PGA Tour, LIV Golf Arrangement Remains Unclear as December Deadline Looms
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As expected, there has been virtually no definitive information coming out about the "framework agreement" between the PGA Tour, DP World Tour and the Public Investment Fund of Saudi Arabia, which was announced June 6. That move that shook the golf world has a Dec. 31 deadline for resolution, although it is certainly possible it can be extended.
The small details released called for a separate for-profit company called PGA Tour Enterprises to be formed that operates outside of the PGA Tour’s normal non-profit entity.
How LIV Golf is folded in or exists in the future is among the big questions. So is how much the PIF invests in the new venture and if that will include any investment in the PGA Tour in the form of sponsorship money.
Expect to hear more from PGA Tour commissioner Jay Monahan in the weeks ahead regarding the Tour's new arrangement with LIV Golf.
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Meanwhile, Bloomberg News reported last week that "high-profile" investors are being courted by the PGA Tour to help ease political opposition to the deal.
U.S. lawmakers have pushed back on the deal, citing too much influence by an international entity. It's possible the Tour sees other equity investment as a way to quell those concerns. Or, it could also be possible the Tour is looking for such investment in case the deal with the PIF does not materialize.
"Throughout 2023, the PGA Tour has demonstrated its strength, reach and value as an enterprise," the Tour said in a statement to Bloomberg. “Our focus continues to be on finalizing an agreement with the Public Investment Fund and the DP World Tour, however, our negotiations have resulted in unsolicited interest from other investors."
PGA Tour players would ultimately have to approve a deal with the PIF in the aftermath of the framework agreement which caught them by surprise. Tiger Woods was also given a spot on the PGA Tour Policy Board following the surprise announcement.
The PGA Tour has announced its schedule for 2024, with LIV Golf expected to do so soon with a 14-tournament league slate that is expected to begin in February. If a deal is completed, nothing would conceivably occur until 2025. And if it lingers into next year with an extension, it’s possible a new-look entity would not begin until 2026.
LIV Golf has pledged to continue operating as is if there is no agreement or if the negotiations are extended. The full schedule is not official, but negotiations have taken place with future venues into 2025 as well as discussions about adding to the 12-team setup.