The PGA Tour is still in talks with Saudi Arabia’s Public Investment Fund about their main deal, but it appears the US-based tour is looking elsewhere for investors.
The PGA Tour is considering welcoming more investment from new Saudi allies, with doubts over its proposed merger with LIV Golf.
In June, the PGA Tour confirmed it had reached a framework agreement with the Saudi Arabian Public Investment Fund (PIF) to end the ugly dispute between the Tour and the LIV structure. Since then, the two sides have continued to negotiate, with a deadline set for December 31 to reach an agreement.
As talks continue, the US-based league has provided an update to players, confirming its intention to reach a deal with PIF, but admitting it is open to offers Investment comes from elsewhere.
According to ESPN, the memo said:
“We remain focused on reaching a final agreement with PIF and DP World Tour, but it is not surprising that these negotiations have resulted in approached and unsolicited proposals from a number of other interested investors. All this activity strengthens the Tour’s strong position and our growth potential. »
According to the report, there have been doubts about the deal with Saudi backers, with a final agreement “far from being done”. If negotiations fail, the Tour will have many partners ready to replace PIF.
“There is no shortage of interest from big-money organizations to invest money in exchange for a piece of the PGA Tour,” an ESPN source said. “LIV Golf is not going away. Therefore, the tournament will need deep pockets to continue to face the Saudis… “I don’t think there will be any problem for them [the PGA Tour] in finding partners who are wealthy enough.” The US Department of Justice’s antitrust agency is currently reviewing the deal but is said to have encountered a number of problems.
Source commented:
“I don’t think that will happen. I don’t think the Department of Justice will approve a merger with the PGA Tour. And I don’t think the Saudis are happy with the amount of influence they have in a merged entity.” For these reasons, I don’t think the merger will take place.
Bloomberg reported last week that the December 31 deadline would be extended, causing negotiations to take longer than expected. Another obstacle both sides are said to have encountered is the contribution of PGA Tour players, who are said to be seeking a stake in the joint organization. Players are advised by investment bank Raine Group.
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