The parties signed an agreement to merge the golf-related activities and rights of the Saudi Public Investment Fund, including the fund-backed “LIV Golf”, with the businesses and rights of the Professional Golfers’ Association “PGA Tour” and the DP World Tour. . , in a new, collectively owned, for-profit entity, to ensure that owners benefit from a model that provides maximum excitement and competition among the best players in the game.
The Public Investment Fund said in its statement that it will make a capital investment in the new entity to facilitate its growth and success.
According to the release, the new entity, to be named later, will implement a plan to grow this joint venture, improve fan engagement in the game, and accelerate growth initiatives already underway.
With this agreement, the PGA Tour and LIV Golf have agreed to terminate all legal proceedings between them, and further, all three parties will work cooperatively and in good faith to establish fair and objective procedures for any player who wishes to present re-apply for Association Tour or DP World Tour membership after the end of the 2023 season.
PGA Commissioner Guy Monahan said: “After two years of turmoil and conflict, this is a historic day for the game we all know and love. This partnership demonstrates the tremendous strength of history, the legacy and pro-competitive model of the PGA, and brings together the DP World Tour and LIV Golf”, to create an entity that benefits golfers, business and charitable partners and fans. Now, fans can be sure that collectively we will deliver on the promise we have always made to improve the competition. in professional golf and we are committed to securing and driving the future of the game.”
In turn, the Governor of the Public Investment Fund, Yasser Al-Rumayyan, said: “We are committed to unifying, promoting and developing the game of golf around the world and to providing high quality products to millions of longtime fans around the world, while fostering new audiences.”
Under the terms of the agreement, the new entity’s board of directors will oversee and direct all golf-related business, corporate and investment operations.
The new entity will also ensure a cohesive calendar of events that will be exciting for fans, sponsors and all stakeholders.
According to the press release, the Public Investment Fund will initially be the exclusive investor in the new entity, along with the Association of Golf Professionals, “LIV Golf” and the DP World Tour. After that, the Fund will have the exclusive right to increase its participation in the new entity, including the right of pre-emption Any investment in the new entity, in the Association, “LIV Golf” and the DP World Tour.
Under the agreement, Saudi Public Investment Fund Governor Yasser Al-Rumayyan will join the new entity’s board of directors and oversee and direct all golf-related affairs, business operations and investments, Monahan assuming the position. of CEO.
DP World Tour and LIV Golf will also retain oversight of event management on their respective tours.
For his part, Keith Bailey, CEO of DP World Tour, said, “Partnering with this new entity and influencing the growth of the game for all DP World Tour members is positive and exciting.
The statement concluded that all parties will work in the coming months to finalize the terms of the agreement and announce them at the appropriate time.
It should be noted that all parties to the partnership have broadcast deals and sponsorship deals worth billions of dollars.
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