In New Memo to Players, PGA Tour Says Focus Remains on Closing Deal with LIV Golf's Backers
In a new memo to players, Jay Monahan reiterated that the framework agreement negotiations with Saudi’s Public Investment Fund are still underway and outside investor interest is being handled accordingly.
The message comes after what the commissioner described as a “productive” PGA Tour Policy Board meeting. Tiger Woods, who joined the PGA Tour policy board earlier this summer, was in attendance.
Sports Illustrated received a copy of the memo in which Monahan addressed the interest from outside investors in the future of the PGA Tour. Fenway Sports Group and Endeavor are just some of the companies that have reportedly been in discussion with the PGA Tour in the midst of its negotiations with the PIF, the backer of LIV Golf. Last month, Endeavor’s president revealed that their offer to partner with the PGA Tour was declined.
A memo from Jay Monahan reiterates that closing a deal with the PIF is the PGA Tour's focus
John David Mercer/USA TODAY Sports
But Monahan maintained that a “definitive agreement” with the PIF is their central focus. The deadline for a finalized deal is Dec. 31, 2023, however, it can be extended. The PGA Tour’s framework agreement with the PIF and the DP World Tour was first announced on June 6.
“We continue to remain focused on our negotiations toward a Definitive Agreement with PIF and the DP World Tour as our priority. Progress has been deliberate given the complex nature of the potential agreement, and we will keep you apprised of the progress, with continued input and direction from your Player Director and player advisor Colin Neville,” the memo read.
Monahan then detailed how the Tour is evaluating and handling outside interest from potential “minority” investors. According to the commissioner, “dozens” came forth with proposals.
“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. 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,” Monahan wrote.
After each potential investor was reviewed by the Tour, the list was pared down based on a set criteria.
“In the Policy Board meeting, we reviewed these remaining bids with the Independent Directors and Player Directors — with input from Allen & Co and The Raine Group — and agreed to continue the negotiation process in order to select the final minority investor(s) in a timely manner,” the statement read.
In conjunction with the update about outsider investment, the commissioner announced that when the PGA Tour’s new for-profit business is up and running, players will have an opportunity to own equity in the company.
“At the point we secure outside investment, 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,” the memo read. “We recognize — as do all of the prospective minority investors who are in dialogue with us — that the PGA Tour will be stronger with out players more closely aligned with the commercial success of the business.”
Monahan also revealed that Patrick Cantlay was reappointed as Player Director.
Additionally, a new Independent Director was selected—Joe Gorder, the Executive Chairman of Valero Energy Corporation, which has been a longtime sponsor of the PGA Tour. Gorder will fill the role that was previously held by Randall Stephenson. The former AT&T executive resigned from the PGA Tour policy board in July, citing “serious concerns” with the Tour’s agreement with the Saudi PIF.