Work to finalise agreement between PGA and DP tours, PIF continues
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PGA Tour Commissioner Jay Monahan presents Viktor Hovland of Norway with the Tour Championship trophy.
PHOTO: AFP
NEW YORK – The PGA Tour is continuing to work on an investment agreement with Saudi Arabia’s Public Investment Fund (PIF), despite interest from other groups.
Sports Illustrated obtained a letter on Tuesday from commissioner Jay Monahan to the tour’s players, which said an agreement with the Saudi fund is the focus of the PGA Tour.
Fenway Sports Group, owner of the Boston Red Sox and Liverpool, reportedly recently made overtures about a significant investment, alongside other high-profile American investors.
The PGA Tour had announced on June 6 plans for a financial agreement with the DP World Tour and PIF, which funds the LIV Golf League.
“We continue to remain focused on our negotiations towards a definitive agreement with PIF and the DP World Tour as our priority,” the memo said.
“Progress has been deliberate, given the complex nature of the potential agreement, and we will keep you apprised of the progress.”
Monahan also acknowledged the interest from other parties.
“Additionally, as you know, the framework agreement with PIF and the DP World Tour generated unsolicited – although not surprising – interest from numerous outside potential investors,” he said.
“The opportunity to potentially participate in the transformative growth of the PGA Tour for the first time brought forth dozens of inbound prospects, which were all initially vetted by the Tour’s investment bank, Allen & Company.
“Many of those prospects moved forward to a diligence review – with Tour management and Allen & Company working together with the potential minority investors’ representatives – and we then received significant, formal proposals that demonstrate the power of the PGA Tour brand, its player and our commercial opportunity.”
Later on Tuesday, the tour released its own update of the situation on its website, which added that it “has designed a potential programme” to award players with equity in PGA Tour Enterprises, the for-profit organisation set to be formed in a definitive agreement.
“This would be a unique offering in professional sports, as no other league grants its players/members direct equity ownership in the league’s business,” Monahan said.
“We recognise – as do all of the prospective minority investors who are in dialogue with us – that the PGA Tour will be stronger with our players more closely aligned with the commercial success of the business.”
PGA Tour policy board member Jimmy Dunne, an architect of the framework agreement with PIF, had floated the equity idea as a way to reward players who did not defect from the tour for a guaranteed payday from LIV Golf.
The PGA Tour, DP World Tour and PIF have set a Dec 31 deadline to finalise an agreement. REUTERS
