THE world of golf was left stunned on Tuesday (Wednesday in Manila) as the PGA Tour, DP World Tour, and rival Saudi-backed LIV circuit, who have been involved in a bitter fight that has split the sport, announced a shock agreement to merge and form one unified commercial entity.
Additionally, the organizations said in a joint news release they will work together to allow a process for LIV Golf players to reapply for membership on the PGA Tour and DP World Tour, formerly known as the European Tour, following the 2023 season.
The bombshell announcement was slammed by many PGA Tour players who were left in the dark about the merger and comes after a very public war of words between all the sides, mounting tensions and a bitter legal battle.
“After two years of disruption and distraction, this is a historic day for the game we all know and love,” said PGA Tour Commissioner Jay Monahan, who had long been a vocal critic of LIV Golf.
“How did we go from a confrontation to now being partners? We just realized that we were better off together than we were fighting or apart,” he told reporters following an “intense” meeting with Tour golfers to discuss details of the deal.
No details were given as to how the agreement will impact the current competitive golf landscape, including eligibility for this year’s Ryder Cup, though the parties did say they will work in the coming months to finalize terms of the merger.
The LIV Golf series is bankrolled by the Saudi Arabia Public Investment Fund and critics have accused it of being a vehicle for the country to attempt to improve its reputation in the face of criticism of its human rights record.
Much of the backlash centers around the alleged involvement of the Saudi Arabian government in a multitude of human rights violations, including the murder of Washington Post journalist Jamal Khashoggi in 2018.
The deal announced on Tuesday (Wednesday in Manila) is a binding framework agreement, but the financial terms have not been hashed out yet, 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 the PGA Tour’s assets before the price at which the merger will happen gets determined, the source added.
A mechanism is included in the agreement to resolve any valuation disputes, the source said, without elaborating further.
The announcement of the merger includes an agreement to end all pending litigation between the participating parties.
Additionally, the Public Investment Fund (PIF) will make a capital investment into the new entity to facilitate its growth and success.
PIF, which owns more than 90% of LIV, plans to invest billions of dollars in order to have a sizeable 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 leverage PIF’s unparalleled success and track record of unlocking value and bringing innovation and global best practices to business and sectors worldwide.”
