PGA Tour and PIF: A Standoff in the World of Golf
In the ever-evolving landscape of professional golf, the PGA Tour and Saudi Arabia’s Public Investment Fund (PIF) find themselves at a crossroads. The PGA Tour is steadfast in its vision of a singular premier circuit for men’s professional golf, while the PIF envisions a world where two circuits coexist. This fundamental disagreement has brought negotiations to a standstill, with both sides seemingly back at square one.
According to sources, the PGA Tour has turned down the PIF’s latest proposal to invest a staggering $1.5 billion into PGA Tour Enterprises, the tour’s for-profit entity. The catch? The PIF wants the rival LIV Golf League to remain intact. This condition has been a sticking point for the PGA Tour, which is keen on unifying the top golfers under one banner.
The PIF, which has been the financial backbone of LIV Golf since its inception in 2022, also seeks to have its governor, Yasir Al-Rumayyan, serve as co-chairman of PGA Tour Enterprises’ board. Currently, the board is chaired by former Valero Energy CEO Joe Gorder, with the legendary Tiger Woods as vice chairman.
The Guardian of London reported that the PGA Tour responded to the PIF’s proposal in a letter on Monday. Sources have previously indicated that the continuation of the LIV Golf League in its current form is a nonstarter for the PGA Tour, which is eager to see the world’s top golfers competing on a single circuit.
Despite the impasse, the PGA Tour has attempted to offer solutions that would incorporate some elements of LIV Golf into future schedules. This could include team competitions at international venues during the fall season. However, PGA Tour commissioner Jay Monahan emphasized the importance of maintaining the tour’s platform and momentum. “We will not do so in a way that diminishes the strength of our platform or the very real momentum we have with our fans and our partners,” Monahan stated at the Players Championship last month.
The latest developments follow a significant meeting at the White House on February 20, which included Al-Rumayyan, Monahan, Woods, and PGA Tour player director Adam Scott. U.S. President Donald Trump, who had previously met with Monahan and Scott in Washington on February 4, expressed hope for a resolution. “Ultimately, hopefully, the two tours are going to merge. That’ll be good. I’m involved in that too,” Trump told reporters on Air Force One.
Reports suggest that the PIF will have invested $5 billion into LIV Golf by the end of this year. Despite its innovative format featuring 54-hole tournaments, no cuts, shotgun starts, and team golf, LIV Golf has struggled to gain traction in the U.S. market, particularly in terms of corporate sponsorships and TV ratings.
Before this week’s LIV Golf League tournament at Trump National Doral in Miami, LIV Golf League captain Brooks Koepka expressed his disappointment with the league’s progress in its fourth season. Koepka, along with other PGA Tour stars like Bryson DeChambeau, Dustin Johnson, Jon Rahm, and Cameron Smith, were lured to LIV Golf with lucrative contracts exceeding $100 million.
Financial records from LIV Golf’s UK-based company, which manages its tournaments outside the U.S., revealed nearly $400 million in operating losses in 2023. However, financial data for U.S. events remains unavailable.
New LIV Golf CEO Scott O’Neil remains optimistic about the league’s future, stating that a deal with the PGA Tour isn’t essential for survival. “If the deal can help grow the game of golf, I’ll jump in with two feet,” O’Neil said. “Do we have to do a deal? No. It would be nice to do a deal, so long as we’re all focused on the same things.”
O’Neil, who isn’t directly involved in the PIF’s negotiations with the PGA Tour, expressed hope for more opportunities for the world’s best players to compete together. “The reality of the way I see the world is I see the LIV Golf League with a lot of hope and a lot of future,” he told ESPN.
The PGA Tour and the PIF had previously sued each other in federal court, but the lawsuits were dropped when they signed a framework agreement on June 6, 2023, to form an alliance aimed at reunifying the sport. Although that deal expired at the end of 2023, both parties have continued to negotiate over the past two years.
In January 2024, the PGA Tour and Strategic Sports Group, a consortium of U.S. pro sports teams and others, reached an agreement for SSG to invest up to $1.5 billion into PGA Tour Enterprises.
Originally Written by: Mark Schlabach
