In an unprecedented move that marks a significant milestone in the sport's history, PGA Tour and Liv Golf have agreed to merge. This merger follows a period of tension and competition between the two golf organizations that has lasted over a year. This partnership represents a significant shift in the golf industry, bringing together two of the most prominent organizations in the sport.
The Impetus of the Merger
The decision for this merger comes a year after PGA Tour Commissioner Jay Monahan declared Liv Golf an "irrational threat" to the sport. The PGA Tour, headquartered in Ponte Vedra Beach, and Liv Golf, backed by the Saudi Arabian sovereign wealth fund, have now agreed to join forces and form a new for-profit entity.
The Structure of the New Entity
The PGA Tour will hold a majority voting interest in the combined entity and appoint the majority of the Board. This arrangement combines the commercial and business rights of the PGA Tour, the European Tour, and the Saudi Public Investment Fund, creating a dynamic model that benefits all stakeholders and enhances competition among the world's top golf players.
Investment and Litigation Settlement
The Saudi fund will invest capital into the new entity, whose name is yet to be determined. This deal also brings litigation between Liv and the Tour to an end, opening up a new chapter in their relationship. Players who had left the European Tour or the PGA Tour for Liv will have a process to reapply to the PGA after the 2023 season.
The Future of the PGA Tour
Despite the merger, PGA Tour Inc. will continue its role as a nonprofit that oversees Tour events. The Board of this organization will include Yasir Al-Rumayyan, the Saudi Public Investment Fund Governor, and will be chaired by Ed Herlihy. The parent organization will have Jay Monahan serve as its CEO, and its Board will comprise Al-Rumayyan, Monahan, Herlihy, and PGA TOUR Policy Board member Jimmy Dunne, along with others to be announced in the future.
This merger brings a new era of excitement and competition in golf while recognizing the immeasurable strength of the PGA Tour's history, legacy, and pro-competitive model. It is a testament to the transformative power of collaboration and a strong indication of the bright future of golf.
