information about an expected “framework agreement” with Saudi Arabia’s Public Investment Fund (PIF) and DP World Tour, the company behind LIV Golf.
“The agreement with SSG does not affect ongoing negotiations with PIF,” Monaghan said. “SSG is aware of and supports the continued dialogue with PIF. We will continue to advance the dialogue as long as it favors our future and the Policy Board.”
In other words, Monaghan and the PGA Tour appear to be hoping LIV will continue down that path for the foreseeable future.
This is the next big step the PGA Tour must resolve, signing a “framework agreement” with PIF on June 6 to consolidate its commercial assets, including LIV Golf.
The agreement was originally set for a Dec. 31 deadline, but was extended as both sides continued to finalize the final details. Mr Monaghan and PIF President Yasir Al-Rumayan reportedly met last week.
The most pressing question waiting to be answered with this “Framework Agreement” is how the PGA Tour and LIV Golf will coexist, and whether players who paid tens or hundreds of millions in deposits to join LIV will be welcomed back. The question was whether or not it would work. You can now compete in PGA Tour events without being affected.
In theory, everyone’s goal is to complete as many events together as possible and become the best player.
Rory McIlroy, who has spent the better part of the past year and a half as Monaghan’s spokesperson and criticized players who have jumped on the LIV dollar, has made a significant change in position, especially since world No. 2 Jon Rahm. And McIlroy’s friend went to LIV for a reported $500 million.
More recently, Tyrrell Hatton, another friend of Rahm’s and McIlroy’s European Ryder Cup teammate, joined LIV and Rahm’s team, further softening McIlroy’s stance on the Saudi-backed tour.
“Life is about choices,” McIlroy told reporters Tuesday ahead of the start of this week’s Pebble Beach Pro-Am. “Everybody made the choice to go and play at LIV, and everybody made the choice to stay here. If there’s anybody who’s still eligible to be on this tour and wants to come back and play, we want them to come back.” Yes. It’s difficult to punish people. I don’t think there should be any penalties.
“Obviously, I changed that mind because I looked at the current state of golf and understood that the reduction of the PGA Tour and the reduction of the LIV Tour and other events is not good for both parties.” For the good of the game. It would be much better to stay together and move forward together. I think the sooner we can get everyone together and start playing and get the strongest field possible, the better for golf.
“We may do a deal with PIF, which owned a large portion of LIV, and we hope that at some point things will get back on track here.”
