PGA TOUR, DP World Tour, and PIF Establish New Commercial Entity to Unify Golf

0
50
PGA TOUR
GREAT EXUMA, BAHAMAS - JANUARY 12: PGA TOUR flag during the first round of the Korn Ferry Tour's The Bahamas Great Exuma Classic at Sandals Emerald Bay golf course on January 12, 2020 in Great Exuma, Bahamas. (Photo by Ben Jared/PGA TOUR via Getty Images)

In a significant development for the world of golf, the PGA TOUR, DP World Tour, and the Public Investment Fund (PIF) have announced the formation of a new commercial entity to unify the game globally. This landmark agreement aims to promote and grow golf for the benefit of all stakeholders, bringing an end to ongoing litigation between the parties involved.

The agreement entails the consolidation of PIF’s golf-related commercial businesses and rights, including LIV Golf, with the commercial businesses and rights of the PGA TOUR and DP World Tour. Through this joint venture, a new for-profit entity will be created, ensuring maximum excitement and competition among the best players in the game while benefiting all stakeholders.

To facilitate the growth and success of the new entity, PIF will make a capital investment. The yet-to-be-named entity will implement strategies to expand the combined commercial businesses, enhance fan engagement, and accelerate ongoing growth initiatives. Additionally, the PGA TOUR, DP World Tour, and PIF will collaborate to promote and develop team golf, building upon the success of LIV Golf’s groundbreaking second season.

Importantly, this announcement also signifies the end of all pending litigation between the participating parties. Moving forward, the organizations will work cooperatively and in good faith to establish a fair and objective process for players who wish to reapply for membership with the PGA TOUR or DP World Tour following the completion of the 2023 season. The criteria and terms of re-admission will be determined in line with each tour’s policies.

PGA TOUR Commissioner Jay Monahan expressed his excitement about the partnership, stating, “This transformational partnership recognizes the immeasurable strength of the PGA TOUR’s history, legacy, and pro-competitive model.” He emphasized the commitment to promoting competition among the best professional golfers and driving the game’s future.

PIF Governor Yasir Al-Rumayyan echoed the sentiment, highlighting the goal of unifying, promoting, and growing the game of golf worldwide. Al-Rumayyan emphasized the positive impact of the LIV model on the sport and the potential for golf to evolve while honoring its storied history and tradition. The partnership aims to bring the best version of the game to communities worldwide.

Under the terms of the agreement, the new entity’s Board of Directors will oversee and direct all golf-related commercial operations, businesses, and investments. The focus will be on creating an exciting schedule of events that engage fans, sponsors, and stakeholders. PIF will be the initial exclusive investor, joined by the PGA TOUR, LIV Golf, and the DP World Tour. PIF will also have the right to further invest in the new entity, including into the PGA TOUR, LIV Golf, and DP World Tour.

Separately, PGA TOUR Inc. will continue as a tax-exempt organization, responsible for administrative oversight of events and other responsibilities. The DP World Tour and LIV Golf will retain similar administrative oversight on their respective tours. The Board of Directors of the new commercial entity will include Al-Rumayyan as Chairman and Monahan as CEO.

Keith Pelley, Chief Executive of the DP World Tour, expressed his enthusiasm about the collaboration, emphasizing the opportunity to strengthen the sport’s global presence and positively influence its growth.

As the details of the agreement are finalized, further information will be announced in due course, showcasing the exciting prospects for unified golf.