Players returning from LIV Golf are part of Saudis’ PGA Tour agreement
The PGA Tour and European Tour have agreed to work with Saudi backers from LIV Golf to decide how defectors can return to the rival league and what kind of punishment they should receive, according to a framework agreement obtained by The Associated Press.
The agreement also said that the for-profit company to be formed by the PGA Tour and the Saudis will be the “professional golf entity” and that the tours will co-exist with LIV Golf.
The framework agreement, signed May 30, was among documents Senator Richard Blumenthal, D-Conn., requested for a July 11 hearing in Washington. Blumenthal chairs the Senate Permanent Subcommittee on Investigations.
“Our goal is to expose the facts about what happened in the PGA Tour’s deal with the Saudi Public Investment Fund and what the Saudi acquisition means for the future of this cherished American institution and our national interest,” Blumenthal said. last week.
The PGA Tour has said it would participate, though it was not clear if Commissioner Jay Monahan would attend. He stepped down on June 13 – a week after the stunning deal was announced – due to a “medical situation” and handed over day-to-day operations to two executives.
LIV Golf returns to Spain this week, finishing at least the 2023 season, if not beyond. The agreement states that the PGA Tour and the European Tour “will work together in good faith to establish a fair and objective process for all players who wish to reapply for membership… The Tour’s disciplinary policy. “
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The PGA Tour has suspended players after participating in a LIV event, as per the tour’s policy they did not require releases. The suspensions are believed to last at least until the 2024 season.
The AP previously reported on assurances in the agreement that the tour would retain a controlling interest in the new commercial entity — tentatively known as “NewCo” — regardless of how much Saudi Arabia’s Public Investment Fund contributes.
The framework agreement sent to Blumenthal lacks details that all three parties are still working out, such as the future of LIV Golf.
NewCo must conduct an “objective empirical, data-driven evaluation of LIV and its prospects and potential” and assess the benefits of team golf and then decide “how best to integrate team golf into PGA Tour and DP World Tour events in the future.” agreement says.
Monahan, as CEO of the new entity, would direct the plan and strategy of NewCo’s business, including LIV.
The second paragraph of the six-page agreement referred to the Saudi fund and two lead tours establishing a global golf partnership and “unifying the game.” It later mentions the new entity’s plan to create financial returns, “including through targeted mergers and acquisitions to globalize the sport.”
The PGA Tour and the European Tour already have an alliance and other tours such as Japan and South Africa have similar agreements. The Asian Tour is affiliated with LIV Golf.
Tours, PIF team up to recognize LIV Golf in official rankings
The agreement also says that the tours and the PIF would work together to try to have the Official World Golf Ranking recognized LIV Golf, although that would be subject to the OWGR criteria and the application LIV submitted last July. LIV doesn’t meet several criteria, in part because the events lack cuts and 48-man fields.
The PIF, along with investments in the new commercial entity, would make a financial investment as the “initial corporate sponsor” of the PGA Tour or European tour, invest to become a title sponsor on one of the tours, and contribute to a program aimed at letting the game to grow.
The agreement also included a timeline to reach a final deal by December 31. If not done by then, the parties may agree to extend the deadline or return to business as usual.
An important part of the agreement was to dismiss all lawsuits – the antitrust suit against the PGA Tour and the tour countersuit against LIV Golf in which the PIF was a co-defendant. A federal judge in California dismissed those lawsuits last week.
The PGA Tour board has a previously scheduled meeting in Detroit on Tuesday, though board members are expected to take no action as so many details remain to be worked out. Also, the Justice Department is still examining the agreement, part of a review that began last summer shortly after LIV Golf launched.
