The world of professional Golf as we know it today has officially changed.
The PGA Tour made a groundbreaking announcement on Tuesday. It formed a new entity to unify golf, with the Saudi Arabia Public Investment Fund.
The PGA Tour released the following statement: “The parties signed an agreement that combines PIF’s golf-related businesses and rights (including LIV Golf), with the commercial business and rights of PGA Tour and DP World Tour to create a new, jointly owned, for profit entity. This will ensure that all stakeholder benefit from a system that provides maximum excitement and competitiveness among the best players in the game.”
PIF will invest in the new entity, which will remain unnamed “to facilitate its success and growth” and initially will be the sole investor along with the PGA Tour LIV Golf and DP World Tour. PIF also has the exclusive right and first refusal to invest further in the new entity.
The PGA Tour is responsible for appointing a majority on the Board, and will hold a voting majority in the new entity. Al-Rumayyan will be the Chairman of the Board of Directors and Monahan, Chief Executive Officer of the new entity.
LIV Golf, which is funded solely by the Public Investment Fund of Saudi Arabia, has been criticized for years as a way to sportwash Saudi Arabia’s human rights record. Saudi Arabia is accused of a wide range of human rights violations, including torture, political killings, forced disappearances, and inhumane treatment for prisoners. The Saudi royal family, as well as the Saudi government, were accused of being involved in the murder and torture of Jamal Khashoggi. Khashoggi was a Saudi columnist and Washington Post journalist.
The circuit, led by Greg Norman with financial backing from Saudi Arabia’s Public Investment Fund, has been a pain in the Tour for over a year. A merger would put an end to all litigation between the two sides.
In the release, it was stated that the PGA Tour, DP World Tour & LIV Golf will “work in good faith and cooperatively” to create a fair application process for players who wish to reapply for membership after the 2023 season.
Jay Monahan, PGA Tour commissioner, said: “After two years’ disruption and distraction this is a historical day for the sport we know and love.” This transformational partnership recognizes PGA Tour history, legacy, and pro-competitiveness model, and combines it with DP World Tour, LIV, and the team golf concept to create an organisation that will benefit players, commercial partners, and fans. Fans can rest assured that, going forward, we will deliver on our promise to promote the best of professional golf competition and to secure and drive the game’s long-term future.
Yasir al-Rumayyan, Governor of PIF, said: “Today marks a special day for the game and all the people who are touched by it around the globe.” “We are excited to partner with PGA Tour and leverage PIF’s unmatched success and track records of unlocking value, bringing innovation and best practices to businesses and sectors around the world. We are committed unifying, promoting, and growing the sport of golf worldwide and offering the best-quality product to millions of longtime fans while cultivating new ones.
There is no doubt that the LIV has positively transformed golf. We think there are many opportunities for golf to continue its rich history and traditions while still evolving. This partnership is the best way to increase and extend the impact of golf. “We look forward to working with Jay and Keith in order to bring the most exciting version of golf to communities all over the world.”
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By: Adam Woodard
Title: PGA Tour merges with Saudi Arabia-backed rival LIV Golf to form new global golf entity
Sourced From: golfweek.usatoday.com/2023/06/06/pga-tour-liv-golf-news-merge-global-entity/
Published Date: Tue, 06 Jun 2023 14:19:18 +0000
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