PGA Tour-LIV Golf Negotiations Stagnate as Deadline Approaches

Pro golf’s grand merger is now in doubt, casting a shadow over the future of the partnership. The PGA Tour, DP World Tour, and the Saudi Public Investment Fund (PIF) had announced a preliminary agreement with a December 31 deadline for completion. However, sources familiar with the situation suggest that there has been very little progress made, making an extension of the deadline pointless.

To replace the potential $2 billion investment from PIF, the PGA Tour has been exploring partnerships with Endeavor, Fenway Sports, and other entities.

In the event that the partnership falls through, PIF is prepared to use those funds to benefit LIV Golf. This could involve reviving the lucrative offers made to PGA Tour players before LIV’s planned launch in 2022.

One of the main obstacles to the agreement is the PGA Tour’s policy board, which wasn’t fully disclosed to PIF governor Yasir Al-Rumayyan. The addition of Tiger Woods to the policy board gave the players the power to reject the deal.

Even prior to Woods’ involvement, several players on the policy board were skeptical about the framework. They felt that they were not involved in its creation and wanted to start from scratch.

The PGA Tour spokesperson declined to comment on the situation.

There has been very little progress made since the framework was announced, apart from the agreement to drop all litigation between the PGA Tour, LIV, and PIF. This decision caught lawyers on both sides off guard.

LIV is unable to re-file its antitrust lawsuit, which was dismissed with prejudice, at least on the same counts. The PGA Tour, lacking the financial resources of LIV, saw the need to end the legal battle quickly.

Surprisingly, there are three individuals who played a role in convincing Al-Rumayyan to agree to drop LIV’s lawsuit: PGA Tour Commissioner Jay Monahan, PGA Tour Board Chairman Ed Herlihy, and PGA Tour policy board member Jimmy Dunne.

The fact that the PGA Tour has not yet signed the preliminary paperwork raises doubts about the framework’s finalization. Meanwhile, there is increasing likelihood of a deal with Endeavor and other firms.

Although Monahan initially viewed LIV as a threat, he later embraced the Saudi money. This change of stance faced criticism, not only from PGA Tour players but also from the Senate’s Permanent Subcommittee on Investigations. The subcommittee held hearings questioning the need for Saudi funding given the country’s human rights record.

LIV is expected to announce its schedule soon, potentially including events that clash with the PGA Tour in 2024. This would mean that LIV players, currently suspended by the PGA Tour, would not be able to compete in their events, and vice versa.

Unless progress is made soon in finalizing the framework, this disruptive situation is likely to continue for years to come.