The PGA Tour and Saudi-backed rival LIV Golf ended their bitter feud by agreeing to a merger in a shock announcement on Tuesday.
LIV Golf and the PGA Tour have signed an agreement in principle, with their rights going to a new, unnamed, and unconfirmed company. Tuesday's blockbuster announcement will also see an end to all pending litigation, after being embroiled in an antitrust lawsuit with the PGA.
LIV defectors such as Phil Mickelson, Brooks Koepka, Dustin Johnson, and Bryson DeChambeau have been roundly criticised for joining the Saudi Arabia Public Investment Fund entity, even coming under fire from fellow competitors and PGA loyalists.
The announcement of a merger, and the end to the PGA-LIV feud, has sent shockwaves through golf, with some stars claiming to find out on social media. Two-time major winner Collin Morikawa found out on Twitter, saying: "I love finding out morning news on Twitter."
However, a letter sent to PGA members from PGA Tour commissioner Jay Monahan has found its way online. It reads in its entirety: "PGA TOUR Members: Today is a momentous day for your organization and the game of golf as a whole.
"The PGA TOUR - your TOUR - is leading the formation of a new commercial entity to unify golf, one that sees the end of the disruption and distraction that has divided the men's professional game for the better part of three years.
"Through a framework agreement, the Public Investment Fund (PIF) is contributing its golf-related commercial businesses and rights (including LIV Golf), along with a significant financial investment, toward minority equity ownership of a new, collectively held, for-profit LLC. This new entity (name TBD) will also include the PGA TOUR's commercial businesses and rights, as well as those of the DP World Tour.
"PGA TOUR Inc. will remain in place as a 501(c)(6) tax-exempt organization and retains administrative oversight of the PGA TOUR, including the sanctioning of events, the administration of the competition and rules, as well as all other "inside the ropes" responsibilities; I remain as Commissioner of the PGA TOUR and Ed Herlihy as PGA TOUR Policy Board Chairman. PIF's Governor Yasir Al-Rumayyan will join the PGA TOUR Policy Board.
"Upon execution of a definitive agreement, the Board of Directors - which will oversee and direct all the new entity's golf-related commercial operations, businesses and investments - will include Al-Rumayyan as Chairman and me as Chief Executive Officer; the two of us will also be a part of the new entity's Executive Committee along with Ed Herlihy and PGA TOUR Policy Board member Jimmy Dunne. The PGA TOUR will appoint a majority of the Board and hold a majority voting interest in the combined entity.
"There are many details to work through as we develop a definitive agreement, which will ultimately require PGA TOUR Policy Board approval, and I know you have many questions. Some additional items to note in the meantime:
- Notably, today's announcement brings about an end to all pending litigation between the participating entities and prohibits any further recruitment of PGA TOUR, DP World Tour or LIV Golf members.
- We will conduct a comprehensive evaluation of LIV Golf and determine how best to integrate team golf into the professional game. The 2023 LIV Golf schedule will continue as planned.
- We will work cooperatively 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, consistent with each Tour's policies. This is a complicated endeavor and one that will be guided by established PGA TOUR rules and regulations.
- In addition to the financial investment in the new entity for an equity stake:
- o PIF will make a financial investment to become a premier corporate sponsor of the
- PGA TOUR (and DP World Tour and other international tours)
- PIF will make an additional investment in the new entity that will allow us to build an even stronger and more robust commercial business, together.
- PIF is committed to significant financial support toward causes that positively impact the game on a global basis.
"There is much work to do to get us from a framework agreement to a definitive agreement, but one thing is obvious: through this transformational agreement and with PIF's collaborative investment, the immeasurable strength of the PGA TOUR's history, legacy and pro-competitive model not only remains intact, but is supercharged for the future. Our game, our players and our fans will no doubt benefit for years to come.
"I will be on site at the RBC Canadian open later today and would like to invite those in the field to a Player Meeting at 4 p.m. to help answer any questions you may have. Sincerely, Jay Monahan."
A number of LIV rebels have taken to social media to react to the news. Mickelson, who has been in verbal sparring with PGA loyalist Rory McIlroy, said: "Awesome day today."
The news comes just nine days before the US Open starts on 15 June. Further details about the deal are set to be released as the terms of the agreement are finalised over the coming months.
Monahan and Yasir Al-Rumayyan, governor of Saudi Arabia's sovereign wealth fund, the Public Investment Fund, which owns LIV Golf, called an end to their feud in a statement, and called the agreement "transformational" following two years of "disruption". PGA's Monahan said: "After two years of disruption and distraction, this is a historic day for the game we all know and love.
"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 organisation 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.
“We are pleased to move forward, in step with LIV and PIF’s world-class investing experience, and I applaud PIF Governor Yasir Al-Rumayyan for his vision and collaborative and forward-thinking approach that is not just a solution to the rift in our game, but also a commitment to taking it to new heights. This will engender a new era in global golf, for the better.”
