The two entities signed an agreement that would combine the PGA Tour and LIV Golf’s commercial businesses and rights into a new, yet-to-be-named for-profit company. The agreement includes DP World Tour, also known as the European PGA Tour.
PIF is prepared to invest billions of new capital into the new entity, CNBC’S David Faber reported on Tuesday. Terms of the deal weren’t disclosed.
The agreement — the second stunning sports deal in just months, following World Wrestling Entertainment’s merger with Endeavor Group’s UFC — will require the approval of the PGA Tour policy board, Commissioner Jay Monahan said in a memo to players that was obtained by CNBC.
“There is much work to do to get us from a framework agreement to a definitive agreement, but one thing is obvious: through this transformational agreement and with PIF’s collaborative investment, the immeasurable strength of the PGA Tour’s history, legacy and pro-competitive model not only remains intact, but is supercharged for the future,” he wrote in the memo. (...)
Rival lawsuits
Monahan said the tour looked at the game of golf “on a global basis,” as its seen more growth in the sport outside of the U.S.
Still, he acknowledged Tuesday on CNBC that there has been a lot of tensions between the two organizations, but said “the game of golf is better for what we’ve done today.”
The two organizations had filed a series of antitrust claims against the other in recent months. LIV Golf sued The PGA Tour alleging anti-competitive practices for banning its players. The tour countersued, claiming LIV was stifling competition. Disputes ensued regarding the discovery process for evidence.
The lawsuits were spurred as the upstart league had lured multiple high-profile players, such as Phil Mickelson and Bubba Watson, from the PGA Tour after the tour had banned the players from competing in LIV’s events.
On Tuesday, Mickelson tweeted, “Awesome day today” as part of a post sharing the news of the merger.
The deal comes soon after LIV golfer Brooks Koepka won the PGA Championship, one of four major titles in men’s golf.
As part of the agreement, the groups will establish “a fair and objective process for any players who want to re-apply for membership with the PGA Tour or DP World Tour” following the end of the 2023 season, according to a release.
Global golf
LIV didn’t see its matches distributed on TV in the U.S. until a few months ago, when the league signed a deal with CW Network as the exclusive U.S. broadcast partner. The CW had agreed to air 14 global events, which began in February. Terms of the multiyear deal had not been disclosed. (...)
LIV Golf, which launched in 2022 and has been spending top dollar to lure golfers, has also been the subject of controversy, criticism and political intrigue in the U.S. PIF has reportedly invested $2 billion into LIV already, and had aspirations of creating franchises and teams that could one day be sold.
Critics of LIV have also accused PIF of “sportswashing” by using the league to distract from the kingdom’s history of human rights violations.
Critics of LIV have also accused PIF of “sportswashing” by using the league to distract from the kingdom’s history of human rights violations.
by Lillian Rizzo, CNBC | Read more:
Image: Charles Laberge | LIV Golf | Getty Images
