The PGA Tour aims to establish a single unified premier circuit in men`s professional golf.
However, Saudi Arabia`s Public Investment Fund (PIF) envisions two separate prominent circuits. This difference in vision has stalled recent discussions aimed at reunifying the sport.
Sources have confirmed that the PGA Tour declined the PIF`s latest proposal, which involved a $1.5 billion investment into PGA Tour Enterprises, the tour`s for-profit arm. A key condition of the offer was that LIV Golf, the rival league funded by PIF, would continue to operate independently.
The PIF also desires 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 serves as vice chairman.
Reports indicate that the PGA Tour responded to the PIF`s offer in a letter earlier this week.
Previously, sources informed ESPN that the PGA Tour considers the continuation of LIV Golf in its current format as unacceptable. The PGA Tour`s preference is to have the world`s top golfers competing on a single tour.
Sources suggest that the PIF is firm in its stance and wants team golf to be an integral part of the sport`s future if an agreement is reached. The PGA Tour has explored alternatives, proposing potential future schedules 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 shared urgency to reach a resolution, similar to that of the fans.
These recent communications follow a four-hour meeting held at the White House on February 20th, involving Al-Rumayyan, Monahan, Woods, and PGA Tour player director Adam Scott. Prior to this, U.S. 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 optimism about bringing the PGA Tour and LIV Tour together.
Reports indicate that the 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 cuts, shotgun starts, and team format, has faced challenges in gaining traction in the U.S. in terms of corporate sponsorships and television viewership.
Brooks Koepka, a LIV Golf League captain, acknowledged before a recent tournament that he had anticipated LIV Golf to have made greater 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 notable players who moved to LIV Golf and were subsequently suspended by the PGA Tour include past major champions Bryson DeChambeau, Dustin Johnson, Jon Rahm, and Cameron Smith.
Financial records from LIV Golf`s UK-based company show nearly $400 million in operating losses in 2023. Financial data for U.S. events is not publicly available.
LIV Golf`s new CEO, Scott O`Neil, stated that his league does not necessarily need a deal with the PGA Tour to survive. He added that a deal would be welcome if it helps grow the game of golf, but emphasized his satisfaction with LIV Golf`s current progress 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 to see the world`s best players 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, discussions have continued.
In January 2024, the PGA Tour reached an agreement with Strategic Sports Group (SSG), a consortium of U.S. sports teams, for an investment of up to $1.5 billion into PGA Tour Enterprises.
