The PGA Tour and Saudi-backed LIV Golf are in dynamic discussions, according to a person familiar with the matter, a year after the two entities stunned the world by announcing on CNBC that they had agreed in principle to join forces.
Talks between the tour and the Saudi Public Investment Fund, which supports LIV Golf, are “extremely dynamic,” the person said.
The newly formed seven-member PGA Tour transaction committee – which includes professional golfers Rory McIlroy and Tiger Woods, as well as Fenway Sports Group founder John Henry – and PIF representatives met in person and remotely every Monday, Wednesday and Friday of the month, the person added.
The group will meet in person on Friday in Fresh York, except McIlroy, who will join remotely.
A PGA Tour representative declined to comment. Representatives of LIV and PIF did not respond.
When PGA Commissioner Jay Monahan and Saudi PIF Governor Yasir Al-Rumayyan announced the proposed merger on CNBC last June, many were surprised after a bitter legal dispute between the two competing leagues.
The proposed deadline for concluding the transaction, originally set for December 31, 2023, has been extended. The tour participants have since also agreed to include US investors.
The contract has not been finalized. But the sides exchanged terms of the deal and mostly agreed on the financial part of the deal, a person familiar with it said, with the Saudis and a consortium of investors agreeing to contribute another $1.5 billion each to the trip. The structure of the deal will reportedly be similar to the deal with the Strategic Sports Group consortium of investors. The sites are now focusing on product-related decisions regarding players, schedules, tournaments and media rights, the person added.
The discussions do not mean an agreement is imminent, but the pace of the process has increased as Al-Rumayyan sometimes attends weekly meetings, the person added.
DealBook “The Fresh York Times” before reported on discussions.
Over the course of the year, the route attempted to become more attractive to players and prevent defectors from competing with LIV by rewarding them for their loyalty to the organization. The tour increased tournament prize money and created PGA Tour Enterprisesa fresh commercial venture that will inject more than $1.5 billion in equity capital into players.
“By making PGA TOUR members owners of their league, we strengthen our players’ collective investment in the success of the PGA TOUR,” Monahan said at the time.
In delayed January, the tour announced fresh capital from a group of high-profile investors led by Fenway Sports Group. SSG will pump $1.5 billion into the route and commit another $1.5 billion if the deal with the Saudis is finalized.
In May, Jimmy Dunne, who was considered one of the architects of the agreement, abruptly resigned, expressing frustration with the lack of progress.
The source said that when Dunne was not included on the list company managementhe became frustrated and felt that he was no longer needed.
Before the leagues said they would join forces last June, PIF lured PGA Tour golfers, including star Phil Mickelson, to LIV with offers worth hundreds of millions of dollars.
Since then, the drawn-out and tumultuous deal process has sparked a backlash from players, consumers and U.S. lawmakers, who have also probed and questioned PGA Tour executives. If completed, the merger could radically change the landscape of professional golf.
After LIV lured Tour players with big-money deals, Monahan said the Tour was looking at golf “from a global perspective” and said the merger would benefit the sport.
Many critics have accused LIV, which launched in 2022, of “sports laundering,” or spreading influence through sports to distract attention from human rights abuses in Saudi Arabia.
Once clear boundaries were set, players expressed frustration with the proposed deal, which led to increased financial incentives for golfers.
