In a recent closed-door meeting, PGA Tour commissioner Jay Monahan explained to loyal players why they merged with rivals LIV Golf, and it boils down to avoiding what was a losing battle.
Earlier this week, the PGA Tour — and the DP World Tour — shocked the golf world by announcing a planned merger with LIV Golf. The news was stunning considering the bitter rivalry that had developed between the top professional golf tours over the last two years.
Related: PGA Tour and LIV Golf agree to shocking merger ending 2-year golf rivalry
For LIV players that had been banned from competing for the PGA and DP, after joining the league funded by the Saudi Arabian Public Investment Fund, the merger was a win-win situation. They were able to stay with LIV and continue to make huge sums of money while now regaining the opportunity to return to action in PGA Tour and DP World Tour events.
However, the news was met with shock and frustration by PGA players. Many top stars stayed loyal to the legendary tour during their war with LIV. They chose to take the moral high ground by not joining a tour backed by an arm of the Saudi Arabian government and its ugly history of civil rights atrocities. Furthermore — and maybe more important — they passed on massive signing bonuses to make less with the PGA.
While they will never be happy about the merger, it was revealed on Friday that PGA Tour players will actually receive equity shares in the new company that will oversee the three top golf tours. And that is a major win not just financially, but because it seems they were tied to what would have been the losing horse in this golf war.
On Saturday, the Wall Street Journal reported that in a recent special meeting called by PGA commissioner Jay Monahan, he hit the loyalists with the cold hard truth of why they merged with LIV Golf. They were bound to lose against a rival with endless amounts of disposable cash.
“We cannot compete with a foreign government with unlimited money. This was the time. … We waited to be in the strongest possible position to get this deal in place.”
– Jay Monahan
The Saudi PIF reportedly manages over $700 billion in funds that will not be declining anytime soon. The Wall Street Journal report also claims that the PGA had spent $50 million in a legal battle with LIV that had no clear end in sight, and had used over $100 million of their own funds to try and compete with the billions funding LIV.
In the end, despite the legendary status of the PGA Tour, their leadership knew it was just a matter of time before the money would win out and the tour would be forced into a merger and have no leverage.