An explosive report from ESPN reveals what the PGA Tour plans to do if negotiations with PIF/LIV Golf break down at any point.
Report says PGA Tour-PIF deal ‘unlikely to happen’
According to ESPN’s Michael Schlabach, PIF representatives are “moving ahead” by merging the golf team into a new for-profit golf company and also want more control over the company.
A memo was sent to PGA Tour members ahead of the Shriners Children’s Open, providing a small update on how negotiations are going with backers of LIV Golf.
The deadline is December 31 to conclude negotiations on the framework agreement, but this date could be extended into the new year. Jason Gore, PGA Tour director, wrote to players:
“We remain focused on reaching a definitive agreement with PIF and DP World Tour, but it is no surprise that these negotiations have resulted in unwanted moves and proposals from some investors. other investors are interested. All this activity reinforces the strong position of the Tour and our potential for growth.”
Gore hinted that the PGA Tour would look for other sources of potential investment.
According to ESPN, at least 10 private equity groups and other investors have discussed investing in the PGA Tour.
If negotiations with the Saudi PIF fail, the trip hopes to secure $2 billion in war funding.
A source told the publication:
“I don’t think that will happen. I don’t think the Department of Justice will approve the merger with the PGA Tour. And I don’t think the Saudis are happy with how little influence they will have in a merged entity. For these reasons, I don’t think the merger will happen.”
The framework agreement between the PGA Tour, PIF and DP World Tour was announced on June 6.
This comes after nearly a year of unprecedented disruption in men’s professional golf.
PGA Tour commissioner Jay Monahan has been heavily criticized and accused of hypocrisy after attempting to emotionally blackmail members into not participating in a rival tournament. Monahan was forced to temporarily step away from his role after experiencing health problems.
The man himself later confirmed that he was worried by the backlash over the announcement.
Monahan and top PGA Tour executives reached a framework agreement after participating in a series of secret meetings with PIF Governor Yasir Al-Rumayyan.
Reports claim that Monahan only needed 10 minutes with Al-Rumayyan before trusting him.
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