Leaked framework agreement reveals details of PGA Tour, DP World Tour and PIF merger

His Excellency Yasir Al-Rumayyan is PIF Governor, which has joined forces with the PGA Tour and DP World Tour.

A leaked document has revealed more details about the PGA Tour, DP World Tour, and PIF merger, confirming that LIV Golf will continue and will be backed in its bid for Official World Golf Rankings recognition.

The document, obtained by the Associated Press, was signed on May 30 by PGA Tour Commissioner Jay Monahan, DP World Tour Chief Executive Keith Pelley, and PIF Governor His Excellency Yassir Al-Rumayyan and outlines the framework of the merger agreement.

The document says the three “share a common goal of creating a global golf partnership and of growing and promoting the game of golf globally, ending divisions and unifying the game of golf for the benefit of all their stakeholders, including players, sponsors and fans of the game worldwide.”

It also confirms that 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”.

Speculation has been rife that the merger will signal the end of the Saudi-backed LIV Golf, but the document says the PGA Tour and DP World Tour will coexist with LIV and will work with the rebel tour to find a way forward for the players who joined it.

The agreement says the tours “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.”

LIV golfers remain suspended from the PGA Tour, with DP World Tour players facing big fines if they play in LIV events. It has resulted in a large number of player resignations, including Dustin Johnson, Bryson DeChambeau, Lee Westwood, and Sergio Garcia. LIV players have been able to play in Majors if eligible. However, all players will be entitled to reapply for membership of all Tours following the conclusion of the 2023 season. The document also confirms previous reports that all litigation will come to an end.

While many saw the merger as Saudi Arabia’s Public Investment Fund (PIF) taking ownership of golf, the controlling interest in the new commercial entity, known initially as “NewCo”, will remain with the PGA Tour no matter how much money PIF puts in.

NewCo will conduct an “objective empirical data-driven evaluation of LIV and its prospects and potential” and research the benefits of “how best to integrate team golf into PGA Tour and DP World Tour events going forward”.

And, in a huge boost for LIV, the document also confirms that the PGA and DP World Tours will back LIV’s bid for Official World Golf Ranking (OWGR) recognition with plans being put in place to help the Saudi-backed tour meet the criteria. LIV applied for OWGR points last July but has failed to see any progress. It currently fails to meet the recognized criteria due to the size of its fields and lack of a cut.

NewCo will be the “Entity for Professional Golf” while the PGA Tour will be the “Competition Manager for NewCo. PIF will continue to provide all of the funds required to operate LIV through an investment into NewCo.

The new organization will be an “umbrella for all future golf-related investments of the three groups” and plans to create financial returns through “targeted mergers and acquisitions to globalize the sport.”

Meanwhile, PIF will become a “premier corporate sponsor” in both the PGA and DP World Tours, with a promise of large investment in both.

Monahan, Al-Rumayyan, and LIV Golf CEO Greg Norman have all been invited to testify at a US Senate panel on 11 July. The merger has faced heavy criticism from some US politicians. US Senator Richard Blumenthal has asked the PGA and LIV for communications and records on their planned merger, citing concerns about the Saudi government’s role in the deal and risks posed by a foreign government entity assuming control over the sport.

It remains to be seen if Monahan will attend the panel having temporarily stepped away from his role to recover from a “medical situation” earlier in June. The Tour commissioner has handed over the reins to Chief Operating Officer Ron Price and executive vice president Tyler Dennis during his absence.

The leaked document said that it hopes to reach a definitive deal by December 31, 2023.

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