Framework agreement between PGA Tour, DP World Tour and PIF outlined in leaked document
- Michael Schmitt
- 27 June 2023
A document was obtained containing the framework agreement between golf's traditional powers and its wealthy new Saudi partners.
A leaked document obtained by the Associated Press has outlined the framework of the merger agreement between the PGA Tour, DP World Tour and Saudi-backed LIV Golf.
The document, signed on May 30, says a for-profit subsidiary of the US golfing body will be created to manage commercial investments and assets for all tours and will be the "entity for professional golf".
It says the traditional tours will coexist with LIV Golf, and that the PGA Tour and DP World Tour have agreed to work with LIV Golf do determine a way forward for the players who joined the breakaway tour.
The agreement says the PGA Tour and DP World Tour "will work cooperatively and in good faith to establish a fair and objective process for any players who desire to re-apply for membership... and for determining fair criteria and terms of readmission consistent with each Tour's disciplinary policies."
Currently, LIV golfers are suspended from the PGA Tour, while many were also forced to withdraw from the DP World Tour or face a series of stiff fines.
The agreement says the PGA Tour would keep a controlling interest in the new commercial entity - known for now as "NewCo" - regardless of how much Saudi Arabia's Public Investment Fund (PIF) contributes.
NewCo will conduct an "objective empirical data-driven evaluation of LIV and its prospects and potential" while also examining the benefits of team golf before deciding "how best to integrate team golf into PGA Tour and DP World Tour events going forward".
The agreement also says plans will be put in place to get the Official World Golf Ranking to recognize LIV Golf, subject to OWGR criteria and the application that LIV filed last July.
Currently, LIV fails to meet several criteria because it has no cuts and 48-man fields.
NewCo would be an umbrella for all future golf-related investments of the three groups.
It plans to create financial returns through "targeted mergers and acquisitions to globalize the sport."
Meanwhile, the PIF is set to invest in both the PGA and DP World Tours as a "premier corporate sponsor".
The document said that it hopes to reach a definitive deal by December 31, 2023.
The framework agreement is likely to be a focus of a US Senate panel on 11 July where PGA Tour commissioner Jay Monahan, Saudi Arabia's Public Investment Fund Governor Yasir Al-Rumayyan and LIV Golf CEO Greg Norman have been invited to testify.
The proposed deal has come under criticism from some US politicians, citing concerns about the risks posed by a foreign government entity assuming control over the sport.
