The PGA TOUR, DP World Tour and LIV Golf today announced a landmark agreement to “unify’’ the game of golf, on a global basis. Each of the parties have signed an agreement that combines LIV Golf’s golf-related commercial businesses and rights with the commercial businesses and rights of the PGA Tour and DP World Tour into a new, collectively owned, for-profit entity.
In a joint statement, the parties said the agreement ensure that “all stakeholders benefit from a model that delivers maximum excitement and competition among the game’s best players.
The agreement, could also be seen as a loss for the PGA Tour, which over the past two years banned players who jumped to LIV Golf and publicly criticized the startup organziation for its financial backing from the Saudi Public Investment Fund.
As part of the agreement, PIF will make a capital investment into the new entity to facilitate its growth and success. The new, yet-to-be-named entity, according to the statement, will implement a plan to grow these combined commercial businesses, drive greater fan engagement and “accelerate growth initiatives’’ already underway.
With LIV Golf in the midst of its second season, the statement said “the PGA TOUR, DP World Tour and PIF will work together to best feature and grow team golf going forward.’’
Today’s announcement will be followed by a mutually agreed end to all pending litigation between the participating parties. Further, the statement said the three organizations will “work cooperatively and in good faith’’ to establish a fair and objective process for any players who desire to re-apply for membership with the PGA Tour or the DP World Tour following the completion of the 2023 season and for determining fair criteria and terms of re-admission, consistent with each Tour’s policies.
The Board of Directors of the new commercial entity will include PIF Governor Yasir Al-Rumayyan as Chairman and PGA Tour Commissioner Jay Monahan as Chief Executive Officer. The new entity’s Board will also include an Executive Committee comprising Al-Rumayyan, Monahan, Herlihy and PGA TOUR Policy Board member Jimmy Dunne, powerful president of Seminole Golf Club in Juno Beach, FL. The full Board will be announced at a later date, and it is anticipated that all three founding members will have representation.
Interestingly, a role for LIV Commissioner Greg Norman – the public face behind the organization – was not mentioned.
“After two years of disruption and distraction, this is a historic day for the game we all know and love,” Monahan said. “This transformational partnership recognizes the immeasurable strength of the PGA Tour’s history, legacy and pro-competitive model and combines with it the DP World Tour and LIV – including the team golf concept – to create an organization that will benefit golf’s players, commercial and charitable partners and fans. Going forward, fans can be confident that we will, collectively, deliver on the promise we’ve always made – to promote competition of the best in professional golf and that we are committed to securing and driving the game’s future.’’
Under the terms of the agreement, the Board of Directors of the new entity will oversee and direct all the new entity’s golf-related commercial operations, businesses and investments. The new entity will work to ensure a cohesive schedule of events that will be exciting for fans, sponsors and all stakeholders. PIF will initially be the exclusive investor in the new entity, alongside the PGA Tour, LIV Golf and the DP World Tour. Going forward, PIF will have the exclusive right to further invest in the new entity, including a right of first refusal on any capital that may be invested in the new entity, including into the PGA TOUR, LIV Golf and DP World Tour. The PGA Tour will appoint a majority of the Board and hold a majority voting interest in the combined entity.
Separately, PGA Tour Inc. will remain in place as a 501(c)(6) tax exempt organization and retains administrative oversight of events for those assets contributed by the PGA Tour, including the sanctioning of events, the administration of the competition and rules, as well as all other “inside the ropes” responsibilities, with Monahan as Commissioner and Ed Herlihy as PGA Tour Policy Board Chairman.
Al-Rumayyan will join the PGA TOUR Policy Board. The DP World Tour and LIV Golf will retain similar administrative oversight of events on their respective Tours.
The Board of Directors of the new commercial entity will include Al-Rumayyan as Chairman and Monahan as Chief Executive Officer; the new entity’s Board will also include an Executive Committee comprising Al-Rumayyan, Monahan, Herlihy and PGA Tour Policy Board member Jimmy Dunne. The full Board will be announced at a later date, and it is anticipated that each of three founding members will have representation.
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