The PGA Tour and LIV Golf agreed to consolidate their commercial businesses and rights into a new, as-yet-unnamed for-profit organization. The DP World Tour, also known as the PGA European Tour, is covered under the agreement.
The Saudi Arabia Public Investment Fund, an organization under the supervision of the Saudi crown prince, is the financier of LIV Golf, which has recently been involved in legal disputes with the PGA Tour over antitrust issues. All ongoing litigation would be resolved by the agreement announced on Tuesday.
According to David Faber of CNBC, PIF is ready to inject the new company with billions of dollars in fresh money. The agreement’s terms weren’t made public.
According to Commissioner Jay Monahan’s message to players, which CNBC was able to get, the arrangement, which follows World Wrestling Entertainment’s merger with Endeavor Group’s UFC, will need to be approved by the PGA Tour policy board.
There is still much to be done to move from a framework agreement to a final agreement, but one thing is clear: with PIF’s collaborative investment and this transformational agreement, the PGA Tour’s history, legacy, and pro-competitive model not only remain intact but are bolstered for the future.
PIF Governor Yasir Al-Rumayyan stated on CNBC’s “Squawk on the Street” on Tuesday that the new board is ready to assess each proposal once the merger is complete, which he anticipates to be “in a matter of weeks.” Al-Rumayyan will preside over the board of directors.
Al-Rumayyan told Faber, “Whatever it takes, that’s… what we’re committed for.
Before a few months ago, LIV’s matches were not televised on TV in the United States. This changed after the league agreed to make the CW Network its sole U.S. broadcast partner. 14 international events that started in February were to be broadcast on The CW. The multiyear agreement’s terms had not been made public.
75% of the CW Network is owned by Nexstar Media Group. The calendar for the 2023 LIV Golf events won’t change, a business official stated in a statement on Tuesday.
In the release, Nexstar said, “This is an exciting day to unify and expand the game of golf. This year, the top golfers in the world will compete in seven more thrilling tournaments, which will be webcast.
rival court cases
Golf has seen more growth outside of the United States, according to Monahan, who claimed that the circuit looked at the sport “on a global basis.”
Even so, he acknowledged on CNBC on Tuesday that there had been many conflicts between the two groups, but added that “golf is better for what we’ve done today.”
In recent months, each group had brought a number of antitrust lawsuits against the other. LIV Golf filed a lawsuit against The PGA Tour, citing anti-competitive behavior in the exclusion of its players. In a countersuit, the tour said that LIV was restricting competition. There were disagreements on the evidence discovery procedure.
The cases were prompted by the fact that several well-known golfers, including Phil Mickelson and Bubba Watson, were tempted away from the PGA circuit by the fledgling league after the circuit forbade them from participating in LIV’s events.
Mickelson tweeted “Awesome day today” on Tuesday in connection with a post announcing the merger.
The agreement was reached soon after Brooks Koepka of LIV Golf won the PGA Championship, one of the four major golf championships.
In accordance with the deal, the organizations would provide “a fair and objective process for any players who want to re-apply for membership with the PGA Tour or DP World Tour” after the 2023 season.
Increasing contention
LIV Golf, which debuted in 2022 and has been actively courting golfers with lavish advertising, has also generated debate, ire, and political intrigue in the United States. PIF reportedly contributed $2 billion to LIV already and hoped to build clubs and teams that might be sold in the future.
PIF has been accused of “sportswashing” by LIV detractors by utilizing the league to draw attention away from the kingdom’s past of human rights abuses.
Families of those killed in the terrorist attacks on September 11, 2001, have protested the league, sometimes outside of tournaments. Osama Bin Laden, the mastermind of the attacks, was born in Saudi Arabia, and 15 of the 19 hijackers on September 11 were Saudi citizens. Although investigations did not reveal that Saudi officials were involved in the attacks, U.S. officials have concluded that Saudi citizens contributed to the funding of the terrorist organization al-Qaeda.
In a statement on Tuesday, the organization 9/11 Families United claimed they were “shocked and deeply offended” by the merger.
Mr. Monahan spoke about knowing folks who had lost family ones in the 9/11 attacks last summer. He then questioned aloud on national television whether LIV Golfers ever had to apologise for being a PGA Tour member. They do now, just as he does,” said Terry Strada, chair of 9/11 Families United, whose husband Tom perished in the North Tower of the World Trade Center. “PGA Tour executives should be ashamed of their selfishness and hypocrisy. As it seems their sympathy for our loved ones was only window-dressing in their pursuit of money – it was never to honor the wonderful game of golf – Commissioner Monahan and the PGA have deceived our whole 9/11 community.
The claim made reference to Monahan’s claim that he had discussed these concerns with tour players in an interview with CBS Sports.
During the interview, Monahan stated, “I think you’d have to be living under a rock not to know there are significant implications.” “Have you ever had to apologize for being a member of the PGA tour?” I would ask any players who have left or who would consider leaving.
Donald Trump, a former president who has held several LIV Golf tournaments at his golf clubs, has defended the competitions by making the untrue claim that “nobody’s gotten to the bottom of 9/11.” Trump also asserted on Truth Social in the previous year that a combination between LIV and The PGA Tour was unavoidable.
On his Truth Social platform on Tuesday, Trump commented on the merger: “Great news from LIV Golf. a significant, gorgeous, and elegant event for the fantastic world of golf. Congratulations to all.
