Everything you need to know as PGA Tour, DP World Tour and LIV Golf agree merger

The PGA Tour, DP World Tour and LIV Golf will merge forces.

A landmark agreement has been reached to merge the PGA Tour, DP World Tour and LIV Golf League.

In a statement released just after 3pm, it was confirmed that the three tours would be joining forces, ceasing months of disagreements and immediately ending litigation matters involving players.

The news stunned the golf world, with players on all three Tours seemingly unaware of the agreement until the announcement was made. It is believed that LIV Golf CEO Greg Norman was only informed of the news in a call with Yasir Al-Rumayyan, governor of Saudi Arabia’s Public Investment Fund (PIF), shortly before he and PGA Tour Commissioner Jay Monahan appeared on CNBC to make the announcement.

PGA Tour players will have the opportunity to question PGA Tour commissioner Jay Monahan in a special meeting at the Canadian Open on Tuesday afternoon.

The full statement sent to us read:

The PGA Tour, DP World Tour and the PIF today announced a landmark agreement to unify the game of golf, on a global basis. The parties have signed an agreement that combines 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 into a new, collectively owned, for-profit entity to ensure that all stakeholders benefit from a model that delivers maximum excitement and competition among the game’s best players.

In addition, PIF will make a capital investment into the new entity to facilitate its growth and success. The new entity (name TBD) will implement a plan to grow these combined commercial businesses, drive greater fan engagement and accelerate growth initiatives already underway. With LIV Golf in the midst of its second, groundbreaking season, the PGA Tour, DP World Tour and PIF will work together to best feature and grow team golf going forward.

Notably, today’s announcement will be followed by a mutually agreed end to all pending litigation between the participating parties.  Further, the three organizations will work cooperatively and in good faith to establish a fair and objective process for any players who desire to re-apply for membership with the PGA Tour or the DP World Tour following the completion of the 2023 season and for determining fair criteria and terms of re-admission, consistent with each Tour’s policies.

“After two years of disruption and distraction, this is a historic day for the game we all know and love,” said Monahan.

“This transformational partnership recognizes the immeasurable strength of the PGA Tour’s history, legacy and pro-competitive model and combines with it the DP World Tour and LIV – including the team golf concept – to create an organization that will benefit golf’s players, commercial and charitable partners and fans. 

“Going forward, fans can be confident that we will, collectively, deliver on the promise we’ve always made – to promote competition of the best in professional golf and that we are committed to securing and driving the game’s future.

“We are pleased to move forward, in step with LIV and PIF’s world-class investing experience, and I applaud PIF Governor Yasir Al-Rumayyan for his vision and collaborative and forward-thinking approach that is not just a solution to the rift in our game, but also a commitment to taking it to new heights. This will engender a new era in global golf, for the better.”

“Today is a very exciting day for this special game and the people it touches around the world,” said PIF Governor Yasir Al-Rumayyan. “We are proud to partner with the PGA Tour to leverage PIF’s unparalleled success and track record of unlocking value and bringing innovation and global best practices to businesses and sectors worldwide.  We are committed to unifying, promoting and growing the game of golf around the world and offering the highest-quality product to the many millions of long-time fans globally, while cultivating new fans. 
 
“There is no question that the LIV model has been positively transformative for golf. We believe there are opportunities for the game to evolve while also maintaining its storied history and tradition. This partnership represents the best opportunity to extend and increase the impact of golf for all. We look forward to collaborating with Jay and Keith to bring the best version of the game to communities around the world.”
 
Under the terms of the agreement, the Board of Directors of the new entity will oversee and direct all the new entity’s golf-related commercial operations, businesses and investments. The new entity will work to ensure a cohesive schedule of events that will be exciting for fans, sponsors and all stakeholders. PIF will initially be the exclusive investor in the new entity, alongside the PGA Tour, LIV Golf and the DP World Tour. Going forward, PIF will have the exclusive right to further invest in the new entity, including a right of first refusal on any capital that may be invested in the new entity, including into the PGA Tour, LIV Golf and DP World Tour. The PGA Tour will appoint a majority of the Board and hold a majority voting interest in the combined entity.
 
Separately, PGA Tour Inc. will remain in place as a 501(c)(6) tax-exempt organization and retains administrative oversight of events for those assets contributed by the PGA Tour, including the sanctioning of events, the administration of the competition and rules, as well as all other “inside the ropes” responsibilities, with Jay Monahan as Commissioner and Ed Herlihy as PGA Tour Policy Board Chairman. PIF’s Governor Yasir Al-Rumayyan will join the PGA Tour Policy Board. The DP World Tour and LIV Golf will retain similar administrative oversight of events on their respective Tours.
 
The Board of Directors of the new commercial entity will include Al-Rumayyan as Chairman and Monahan as Chief Executive Officer; the new entity’s Board will also include an Executive Committee comprising Al-Rumayyan, Monahan, Herlihy and PGA Tour Policy Board member Jimmy Dunne. The full Board will be announced at a later date, and it is anticipated that all three founding members will have representation.

Keith Pelley, Chief Executive of the DP World Tour, said: “This is a momentous day. We are delighted to be able to not only reignite our relationship with PIF, but also to have the opportunity to build on our current Strategic Alliance partnership with the PGA Tour.

“Together we will be stronger than ever and well positioned to continue to bring the game to all corners of the globe. To partner in this new entity and influence the growth of the game for all our DP World Tour members is energizing and exciting.”

All parties will work in the months to come to finalize the terms of the agreement, with details to be announced in due course.

How the golf world is reacting to the PGA Tour’s merger with LIV Golf

Martin Slumbers, CEO of The R&A

“We are pleased that an agreement has been reached which will help men’s professional golf move forward in a collaborative, constructive and innovative fashion. We care deeply about golf’s future and are committed to ensuring that the sport continues to thrive for many years to come. This agreement represents a huge step toward achieving that goal for golf and we look forward to working with the new entity for the benefit of the sport globally.”

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About the author

Rob Jerram – Digital Editor

Rob Jerram is the Digital Editor of todays-golfer.com. He specializes in the DP World Tour, PGA Tour, LIV Golf, and the Ryder Cup, spending large chunks of his days reading about, writing about, and watching the tours each month.

He’s passionate about the equipment used by professional golfers and is also a font of knowledge when it comes to golf balls, golf trolleys, and golf bags, testing thousands down the years.

Rob has been a journalist for more than 23 years, starting his career with Johnston Press where he covered local and regional news and sport in a variety of editorial roles across ten years.

He joined Bauer Media in September 2010 and worked as the Senior Production Editor of Today’s Golfer and Golf World magazines for ten years before moving into the Digital Editor’s role in July 2020.

During his time in the golf industry, Rob has interviewed and played golf with some of the biggest names in the game, including Rory McIlroy, Shane Lowry, Lee Westwood, Colin Montgomerie, and Rick Shiels. He’s traveled the world attending product launches and golf events and reported at both The Open and Ryder Cup.

He has been playing golf for almost three decades and is a member at Greetham Valley in Rutland and Spalding Golf Club in Lincolnshire, playing off a 9.7 handicap.

Away from golf, Rob enjoys spending time with his wife and two daughters, watching Peterborough United FC, going for long walks, flying his drone, cooking, and reading.

Rob uses a Callaway Paradym driver, TaylorMade M5 5-wood, TaylorMade P790 driving iron, Callaway Paradym irons (4-AW), TaylorMade MG3 wedges (52º, 58º), Odyssey Tri-Hot 5k Double Wide putter, and Callaway Chrome Soft X golf ball.

You can email Rob or get in touch with him on Twitter.