PGA TOUR, DP World Tour and LIV golf announce agreement to reunify golf

PGA TOUR, DP World Tour and LIV golf announce agreement to reunify golf

All lawsuits filed between the three major circuits at the time the new entity is created are annulled.

The agreement establishes the common goal of promoting and growing the game globally for the benefit of all stakeholders and ends litigation

PONTE VEDRA BEACH, Florida – The PGA TOUR, DP World Tour and Public Investment Fund (LIV) today announced a landmark agreement to unify the sport of golf globally. The parties have entered into an agreement combining PIF's golf-related businesses and rights (including LIV Golf) with the PGA TOUR and DP World Tour businesses and rights into a new collectively owned for-profit entity to ensure that all stakeholders benefit from a model that offers maximum excitement and competition among the best players in the game.

In addition, PIF will make an equity investment in the new entity to facilitate its growth and success. The new entity (which we will know as TBD) will implement a plan to grow these combined commercial businesses, drive greater fan engagement, and accelerate growth initiatives already underway. With LIV Golf in the midst of its ground-breaking second season, the PGA TOUR, DP World Tour and PIF will work together to better present and jointly grow golf in the future.

In particular, today's announcement marks the end of the tangle of pending litigation between the participating parties. In addition, the three organizations will work cooperatively and in good faith to establish a fair and objective process for any player who wishes to reapply for PGA TOUR or DP World Tour membership after the completion of the 2023 season and to determine criteria. and readmission terms, consistent with the policies of each Tour.

“After two years of disruptions and distractions, this is a historic day for the game we all know and love,” said PGA TOUR Commissioner Jay Monahan. “This transformative partnership recognizes the immeasurable strength of the PGA TOUR's history, legacy and competitive model and combines with it the DP World Tour and LIV, including the concept of team golf, to create an organization that will benefit players from golf, commercial and charitable. partners and fans. Moving forward, fans can rest assured that we will collectively deliver on the promise we have always made: to promote the competitiveness of the best in professional golf, and that we are determined to secure and drive the future of the game.

Jay Monahan in file image (USA Today)

“We are pleased to move forward, in step with LIV and PIF's world-class investment experience, and I applaud PIF Governor Yasir Al-Rumayyan for his forward-thinking, collaborative vision and approach that is not just a solution to the gap in our game, but also a commitment to take it to new heights. This will usher in a new era in global golf, for the better."

“Today is a very exciting day for this special game and the people it touches around the world,” said PIF Governor Yasir Al-Rumayyan. “We are proud to partner with the PGA TOUR to build on PIF's unprecedented success and track record of delivering value and bringing innovation and global best practices to companies and industries around the world. We are committed to unifying, promoting and growing the game of golf around the world and offering the highest quality product to the many millions of lifelong fans around the world, while cultivating new fans.

“There is no doubt that the LIV model has been positively transformative for golf. We believe there are opportunities for the game to evolve while maintaining its history and lore. This association represents the best opportunity to extend and increase the impact of golf for all. We look forward to collaborating with Jay and Keith to bring the best version of the game to communities around the world."

Under the terms of the agreement, the new entity's Board of Directors will oversee and direct all golf-related commercial operations, businesses and investments of the new entity. The new entity will work to ensure a consistent schedule of events that will be exciting for fans, sponsors and all interested parties. PIF will initially be the exclusive investor in the new entity, along with the PGA TOUR, LIV Golf and the DP World Tour. Going forward, PIF will have the exclusive right to further invest in the new entity, including a preemptive right to any capital that may be invested in the new entity, including the PGA TOUR, LIV Golf and DP World Tour. The PGA TOUR will appoint a majority of the Board and will have a majority voting interest in the combined entity.

Separately, PGA TOUR Inc. will remain a 501(c)(6) tax-exempt organization and will retain administrative event oversight for those assets contributed by the PGA TOUR, including event sanctioning, competition administration, and the rules. , as well as all other "inside the ropes" responsibilities, with Jay Monahan as Commissioner and Ed Herlihy as Chairman of the PGA TOUR Policy Board. PIF Governor Yasir Al-Rumayyan will join the PGA TOUR Policy Board. The DP World Tour and LIV Golf will maintain similar administrative oversight of events on their respective Tours.

The new business entity's board of directors will include Al-Rumayyan as Chairman and Monahan as CEO; The new entity's Board will also include an Executive Committee comprised of Al-Rumayyan, Monahan, Herlihy and PGA TOUR Policy Board member Jimmy Dunne. The full Board will be announced at a later date and it is anticipated that all three founding members will have representation.

Keith Pelley, DP World Tour CEO, said: “This is a momentous day. We are delighted to not only be able to rekindle our relationship with PIF, but also have the opportunity to build on our existing Strategic Alliance partnership with the PGA TOUR. Together we will be stronger than ever and well positioned to continue to bring the game to all corners of the world. Partnering in this new entity and influencing the growth of the game for all of our DP World Tour members is energizing and exciting.”

All parties will work in the coming months to finalize the terms of the agreement, with details to be announced in due course.

Source: @PGATOUR

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