The PGA Tour and Saudi-backed LIV Golf have been in active discussions, according to a person familiar with the matter, a year after the two entities stunned the world and announced on CNBC that they had agreed in principle to join forces bundling.
Discussions between the tour and the Saudi Public Investment Fund, which backs LIV Golf, are “extremely active,” the person said.
The newly formed seven-member PGA Tour Transaction Committee – which also includes professional golfers Rory McIlroy and Tiger Woods, as well as Fenway Sports Group founder John Henry – and PIF representatives met every Monday, Wednesday and Friday met in person and remotely on Friday. month, the person added.
The group will meet in person in New York on Friday, with the exception of McIlroy, who will participate remotely.
A PGA Tour representative declined to comment. Representatives of LIV and PIF did not respond.
When PGA Commissioner Jay Monahan and Saudi PIF Governor Yasir Al-Rumayyan announced the proposed combination on CNBC last June, it surprised many after a bitter legal feud between the two competing leagues.
The proposed deal deadline, originally set for December 31, 2023, was extended. The tour has also since agreed to let US investors participate in the mix.
The deal has not yet been completed. But the sides have exchanged term sheets and largely agreed on the financial part of the deal, the familiar said, with the Saudis and the consortium of investors agreeing to each put another $1.5 billion into the tour. The deal will reportedly be structured similarly to their deal with the Strategic Sports Group, a consortium of investors. The parties are now focusing on product-related decisions involving players, schedules, tournaments and media rights, the person added.
The talks do not mean a deal is imminent, but the pace of the process has increased with Al-Rumayyan sometimes attending the weekly meetings, the person said.
DealBook from the New York Times earlier reported on the discussions.
Over the year, the tour has attempted to become more attractive to players and prevent defectors from competing with LIV by rewarding them for their loyalty to the organization. The tour increased prize money at tournaments and created PGA Tour Companiesa new commercial venture that will distribute more than $1.5 billion in equity to players.
“By giving PGA TOUR members ownership of their leagues, we are strengthening our players' collective investment in the success of the PGA TOUR,” Monahan said at the time.
In late January, the tour announced new capital from a group of high-profile investors led by Fenway Sports Group. The SSG is injecting $1.5 billion into the tour and has pledged another $1.5 billion if a deal with the Saudis is completed.
In May, the tour's Jimmy Dunne, considered one of the architects of the deal, abruptly resigned, expressing frustration at the lack of progress.
A source said at the time, Dunne was not on the list Works CouncilHe became frustrated and felt like he was no longer needed.
Before the leagues said last June they would join forces, PIF had lured PGA Tour golfers, including star Phil Mickelson, to LIV with deals worth hundreds of millions of dollars.
Since then, the lengthy and tumultuous deal process has sparked backlash from players, consumers and U.S. lawmakers — who have also questioned and questioned PGA Tour executives. If the merger is completed, it could dramatically change the landscape of professional golf.
After LIV lured players from the Tour with big money deals, Monahan had said the tour was looking at golf “on a global basis” and determined the merger would benefit the sport.
Many critics have accused LIV, which launched in 2022, of “sportswashing,” or spreading influence through sports in an attempt to divert attention from Saudi human rights abuses.
After clear lines were drawn, players expressed frustration with the proposed deal, prompting the tour to increase financial incentives for golfers.
