The PGA Tour aims to have a single, unified premier league in men`s professional golf.
However, Saudi Arabia`s Public Investment Fund (PIF) prefers to maintain two separate leagues, which is causing current discussions about merging the sport to stall.
Sources have confirmed that the PGA Tour has rejected the PIF`s latest proposal. This proposal included a $1.5 billion investment in PGA Tour Enterprises, the Tour`s for-profit arm, but it was conditional on keeping the LIV Golf League as a separate entity.
The PIF, which has been the financial backer of LIV Golf since its inception in 2022, also wants its governor, Yasir Al-Rumayyan, to be appointed as co-chairman of the PGA Tour Enterprises board. Currently, Joe Gorder, former CEO of Valero Energy, chairs the board, and Tiger Woods is the vice chairman.
Reports indicate that the PGA Tour responded to the PIF`s offer with a letter earlier this week.
Previously, sources informed that the PGA Tour found the continuation of LIV Golf in its current format unacceptable. The PGA Tour`s primary goal is to bring the world`s best golfers back to competing in a single tour.
According to sources, the PIF is firm in its stance and insists on team golf being a part of the sport`s structure if any agreement is reached. The PGA Tour has explored alternative solutions that could incorporate some form of team competitions, possibly at international locations during the fall season.
PGA Tour commissioner Jay Monahan stated that while some obstacles have been overcome, others persist. He emphasized the urgency to find a resolution that satisfies fans and partners without weakening the PGA Tour`s platform or current momentum.
This recent exchange follows a four-hour meeting held at the White House on February 20th. Attendees included Al-Rumayyan, Monahan, Woods, and PGA Tour player director Adam Scott. Prior to this, President Donald Trump met with Monahan and Scott in Washington on February 4th.
Speaking to reporters, Trump expressed his hope for a merger between the competing tours, believing it would be beneficial. He mentioned his involvement and desire to see the PGA Tour and LIV Tour unite.
Reports suggest that PIF`s investment in LIV Golf will reach $5 billion by the end of this year. LIV Golf, known for its 54-hole tournaments, no-cut format, shotgun starts, and team-based play, has struggled to gain significant traction in the U.S., particularly in terms of attracting corporate sponsorships and achieving high TV viewership.
Brooks Koepka, a LIV Golf League captain, admitted before a recent tournament that he had expected LIV Golf to have made more progress by its fourth season.
Koepka was among several prominent PGA Tour players who joined LIV Golf, attracted by guaranteed contracts exceeding $100 million. Other major champions like Bryson DeChambeau, Dustin Johnson, Jon Rahm, and Cameron Smith also left the PGA Tour and faced suspension.
Financial records from LIV Golf`s UK-based company revealed nearly $400 million in operating losses in 2023 for its events outside the U.S. Financial details for U.S.-based events were not publicly available.
Scott O`Neil, the new CEO of LIV Golf, stated that a deal with the PGA Tour is not essential for LIV Golf`s survival. He expressed openness to a deal if it benefits the growth of golf but affirmed his satisfaction with LIV Golf`s current position and future prospects.
O`Neil is not directly involved in the PIF`s negotiation with the PGA Tour.
O`Neil expressed optimism about LIV Golf`s future and hopes for opportunities for the best players to compete together, whether through a formal merger or other arrangements.
The PGA Tour and PIF had previously engaged in lawsuits against each other, which were dropped upon signing a framework agreement on June 6, 2023, aimed at forming an alliance to reunify golf. Although this agreement expired at the end of 2023, negotiations have continued.
In January 2024, the PGA Tour partnered with Strategic Sports Group (SSG), securing a potential investment of $1.5 billion into PGA Tour Enterprises from this consortium of U.S. sports teams and other investors.
