PGA Tour, DP World Tour agree to merge with Saudi-backed rival LIV Golf

NEW YORK – Ending a bitter split in men’s professional golf, the PGA Tour and LIV Golf – the insurgent league bankrolled by billions of dollars from Saudi Arabia’s sovereign wealth fund – announced on Tuesday that they had agreed to a merger.

The announcement was at once stunning – the two sides had angrily clashed for months in litigation that will now draw to a close – and an end result that many in golf had believed was a distinct possibility from the time LIV Golf burst on to the scene in 2022.

In a joint statement with the DP World Tour, which is also covered by the deal, the Public Investment Fund (PIF) and the PGA Tour said the former rivals would “implement a plan to grow these combined commercial businesses, drive greater fan engagement and accelerate growth initiatives already under way”.

“After two years of disruption and distraction, this is a historic day for the game we all know and love,” said PGA Tour commissioner Jay Monahan. 

“Going forward, fans can be confident that we will, collectively, deliver on the promise we’ve always made – to promote competition of the best in professional golf and that we are committed to securing and driving the game’s future.”

Under the terms of the tentative agreement, the PIF will at first be the exclusive investor in the blended operation, along with the established tours and LIV Golf.

The deal will combine PIF’s golf-related commercial businesses and rights (including LIV Golf) with the commercial businesses and rights of the PGA Tour and DP World Tour, formerly known as the European Tour.

It will form a new, collectively owned, for-profit entity. Monahan is expected to be the new group’s chief executive officer, with Yasir Al-Rumayyan, the wealth fund’s governor, installed as its chair.

LIV charged into professional golf in 2022, luring some of the world’s most prominent players, including Brooks Koepka, Dustin Johnson and Phil Mickelson, with guaranteed contracts sometimes said to be worth US$100 million (S$135 million) or more and tournament prize funds that were the richest in golf history.

The PGA Tour, long the dominant force in professional golf, furiously retaliated and argued that the Saudi-backed league was compromising the sport’s integrity and acting as little more than a front for Saudi ambitions to repair the kingdom’s reputation.

However, Al-Rumayyan said on Tuesday: “There is no question that the LIV model has been positively transformative for golf. We believe there are opportunities for the game to evolve while also maintaining its storied history and tradition.

“This partnership represents the best opportunity to extend and increase the impact of golf for all.”

LIV’s signing of players, including the likes of European stars Lee Westwood, Sergio Garcia, Ian Poulter and Henrik Stenson, plus their American counterparts, caused a rift in relationships. They resigned their memberships from the PGA and DP circuits and became ineligible for this year’s Ryder Cup.

Stenson had been selected as captain of the European team for the matches in Rome but when he joined LIV, he was sacked and replaced by Luke Donald.

Such conflict is likely to end with a process put in place for any LIV players to reapply to join the PGA and DP Tours following the 2023 season.

The news sparked immediate reactions from former US President Donald Trump, whose golf courses have staged LIV tournaments, and those in the fraternity.

“Great news from LIV Golf. A big, beautiful, and glamourous deal for the wonderful world of golf. Congrats to all!!!” said Trump.

Six-time Major winner Mickelson, one of the pioneers of LIV Golf, tweeted, “Awesome day today”, while two-time Major champion Collin Morikawa was puzzled and said in jest: “I love finding out morning news on Twitter.”

American golfer Michael Kim was also stunned by the news, saying: “The hell is going on? Very curious how many people knew this deal was happening. About 5-7 people? Player run organisation right?” NYTIMES, REUTERS