The PGA Tour has been in discussions with the Public Investment Fund of Saudi Arabia (PIF) for a while, and it seems that an agreement between both parties is nearly finalized.
A deal between the PGA Tour and Saudi Arabia’s Public Investment Fund (PIF) is close to finalization following months of discussions between the two sides.
The discussions aimed at resolving the ongoing discord between the PGA Tour and LIV Golf have been ongoing since the framework agreement was announced in June 2023. After a period exceeding 18 months, it seems that the negotiations are nearing completion, with Bloomberg indicating that the Public Investment Fund (PIF) is set to acquire a six percent stake in PGA Tour Enterprises.
This agreement will further the financial commitment made towards the Tour’s newly established for-profit entity, following a deal valued at up to £2.4 billion ($3 billion) that was finalized with Strategic Sports Group (SSG) earlier this year.
According to the report, insiders familiar with the agreement state that PIF is set to match the conditions established by SSG, which might place the value of PGA Tour Enterprises at $9.5 billion ($12bn). It was emphasized that the terms might change, and have not yet been approved definitively.
A completed agreement would mark a complete reversal by the PGA Tour regarding their stance towards their Saudi counterparts. PIF’s entry into men’s professional golf in 2022 through the LIV circuit was swiftly dismissed by Tour commissioner Jay Monahan, who appeared disinterested in engaging in discussions with the Middle Eastern fund.
After the official launch of the Saudi-backed LIV league two years ago, Monahan expressed his confidence, stating: “I believe our fans and partners, who must be weary of the constant chatter about money, will remain engaged and excited by the top-notch competition you showcase week after week.
“Every shot you take carries real consequences, and your rightful place in history awaits when you finally step into that coveted winner’s circle… This week’s RBC Canadian Open perfectly illustrates the incredible experience you’ve built with the PGA Tour.”
“An impressive lineup, a dedicated sponsor, fully booked hospitality options, unprecedented attendance, and worldwide broadcast coverage.” These components are integral to the Tour’s essence, shaped by figures such as Jack [Nicklaus and Arnie [Arnold Palmer], advanced by Tiger [Woods] and many others – whose legacies are deeply interconnected, with one another and with the PGA Tour. This shared heritage cannot be purchased or traded.
Monahan, however, appears ready to team up with the entity responsible for the LIV organization, making his initial public appearance next to PIF chairman Yasir Al Rumayyan in October. The duo competed together in the Alfred Dunhill Links Championship in Scotland, indicating that the tensions between the PGA Tour and LIV were nearing resolution.
Competitors participating in the breakaway circuit continue to face a ban from the PGA Tour. There is optimism that an agreement between the two parties may enable prominent players such as Brooks Koepka, Bryson DeChambeau, and Jon Rahm to rejoin their previous Tour following the conclusion of the peace negotiations.
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