The PGA Tour announcesa deal with FSG, the owners of Liverpool, in an update on the LIV Golf merger.
The PGA Tour has been in talks with Saudi Arabia’s Sovereign Investment Fund about a surprise merger with the LIV Golf Series, but has now decided to take negotiations elsewhere.
PGA Tour Liverpool owners have announced an agreement to renew the merger between LIV Golf and FSG.
The PGA Tour has been in talks with Saudi Arabia’s Sovereign Investment Fund about a surprise merger with the LIV Golf Series, but has now decided to take negotiations elsewhere.
The PGA Tour has confirmed it will continue negotiations with Saudi Arabia’s Sovereign Investment Fund, despite the signing of Jon Rahm, and with outside investment groups including Liverpool FC owner Fenway Sports Group. They announced that negotiations would continue.
PGA leaders have been negotiating with Saudi Arabia’s PIF all year after announcing a fiery merger last summer that would end the civil war in the Persian Gulf. But this announcement is just the framework for a deal, and a deadline is looming to remove all legitimacy.
The two sides have until December 31 to sign a deal, and the situation was further complicated by the move of Masters champion Lam to the Saudi-funded splitter last week, receiving a signing bonus of around 450 million pounds in the process. Rahm’s departure seemed like the last straw for the PGA Tour, putting the organization into a corner with few big stars left and sponsors pulling out of the event. Players on both sides have been trying to hammer out a merger deal as quickly as possible, but it appears the PGA will now look elsewhere for outside investment. In a statement released late Sunday, PGA LIV confirmed its decision to continue discussions with Strategic Sports Group, a group of investors eager to pour money into the sport to combat the growing threat. The group consists of American investors such as FSG, Tom Werner, John Henry and Tom Ricketts. In a memo sent to PGA Tour members on Sunday, the organization said an agreement with LIV could be reached quickly. The statement said: “We hope to continue discussions with PIF in the coming weeks. Additionally, the DP World Tour remains an important part of building the PGA TOUR company.
Under significant pressure, PGA Tour Commissioner Jay Monahan released an update on the LIV Golf merger.
Under significant pressure, PGA Tour commissioner Jay Monahan released an update on the LIV Golf merger (Image: Getty Images).
Announcing negotiations with SSG is a risky move for the PGA Tour as it risks violating the PIF during a period of tense negotiations. Most of the players and executives involved wanted a merger that would end the sport’s civil war. Currently, LIV players cannot earn points in the Official World Golf Ranking, limiting their eligibility for major tournaments and, in Cameron Smith’s case, the 2024 Olympics. The current impasse also limits the amount of time golf fans can watch the best players in the world competing against each other. There is also the inevitable Ryder Cup issue for players on the European team who will lose their DP World Tour cards and therefore be ineligible for selection when they take part in the Saudi Arabia division. That happened to Rome earlier this year, when Ian Poulter, Lee Westwood and Sergio Garcia were ruled out, and Rahm now looks set to face the same problem until 2025 at Bethpage in New York. Even LIV golf’s most ardent critics now feel the need for a merger, with Golf Channel’s Brandel Chamblee admitting the time has come for a deal. In Rahm’s speech following the move, he emphasized the need to resolve the issue as quickly as possible. “I hope the LIV transaction is now complete,” he said. This is definitely the best thing happening on the PGA Tour. If this situation continues, it remains to be seen whether LIV will survive. Otherwise, it looks like Rahm will have to make a strategic play for LIV to make this merger happen, as both sides have something the other wants. “Obviously the PGA Tour wants to put money in, but LIV is looking at the PGA Tour and what they see as a seat at the table, legitimacy and legacy.
“All 50 million golfers around the world know the history of the PGA Tour. They enjoy respect and recognition of trade structures, broad trade structures, and there is a lot of opposition to Saudi Arabia’s involvement in some of these practices.
“So Saudi Arabia immediately took a leadership position and felt honored and recognized to be working with the best golf organization in the world.” “They both have what they want.”
