The future of the LIV Golf Tour will be determined by the PGA Tour, according to framework agreement reached between the PGA Tour, the DP World Tour and Saudi Arabia’s Public Investment Fund (PIF), multiple media outlets reported Monday night.
The U.S.-based tour and the European-based tour reached a detente with LIV, which is funded by PIF, on June 6.
The U.S. Department of Justice and the U.S. Congress both plan to scrutinize the agreement. However, little was known of the deal between PIF and the PGA Tour and the DP World Tour until Monday, when multiple outlets reported that the sides sent a six-page document — and other information and paperwork — to the U.S. Senate Permanent Subcommittee on Investigation.
Among the items in the document, per the reports:
–The new combined operation (referred to as “NewCo”) will be run by a board with a majority voting interest controlled by the PGA Tour. That board will decide what happens with the rival LIV Golf Tour moving forward.
The executive board members are set to be PGA Tour commissioner Jay Monahan (currently on medical leave from his job), PIF Governor Yasir al-Rumayyan and PGA Tour board members Ed Herlihy and Jimmy Dunne.
–A “Communications Committee” will “facilitate a smooth business transition” and “coordinate and manage communications” between the PGA Tour, LIV and PIF.
–As a “premier corporate sponsor” of the PGA Tour, DP World Tour and other golf circuits, PIF will take on title sponsorship of one event or more.
–Valuations of all of the parties’ assets will determine the amount of PIF’s initial investment, which has previously been reported to be in the $2 billion to $3 million range.
Per the agreement: “PIF will contribute their golf-related investments and assets, including LIV, to NewCo along with a cash investment, in exchange for the issuance to PIF of an equity ownership interest in NewCo at a fair value mutually agreed by the parties.”
–Players who jumped from the PGA Tour to LIV will be allowed to return as soon as 2024, but returning could be subject “to each Tour’s disciplinary policies.” In other words, players might face some sort of sanction.
–Field Level Media