In a Tuesday bombshell, CNBC reported that the PGA Tour, DP World Tour, and the Saudi-funded LIV Golf tour have agreed to a merger.
The rival tours have been entangled in ongoing litigation ever since the PGA Tour banned players that defected to LIV Golf. Now it seems these players will be competing in the same fields once again.
According to a joint press release by the PGA Tour, DP World Tour, and the Saudi Arabian Public Investment Fund, the merger will end all pending litigation between the entities.
The press release states that the newly unified entity will be “collectively owned” with the PIF holding exclusive rights to further investment in the joint entity. The PGA Tour will keep its status as a tax exempt 501(c)(6). Notably, the PGA Tour will appoint a majority of the new Board for the joint entity, and will hold majority voting power. However, PIF’s Governor Yasir Al-Rumayyan will serve as Chairman, while PGA Tour commissioner Jay Monahan will serve as CEO.
Monahan stated in the press release, “After two years of disruption and distraction, this is a historic day for the game we all know and love. This transformational partnership recognizes the immeasurable strength of the PGA TOUR’s history, legacy and pro-competitive model and combines with it the DP World Tour and LIV – including the team golf concept – to create an organization that will benefit golf’s players, commercial and charitable partners and fans.”
The unified tour, which is yet to be named, will combine aspects of both the PGA Tour and LIV Golf’s team structure to create “a cohesive schedule for fans, sponsors, and all stakeholders.”
Prior to the contentious relationship between the rival golf leagues, some speculated that Saudi-funded golf competitions could be additive to the PGA Tour schedule, rather than a direct competitor. It seems likely that the new schedule will reflect this.
Earlier this year, the PGA Tour announced a new format for the fall “swing season” that would stake golfers looking to gain their tour cards in fields with players fighting to keep their PGA Tour status. This part of the season seems to be a natural fit for large purse, limited field, team events that would likely fall under the “LIV” umbrella.
There is certainly still a lot to iron out regarding the merger. Most immediately, how both entities will finish their current seasons. But looking into the near future, it is unclear how players that chose to defect to LIV will be on-boarded back to the PGA Tour.
For a sport not usually known for adaptation and change, the last two years have been seismic. Both entities certainly realized, like with all professional sports leagues, a monopoly benefits both the owners and consumers. The most talented golfers in the world will once again compete under one umbrella, and that’s good for golf.
Read the full press release here.
